Wetherspoon sales rise in Q3, share buyback announced

JD Wetherspoon reported a rise in like-for-like sales in the third quarter and announced plans to buy back up to £60m of shares.

In the 13 weeks to 24 April, LFL sales at the pub operator rose 3.8%, while total sales were up 5.5%.

Year-to-date, LFL sales were up 3.2% and total sales have increased by 5.9%.

Meanwhile, the operating margin in the period was 6.4% compared with 7.5% in the same period last year. Wetherspoon said this reflected the increases in the starting rates for hourly paid staff in August 2015, which totalled around 8%.

Chairman Tim Martin said: “Sales during the quarter have continued at approximately the same levels reported on 11 March 2016 in our interim statement.

“We are still aiming for a reasonable outcome for the financial year, before the impact of the previously announced £3.8m property gain realised in the first six months."

Also on Wednesday, Wetherspoon announced plans to buy back between zero and £60m of shares in the financial year ending July 2017, with purchased shares being cancelled.

Wetherspoon said it has opened eight new pubs since the start of the financial year and has closed 19, eight of which have been sold.

It expects to open 16 new pubs in this financial year and said there will be around £5m of exceptional non-cash losses in this financial year, associated with the disposal programme.

At 0936 BST, shares were up 1.3% to 688p.