Sales at pub chain JD Wetherspoon (LON:JDW) grew at a weaker pace than expected in its third quarter of the year, affected by the timing of the May bank holiday.
The group announced a like-for-like sales increase of 3.5 percent, with total sales up 2.8 percent over the 13 period to 29 April 2018. However, in the same quarter last year sales were markedly higher, up 6 percent. The group attributed the fall to the timing of the early May bank holiday, which was included in the third quarter last year but not this year, which reduced 0.5 percentage points.
Wetherspoons also said that it faces “significant cost increases in the second half in areas which include labour, business rates and the sugar tax.”
It added: “We continue to anticipate a trading outcome for this financial year in line with our previous expectations.”
Since the start of the financial year the company has opened five new pubs and sold 19, and expects to open one further pub in the next quarter. The company believes the market value of its pub estate remains comfortably above the net book value.
Net debt at the end of the quarter was £754 million and is expected to be around £740 million at the end of the financial year.
Shares in JD Wetherspoon are currently up 0.85 percent at 1,192.00 (0818GMT).
