PUB giant JD Wetherspoon has reported a slowing of like for like sales growth in its third quarter because of the timing of the May bank holiday, while raising the prospect of increased costs in the second half of the year.
The company, which has more than 70 pubs in Scotland, reported a 3.5% rise in like for like sales for the 13 weeks to April 29.
However, it expects the exclusion of the May holiday from its third quarter figures to have hit like for like sales by about 0.5%. It reported like for like sales growth of four per cent when it reported its third quarter results last year.
Wetherspoon, run by arch-Brexiter Tim Martin, said trading for the year is likely meet previously declared expectations. But he again warned of likely cost increases in the second half, citing labour, business rates and the sugar tax.
Mr Martin said there was also “some uncertainty as to the effect on sales of the FIFA World Cup”. The event has traditionally brought mixed fortunes for the licensed trade because the matches are free to air, which typically means there is less incentive for fans to watch matches in pubs.
Meanwhile, Mr Martin voiced his support for those who want the UK to exit the customs union as part of the Brexit process. The issue was brought into the spotlight this week when Foreign Secretary Boris Johnson branded Prime Minister Theresa May’s proposal for a customs partnership with the European Union (EU) after Brexit as “crazy”.
Mr Martin said: “A debate is currently taking place as to whether the UK should remain in the EU’s customs union post-Brexit. I feel sure that the UK should leave. This will enable parliament to eliminate taxes on non-EU food and drink imports, reducing prices in the shops, which will immediately improve living standards.
“It makes no sense for the UK to continue to impose taxes on New World wines, coffee, rice and thousands of other products, and then to send the proceeds to Brussels.”
He added: “The UK should copy countries like New Zealand, Australia and Singapore, which have successfully adopted free trade policies, rather than being beholden to the undemocratic EU and its unelected presidents.”
Wetherspoon said it has opened five pubs and sold 19 since the start of the financial year, and plans to open one more this year.
Shares in Wetherspoon closed down 5p at 1,177p.
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