Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Wetherspoon shares slide as soaring labour and energy costs hit profits

by March 21, 2025
March 21, 2025
Wetherspoon shares slide as soaring labour and energy costs hit profits

JD Wetherspoon saw its shares tumble by 10 per cent after posting lower-than-expected first-half profits, despite solid sales growth across its pub estate. The pub group blamed higher labour and utility costs for the dip in performance, sparking investor concern and a sharp sell-off.

Shares in the company dropped 62p to 535p as operating profits fell to £64.8 million in the six months to January 26, down from £67.7 million a year earlier. Analysts had been expecting an increase.

The impact of a £31 million increase in labour and energy costs was clear, with operating margins narrowing to 6.3 per cent from 6.83 per cent. Pre-tax profits dropped by 8.6 per cent to £32.9 million.

Wetherspoon, famed for its low-cost ales and meals, said total revenue rose by 3.9 per cent to £1.03 billion during the half-year. Like-for-like sales were up 4.8 per cent, with bar sales growing 4.3 per cent and food sales rising 5.4 per cent. Fruit machine revenue, while a smaller part of the business, surged 12.4 per cent.

Despite the pressure on margins, the group declared a 4p interim dividend, payable on 30 May.

Sir Tim Martin, the company’s founder and chairman, remained optimistic, pointing to a continuation of strong trading into the second half. Like-for-like sales rose 5 per cent in the seven weeks to 16 March.

However, Martin warned that the rise in the national living wage and employer national insurance contributions announced in the Autumn Budget would add an estimated £60 million in annual costs—roughly £1,500 per pub per week.

Analysts at Shore Capital described the first-half results as “somewhat disappointing”, noting that they had forecast a £3 million increase in profits, not a decline. However, they added that the resilience in like-for-like sales bodes well for the broader pub sector.

Jefferies analysts struck a more positive tone, noting Wetherspoon’s competitive pricing: “With a low price position relative to other operators, and increased wages affecting the whole industry, we argue that Wetherspoon is relatively better-placed to absorb the wage inflation.”

Founded by Martin in 1979, Wetherspoon reached its peak size in 2015 with 951 pubs. At the end of the latest half-year, the chain operated 796 pubs, having opened two new locations and sold six.

As costs climb and margins tighten, Wetherspoon’s ability to maintain customer loyalty while managing expenses will be key to its longer-term performance.

Read more:
Wetherspoon shares slide as soaring labour and energy costs hit profits

0
FacebookTwitterGoogle +Pinterest
previous post
BBC and rival broadcasters fined £4.2m for colluding on freelance pay
next post
Friday Feature: Redeemer Classical School

You may also like

How are payday loans calculated?

October 21, 2022

How fintech financing is plugging the £2.5 billion...

November 15, 2024

Lord Sugar secures three-year deal to continue The...

March 20, 2025

National Grid to pay households to use less...

January 23, 2023

Brits buying second homes in Spain set to...

January 14, 2025

Entrepreneurs see regular breaks as vital to success,...

February 23, 2023

Renting Tips: The Significance That Macbook Rental Offers

February 23, 2023

Can’t Decide Which Slot Game to Play? –...

August 25, 2022

London student named Fintech scholarship winner

June 26, 2024

An Analysis of the Current Online Casino Landscape...

March 21, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Probe into Biden’s alleged mental decline cover-up deepens with more former White House officials to testify

      July 2, 2025
    • MAGA law group fights to expose how Biden’s DEI agenda may have tainted life-saving organ transplants

      July 2, 2025
    • Israel accepts Trump-led ceasefire plan that could end Gaza war within 60 days

      July 2, 2025
    • Trump to meet with Netanyahu as he pushes for ceasefire between Israel, Gaza

      July 1, 2025
    • Elon Musk claims of ‘pork’ in bill not even possible, Budget chair says

      July 1, 2025
    • Top 10 July 2025 Stock Picks You Shouldn’t Miss

      July 1, 2025

    Categories

    • Business (8,354)
    • Investing (2,093)
    • Politics (15,910)
    • Stocks (3,183)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved