Wetherspoon ‘will be loss-making’ for first half of financial year, but hopes for stronger second half

Tim Martin, chair of pub group JD Wetherspoon, has said the company will be loss-making for the first half of its financial year, but hopes that with the ending of restrictions, improved customer confidence and better weather, it will have a much stronger performance in the second half of the year.

For the group’s financial year to date, including the 25 weeks to 16 January 2022, like-for-like sales decreased by 11.7% and total sales by 13.3%, compared to the similar period in the 2020 financial year. Sales in the second quarter were affected by Plan B restrictions announced by the government in December. In the 12 weeks to 16 January 2022, like-for-like sales decreased by 15.6% and total sales by 16.6%.

Martin said that the uncertainty created by the introduction of Plan B Covid-19 measures “makes predictions for sales and profits hazardous”.

The update also included damning comments regarding reports of parties taking place at 10 Downing Street during lockdowns, which it said, “highlight other ramifications of ‘lockdowns’ and pub closures”.

Meanwhile, Wetherspoon accused Blackrock, which is understood to own 3.51% of Wetherspoon shares on behalf of its clients, of voting against all non-executive directors for alleged shortfalls in corporate governance standards at its November annual general meeting

A statement said: “Wetherspoon has fully complied with the ‘comply or explain’ provisions of the corporate governance code and believes that Blackrock has not taken account of Wetherspoon's explanations, as it is bound to do by the code.”

It is the second time in recent months the pub chain has turned on its shareholders, having accused one of its major investors of breaching the Corporate Governance Code in November 2021.

The update concluded with a call for lower VAT for hospitality.