Profits tank at Wetherspoons
PUBLISHED: 09:58 15 March 2019 | UPDATED: 13:44 15 March 2019
Profits at pub chain JD Wetherspoon have tumbled by almost 20% as a result of rising labour costs.
Pre-tax profits in the six months to January 27 fell 18.9% to £50.3m - in part due to a leap of £33m in labour costs.
The pub giant has twelve pubs in Norfolk, in Norwich, Dereham, King’s Lynn, Great Yarmouth, Fakenham, Thetford and Downham Market.
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Despite the headwinds, revenue did rise at the company by 7.1% to £889.6 million and like-for-like sales were up 6.3% in the period.
Chairman Tim Martin warned that costs would continue to rise in the second half.
He said: “As previously indicated, costs in the second half of the year will be higher than those of the same period last year.
“The company anticipates an unchanged trading outcome for the current financial year.”
He added that in the six weeks to March 10, like-for-like sales increased by 9.6% and total revenue jumped 10.9%, helped by good weather and favourable comparables.