JD Wetherspoon offloads 26 pubs as it posts healthy LFL sales

JD Wetherspoon has revealed it has sold or surrendered a total of 26 pubs so far this year and has seen its like-for-like sales in the year-to-date increase by 7.7%. 

According to the group, which currently has a trading estate of 801 pubs, most of the disposals were smaller and older sites, or were where the company has a second pub in “reasonably close proximity”. 

As a result of offloading these pubs, JD Wetherspoon benefited from a net cash inflow of £8.7m.

Like-for-like sales during the 10-week period to 7 July also rose by 5.8%. 

JD Wetherspoon expects its net debt to be approximately £670m at the end of the financial year. 

On 6 June, the group signed a new four-year £840m banking agreement “on attractive terms”. 

Tim Martin, chairman of JD Wetherspoon, said: “The gradual recovery in sales and profits, following the pandemic, has continued in the current financial year. Total sales are, again, at record levels with fewer pubs. Sales per pub are approximately 21% higher than pre-pandemic levels, which has helped to compensate for the very substantial increase in costs.

“The last government failed to implement tax equality between pubs and supermarkets, leading to pub closures and underinvestment – Wetherspoon hopes that the current chancellor, with a Bank of England pedigree, will understand how many beans make five, and rectify this inequality.”

He added: “The company continues to expect profits in the current financial year to be in line with market expectations.”

The pub chain expects to release its preliminary financial results later this year on 4 October.