Pub chain JD Wetherspoon (LON:JDW) shares shot up on Wednesday morning, after saying full-year performance was likely to be in line with expectations after a significant rise in sales.
In the year to date, like-for-like sales increased by 5.2 percent and total sales by 4.2 percent. For the 10 weeks to 8 July 2018, like-for-like sales increased by 5.2 percent and total sales by 5.6 percent, benefitting from a period of hot weather and the World Cup.
“As in the current year, we anticipate considerable cost increases next year, in areas including business rates, the sugar tax, utility taxes and wages. In addition, as a result of an increase in our ‘swaps’, our interest rates will rise by around £7 million,” the company said.
As usual, Wetherspoon chairman Tim Martin took the opportunity to promulgate the benefits of Brexit:
“We are frequently asked about the effect of Brexit on the Company and the economy. The main advantage of Brexit is that the EU is a protectionist system that imposes high tariffs on non-EU imports such as wine, rice, coffee, oranges, children’s shoes and clothes, and over 12,000 other products.
“Leaving the EU allows the UK to adopt the approach of countries like Singapore, Hong Kong, Switzerland and Australia by dismantling these tariff walls, which improves general living standards.
“Huge progress has been made in leaving the EU: the referendum has taken place; the manifestos of the main parties, respecting the result, were endorsed in the general election; Article 50 was triggered and the sensible decision was taken to allow legal EU migrants to stay post-Brexit.
“Unsurprisingly, the prime minister has run into difficulties by making the mistake of prioritising a “deal” with the unelected EU representatives, which they have little incentive to accommodate, rather than a sensible implementation of Brexit in areas under the control of parliament.
“99 percent of the benefits of leaving the EU, including the avoidance of vast financial contributions, the elimination of tariffs and the reacquisition of fishing rights, need no agreement from any third party. The prime minister can avoid most current problems by prioritising these areas.”
Shares in JD Wetherspoon are currently trading up 5.10 percent at 1,307.00 (0922GMT).