Friday preview: Wetherspoon reports full year results

JD Wetherspoon is expected to report flat full year earnings on Friday after warning that increased labour costs would cut into profit margins.

The pub operator in January said that annual profit will be at the low end of market expectations due to higher wage costs.

In the trading update, the company said sales at pubs and bars open a year or more rose 3.3% and total sales increased 6.3% in the 12 weeks to 17 January. However, the group’s profit margin shrank after it raised minimum hourly pay by 8% in August to attract talent.

Numis has pencilled in full year earnings before interest, depreciation and amortisation (EBITDA) of £170.8m, down from £173.9m the previous year. It estimates earnings per share will dip to 48.4p from 48.6p.

Numis analyst Tim Barrett said: “Overall we expect full year growth to be flat. Current FY17 guidance is for like-for-like in line with inflation, wages +4% and other costs +1%, implying further margin pressure. Bulls expect price increases to reverse recent negative earnings momentum but we remain cautious.”

Friday 09 September

INTERIMS
Deltex Medical Group, Global Ports Investments GDR (REG S)

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INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Current Account (GER) (07:00)
Wholesale Price Index (GER) (07:00)
Wholesales Inventories (US) (15:00)

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Wetherspoon (J.D.)

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Balance of Trade (09:30)

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