JD Wetherspoons has recorded its first annual profit since the pandemic as revenues soared 12.7% in the 52 weeks to 30th July 2023.
The company has enjoyed a resurgence after the pandemic and selling more pints has helped Wetherspoon’s Free cash inflow per share increase over 1,00% to 211.4p.
Operating profit rose 92% to £106m but Wetherspoon did not declare a dividend for the period.
“The home of some of the UK’s cheapest pints has reason to be cheerful. The growth in today’s full year results has seen all revenue streams rise above pre-pandemic levels, and so far this year like for like sales are 17.3% ahead of 2019. Margins also recovered well last year. The group notes increasing certainty over cost inflation, giving cause for hope that margins can keep going in the same direction,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
“The group has also made meaningful inroads into its debt pile last year with underlying net debt down £250m to £642m including the repayment of the £100m owed under the Coronavirus Large Business Interruption Loan Scheme. That’s been enabled by strong free cash flow, the prudent sale of the company’s interest rate swaps, and proceeds from reducing the size of the estate. The dividend is still off the table, and in the current interest rate environment, prioritising debt reduction is a sensible approach.”