SHARES in JD Wetherspoon soared by nearly 14 per cent after the pub giant served up a bumper profit rise – and Brexit-backing boss Tim Martin renewed his attacked on the European Union (EU).
The company, which has more than 60 pubs in Scotland, made a £76.4 million profit before tax for the 53 weeks ended July 30, up 15.6 per cent on last year. That came as turnover climbed 4.1 per cent to nearly £1.7 billion, according to the firm’s preliminary results.
Wetherspoon chairman Tim Martin used the results to make his now customary attack on the EU, claiming UK politicians are “dealing with unelected oligarchs” in Brussels in the course of the Brexit negotiations.
And he declared the stance taken by EU negotiators will ultimately be damaging for suppliers on the European mainland.
Mr Martin said: “Since the oligarchs are not subject to judgment at the ballot box, their approach is dictated by more sectarian factors – the interests and ideology of EU apparatchiks like them, rather than residents or businesses from EU countries.
“As a result of their current posturing and threats, EU negotiators are inevitably encouraging importers like Wetherspoon to look elsewhere for supplies.
“This process is unlikely to have adverse effects on the UK economy, as companies will be able to switch to suppliers representing the 93 per cent of the world’s population which is not in the EU, but this evolution will eventually be highly damaging to the economy of the EU.
“Wetherspoon is extremely confident that it can switch from EU suppliers, if required, although we would be very reluctant to initiate such actions.”
Mr Martin said like-for-like sales in Wetherspoon pubs were up 6.1 per cent since year-end, but warned the trend was unlikely to continue because the boost brought by the summer holidays would ease back. He anticipates like-for-like sales growth of three to four per cent will be needed to match last year’s profit. But George Salmon at Hargreaves Lansdown believes this is realistic. The analyst said: “The news that J D Wetherspoon has served up stronger than expected results, plus an even stronger start to the current year, will certainly have put investors in high spirits, especially since it comes just days after a disappointing update from rival Greene King.
“The group does warn that the excellent start to this year is unlikely to be maintained, and in light of cost headwinds and continued closures, it will need like like-for-like sales to grow by three to four per cent to repeat last year’s profit. However, given the momentum it is currently enjoying, there’s no reason to think this should be a problem.”
Shares closed up 145p at 1,189p.
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