TIDMJDW
RNS Number : 2309U
Wetherspoon (JD) PLC
11 July 2018
11 July 2018
J D WETHERSPOON PLC
PRE-CLOSE TRADING STATEMENT
J D Wetherspoon plc presents below its pre-close trading
statement for the financial year to 29 July 2018. The preliminary
results are due to be announced on 14 September 2018.
Current trading
For the 10 weeks to 8 July 2018 like-for-like sales increased by
5.2% and total sales by 5.6%. In the year to date (49 weeks to 8
July 2018) like-for-like sales increased by 5.2% and total sales by
4.2%.
Property
The Company has opened 6 new pubs since the start of the
financial year and has completed the sale of 23 pubs. No further
openings are expected in the current year.
About GBP9m of exceptional, non-cash losses are expected in this
financial year, mainly a result of pub disposals which were below
the value in our balance sheet.
The Company has also spent GBP15.6m on buying the freehold
"reversions" of pubs of which we were previously tenants.
Financial position
The Company remains in a sound financial position. Net debt at
the end of this financial year is expected to be about GBP740m.
The Company spent GBP51.6m in respect of share buybacks in the
first quarter of the year.
As previously reported, the shareholding of Tim Martin has risen
above 30%, as a result of share buybacks in the last 12 years. A
rule 9 'whitewash', under the relevant regulations, will again be
put forward at the General Meeting in November, which will allow
the Company to continue to undertake buybacks
Outlook
The chairman of Wetherspoon, Tim Martin, said:
"We are frequently asked about the effect of Brexit on the
Company and the economy. The main advantage of Brexit is that the
EU is a protectionist system that imposes high tariffs on non-EU
imports such as wine, rice, coffee, oranges, children's shoes and
clothes, and over 12,000 other products.
"Leaving the EU allows the UK to adopt the approach of countries
like Singapore, Hong Kong, Switzerland and Australia by dismantling
these tariff walls, which improves general living standards.
"As the retiring Australian High Commissioner, Alexander Downer,
has recently said:
"You will do well if you open your markets and you embrace free
trade; there was never a country that embraced free trade that was
poor as a result."
"In this connection, Wetherspoon has started to review its
product range and has exchanged French champagne for sparkling wine
from the UK and Australia, and German wheat beer for UK and
American alternatives. The new products are now available, at
reduced prices, in our pubs.
"We plan further initiatives in this area in the coming
months.
"Huge progress has been made in leaving the EU: the referendum
has taken place; the manifestos of the main parties, respecting the
result, were endorsed in the general election; Article 50 was
triggered and the sensible decision was taken to allow legal EU
migrants to stay post-Brexit.
"Unsurprisingly, the prime minister has run into difficulties by
making the mistake of prioritising a "deal" with the unelected EU
representatives, which they have little incentive to accommodate,
rather than a sensible implementation of Brexit in areas under the
control of parliament.
"99% of the benefits of leaving the EU, including the avoidance
of vast financial contributions, the elimination of tariffs and the
reacquisition of fishing rights, need no agreement from any third
party. The prime minister can avoid most current problems by
prioritising these areas.
"I enclose below (Appendix 1) an article I wrote for the Sun
newspaper on this issue.
"We continue to anticipate a trading outcome for this financial
year in line with our previous expectations."
"As in the current year, we anticipate considerable cost
increases next year, in areas including business rates, the sugar
tax, utility taxes and wages. In addition, as a result of an
increase in our "swaps", our interest rates will rise by around
GBP7m.
Trading statement ends.
Article by Tim Martin in The Sun newspaper on 28 June 2018:
"WE HAVE A TERRIFIC CHANCE TO CHOOSE FREE TRADE AND A ROAD TO
RICHES AFTER BREXIT
"After the epic referendum battle and two years of trench
warfare, the UK is approaching a fork in the road.
"The key issue for the country today is whether we adopt the
free trade approach of hugely successful economies such as
Singapore, Hong Kong, Switzerland, Australia and New Zealand, or
whether we continue to shelter behind the EU's high-tariff
barriers.
"Tariffs are taxes on imported goods, which keep prices in shops
and pubs at artificially high levels.
"The EU masquerades as a free-trade system, but the reality is
that it imposes tariffs on imports from the 93 per cent of the
world that isn't a member of the bloc.
"Brussels' unelected chief Eurocrat Jean-Claude Juncker and his
autocratic acolytes have the temerity to lecture Donald Trump on
free trade.
"Yet the EU itself keeps prices high by imposing tariffs on more
than 12,000 imported products, including rice, coffee, oranges, new
world wine, and children's shoes and clothes.
"For example, every bottle of New Zealand wine bought in a UK
pub or supermarket has been subject to a tariff, which is collected
by the UK government and sent to Brussels.
"The best future policy for the UK is to follow our Singaporean
friends and Antipodean cousins by getting out of the EU's
protectionist customs union, and ending tariffs.
"Free trade never made anyone poorer, as the Aussie High
Commissioner recently said. And, indeed, free trade is what most
people thought they were voting for in the 2016 referendum.
"Free trade, cunningly styled "no deal" by pro-Remain spin
doctors, has always been the best option, but has become even more
attractive, now that the intransigence and arrogance of EU
negotiators has become clear.
"Fair play, Theresa May and David Davis - you gave the
negotiations with the EU your best shot but it's now time to take
the road to freedom.
"Carping critics say they could have done better, but the public
instinctively knows that you've tried hard and that it takes two to
tango.
"So, let's be bold and scrap all tariffs on Brexit day, March
29, 2019.
"It will immediately boost living standards, by reducing prices,
and will be especially beneficial for the less well-off. Juncker
will cry into his claret at the new, competitive UK.
"Even companies such as BMW and Airbus, which urged us to join
the euro and asked their workers to vote Remain, will benefit.
"Their engines, and other components imported from the EU, would
continue to be free of tariffs. However, components from outside
the EU would also become tariff-free, which is not usually the case
today. Not only that, but their workers would be better off too,
which is a plus for any business.
"And instead of sending GBP39billion into Brussels' unaudited
coffers, let's invest the money here.
"Dividing it equally among our 650 MPs would allow each one to
spend GBP60million in their constituency, on local projects. If MPs
don't like that suggestion, the GBP39billion could instead be used
to reduce taxes or government debt. Our democratically elected
Parliament can debate the best approach and decide.
"Most of us understand Chancellor Philip Hammond's dogged
attempts to get public expenditure under control, after the trauma
of the credit crunch.
"But, it must make sense to invest this money in the UK, rather
than the EU.
"Finally, free of Juncker's shackles, we can regain control of
our fishing waters, boosting the morale and income of our
beleaguered coastal communities.
"No longer will 60 per cent of fish in UK waters be landed by EU
boats.
"The public, too, has its role to play now. Project Fear,
promoted by the CBI, the Financial Times and big businesses, has
tried to frighten us with threats of gridlocked Channel ports and
lorry parks across Kent when we leave the EU.
"Few believe them, but let's call their bluff. UK consumers and
businesses should now start to favour and prefer non-EU and British
products wherever possible, dramatically reducing pressure on those
ports.
"Wetherspoon has started by swapping champagne for UK and Aussie
sparkling wine, and German wheat beer for the English and Welsh
equivalent.
"As a result of this tactic, the public is benefitting from
equal or better quality and lower prices. And there are a large
number of other EU products that can be replaced in all pubs and
supermarkets in the next year or two.
"The public instinctively understands the benefits of world
trade, so let's make buying non-EU a national goal for the next few
years.
"It's tough on our excellent EU suppliers, of course, but that's
the price the continent is paying, unfortunately, for a failing and
undemocratic system, with unelected apparatchiks like Juncker and
Barnier in charge."
Ends.
Enquiries:
John Hutson Chief Executive Officer 01923 477777
Ben Whitley Finance Director 01923 477777
Eddie Gershon Company spokesman 07956 392234
Notes to editors
1. J D Wetherspoon owns and operates pubs throughout the UK and
Ireland. The Company aims to provide customers with good-quality
food and drink, served by well-trained and friendly staff, at
reasonable prices. The pubs are individually designed, and the
Company aims to maintain them in excellent condition.
2. Visit our website: www.jdwetherspoon.com
3. This announcement has been prepared solely to provide
additional information to the shareholders of J D Wetherspoon, to
meet the requirements of the FCA's Disclosure and Transparency
Rules. It should not be relied on by any other party, for any other
purposes. Forward-looking statements have been made by the
directors in good faith, using information available up until the
date on which they approved this statement. Forward-looking
statements should be regarded with caution, because of the inherent
uncertainties in economic trends and business risks.
4. This announcement contains inside information on J D Wetherspoon plc.
5. The current financial year comprises 52 trading weeks to 29 July 2018.
6. The next trading update is expected to be the Company's final
results announcement on 14 September 2018.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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