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- Dividends are also back on the menu for Wetherspoon shareholders
Wetherspoon boss Tim Martin has criticized academics’ “a bit silly” proposals to serve beer in two-thirds pint measures.
JD Wetherspoon boss Tim Martin has criticized academics’ “a bit silly” proposals to serve beer in two-thirds pint measures, and called for no further regulations to be introduced into the under-pressure pub sector.
It came as the pub giant posted a rebound in profits as increased demand offset a reduction in the group’s pub stock.
Martin, Wetherspoon’s chairman, said proposed new regulations to reduce alcohol consumption would likely lead to more Britons drinking at home, or even in parks, rather than in pubs.
He criticized a study published last month by Cambridge University academics, which called on the Government to stop serving beer in pints but consider using two-thirds glasses, also called schooners.
Martin said the proposal was “a bit silly”, suggesting that the use of schooners in Australia was not linked to “any notable reduction in consumption”.
He added: “Common sense suggests that reducing glass size, due to human nature, is unlikely to reduce alcohol consumption in pubs, nor would it have any effect on drinks bought in supermarkets, unless that packaging sizes in supermarkets would also be unrealistically reduced. ‘.
Martin also criticized speculation that the Government could reduce opening hours for pubs and hospitality. Since then, Labor ministers have denied that trading hours can be reduced.
Update: Dividend payments are on the cards for Wetherspoon shareholders
“None of these proposals seem to pass the common sense test,” the pub owner said.
Mr Martin’s comments came as Wetherspoon revealed its pre-tax profits rose 73.5 per cent to £73.9 million for the year to July 28, compared with the previous year.
This represented a further recovery in profits for the pub business, but remained below pre-pandemic levels.
Revenue grew 5.7 per cent to £2.04bn, boosted by a 7.6 per cent rise in like-for-like sales.
Wetherspoon posted a 4.9 per cent rise in like-for-like sales in the nine weeks to September 29, half the 9.9 per cent growth seen in the same period last year.
Dividends are back on the menu for shareholders after the pub chain revealed it will pay out 12p per share on November 28.
This is the same as the 2019 payment, reflecting the group’s improving business and financial position after a long period of pandemic disruption.
Looking ahead, Martin says: “The company currently anticipates a reasonable result for the current financial year, subject to our future sales performance.”
Charlie Huggins of Wealth Club said: ‘Wetherspoons has enjoyed a good year, reporting a significant recovery in sales and profits and a return to the dividend books.
“With many pub and restaurant businesses struggling in the current environment, this is an impressive performance.”
wetherspoon stock rose 0.48 per cent or 3.5 pence to 728.00 pence on Friday.
Richard Hunter, head of markets at Interactive Investor, said: “The share price has yet to recover to pre-pandemic levels, where shares peaked at almost £17 in December 2019, compared to the current level. about £7.30″. .
‘Some limited progress has been made recently – the price has risen 9 per cent over the last year, which compares with a gain of 18.6 per cent for the FTSE 250 overall.
‘Despite this bounce, the shares are still down 32 per cent over the past two years, leaving the valuation slightly below the long-term average, which in turn could improve future prospects.
“The market consensus on the stock as a strong hold reflects some conviction in Wetherspoon’s ability to continue to defend its position, while adding some caution to a challenging mix.”
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