Wetherspoons still expecting a full-year loss

Pub chain Wetherspoons said on Wednesday that it still expects to make a full-year loss as like-for-like sales have continued to fall despite easing Covid-19 restrictions.

Between 12 April and 16 May, when only outdoor trading was permitted and around 500 pubs were open out of a total 860, like-for-like bar and food sales were down 49%. LFL sales are in comparison with the pre-pandemic levels in 2019.

From 17 May to 4 July, when pubs were fully open, LFL sales were 14.6% lower. Meanwhile, between 17 May and 10 June, before the UEFA Euro 2020 football tournament started, LFL sales were 8.1% lower. From 10 June to 4 July, during the tournament, sales were down 20.8%.

Apart from a limited number of exceptions for individual matches, the chain’s pubs have not televised the Euros.

Wetherspoons said it remains in a "sound" financial position, with net debt at the end of the year expected to be around £833m.

It has already received covenant waivers, up to and including the quarter to July 2021 and plans to enter discussions with its lenders regarding waivers for the next financial year "in due course".

Chairman Tim Martin said: "The company continues to expect to make a loss for the year ending 25 July 2021.

"In a trading update of 19 January 2021, the company's principal 'scenario' estimated sales in the financial year starting 26 July 2021 to be in line with financial year 2019, which remains our current best estimate, on the basis that restrictions are ended, as the government currently intends."

At 0815 BST, the shares were up 0.7% at 1,248.00p.

Richard Hunter, head of markets at Interactive Investor, said: "Wetherspoons' tentative sales recovery has been slightly derailed by its decision to maintain its historic stance on, for the most part, refusing to televise football matches. This has led to some investors questioning the wisdom of its position, as the travel of direction had been improving.

"More positively, the company has been helped by local authorities and landlords, who have been flexible in allowing extra outside seating, while Wetherspoon’s financial position provides breathing space as the slow return to normality approaches."