Pub group JD Wetherspoon has revealed its profits rebounded further over the past year as strong customer demand helped boost revenues.
The company announced on Friday that pre-tax profits jumped 73.5% to £73.9m for the year to July 28, compared with the previous year. It came as revenues grew by 5.7% to £2.04bn, driven by a 7.6% rise in like-for-like sales. A full-year dividend of 12p was also declared.
The improved rate of sales at its pubs was slightly offset by a decrease in its number of pub sites, after the group sold 18 pubs and terminated the lease on a further nine. It also opened two sites.
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Tim Martin, the company's Devon-based chair, said: “Sales continue to improve. In the last nine weeks, to September 29 2024, like-for-like sales increased by 4.9%. The company currently anticipates a reasonable outcome for the current financial year, subject to our future sales performance.”
Charlie Huggins, of Bristol-based investment firm Wealth Club, said the pub group was likely "better placed than its rivals" to deal with the ongoing economic challenges.
“Wetherspoon's commitment to low prices and doing the basics well are helping to keep punters loyal," he said. The backdrop still remains very difficult, with the rise in wages posing a considerable cost headwind for the sector."
He added: "In an environment where the strong seem likely to get stronger, Wetherspoons looks well placed to grow market share and sustain its recent sales momentum."
In July, Sir Tim netted nearly £10m after selling more than one million shares in his company. The outspoken entrepreneur sold 1.36 million ordinary shares at a price of 739p apiece.
The reasons for the sale are unknown but it means Sir Tim reduced his stake in the business to 24.58%.