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JD Wetherspoon continues to show other pubcos how it should be done as H1 profits rise 17.5%
JD Wetherspoon said it would start paying dividends again as H1 pretax profit rose by 17.5%, from a turnover up 4.1% to £488million.
The company, which has 746 pubs across Britain, said underlying pretax profit rose to £36.2 million in the 26 weeks to January 24.
Wetherspoon said it would pay a total dividend of 12 pence per share and, in light of the refinancing, rewarding shareholders with a special dividend of 7 pence per share.
The company scrapped dividend payments this time last year pending successful completion of a refinancing.
Wetherspoon said today it had agreed a new £530 million banking facility, expiring in March 2014, with a syndicate of eleven banks, comprising a mix of new and current lenders, to replace its previous £435 million pound which was due to expire in December this year.
The first half saw the opening of 17 new pubs and the closure of 2 sites, following the closure of Terminal 2 at Heathrow, bringing the number open at the period end to 746. The majority of new openings in this period have been existing pubs, with both rents and development costs being lower than historic trends. JDW intend to open approximately 50 pubs in this financial year.
Tim Martin, the Chairman of J D Wetherspoon plc, said:
"Sales and profits in the six months under review were at record levels, notwithstanding the immense pressure on the pub business from government legislation, thanks, above all, to the great efforts of all of our staff. Trading in the 6 weeks to 7 March 2010 continues on a similar trend to last year, with like-for-like sales down 0.4% and total sales increasing by 3.9%. As a result of our sales, profits and free cash flow, together with our continued efforts to improve every area of the business, I remain confident of our future prospects."
Wetherspoon has been among the best performing pub companies through the recession as cut price meals such as ham, egg and chips for £2.99 and a pint of Greene King IPA beer for 99 pence proved attractive to cash-strapped consumers.
Shares in Wetherspoon closed yesterday at 467.7 pence, valuing the business at £651 million.
The company, which has 746 pubs across Britain, said underlying pretax profit rose to £36.2 million in the 26 weeks to January 24.
Wetherspoon said it would pay a total dividend of 12 pence per share and, in light of the refinancing, rewarding shareholders with a special dividend of 7 pence per share.
The company scrapped dividend payments this time last year pending successful completion of a refinancing.
Wetherspoon said today it had agreed a new £530 million banking facility, expiring in March 2014, with a syndicate of eleven banks, comprising a mix of new and current lenders, to replace its previous £435 million pound which was due to expire in December this year.
The first half saw the opening of 17 new pubs and the closure of 2 sites, following the closure of Terminal 2 at Heathrow, bringing the number open at the period end to 746. The majority of new openings in this period have been existing pubs, with both rents and development costs being lower than historic trends. JDW intend to open approximately 50 pubs in this financial year.
Tim Martin, the Chairman of J D Wetherspoon plc, said:
"Sales and profits in the six months under review were at record levels, notwithstanding the immense pressure on the pub business from government legislation, thanks, above all, to the great efforts of all of our staff. Trading in the 6 weeks to 7 March 2010 continues on a similar trend to last year, with like-for-like sales down 0.4% and total sales increasing by 3.9%. As a result of our sales, profits and free cash flow, together with our continued efforts to improve every area of the business, I remain confident of our future prospects."
Wetherspoon has been among the best performing pub companies through the recession as cut price meals such as ham, egg and chips for £2.99 and a pint of Greene King IPA beer for 99 pence proved attractive to cash-strapped consumers.
Shares in Wetherspoon closed yesterday at 467.7 pence, valuing the business at £651 million.
Thu, 11th Mar 2010