JD Wetherspoon posts 5.4% increase in sales in pre-close statement

Pub operator JD Wetherspoon has posted an increase in like-for-like sales figures and a strong operating profit margin, in its pre-close statement for the year to date.

In the 49 weeks to 6 July, like-for-like sales increased by 5.4%, and total sales increased by 9.8%. The operating margin was at 8.1% in the last 10 weeks of the period, and the company said it expects the full year to come in at about this level, with the next year's figure expected at 7.7% - 8.1%.

The preliminary results for the company are expected on 12 September 2014.

The results come as the company opened 40 new pubs and closed five. It expects to have opened 45 new sites in total by the end of the financial year on 27 July 2014.

However, the company once again took the opportunity to state that the high VAT levels in the UK remained a major threat to the pub industry, in comparison to supermarkets. This was particularly the case in less affluent parts of the country, such as northern England, Scotland and south Wales.

It said that the government's late-night levy for pubs staying open after midnight was also a threat, and that Wetherspoon had decided to reduce opening hours in most of its pubs from 1am to midnight "as and when the levy is introduced or renewed". It called this a "retrograde step".

The company has long demanded a VAT reduction, with chairman Tim Martin having first called for a change in 2012.

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