Wetherspoons: sales jump as the company sells 22 pubs in estate overhaul

Pub group JD Wetherspoon has said 22 of its pubs are still up for sale after already selling 28 earlier this year as part of an overhaul of its estate - and have denied the move was a “money-raising exercise”.

The firm, which has 827 pubs across the UK announced last year 32 pubs were being put up for sale due to a “commercial decision” as it battled higher food and energy costs.

But in its latest trading report, it said it was a “misinterpretation” to suggest the move was down to difficult trading conditions, as it records that sales have lifted 11.5% year on year in the 10 weeks so far of its final trading quarter and are up 12.9% in the financial year to date.

The report says like-for-like sales in the first 10 weeks of the final quarter of the financial year increased by 11% compared to the same period before the pandemic.

The firm insists that "almost all" of the sales are in areas where it has another pub nearby. It said: "In the financial year-to-date, the company has opened three pubs and sold, closed or surrendered to the landlord 28 pubs. 15 of these pubs were leasehold, where the lease had expired, or where the company had exercised a ‘break clause’ in the lease. In respect of 12 of these 15 leasehold pubs, the company had another pub nearby - within a radius of about one mile. As regards the remaining 13 pubs, 11 of these also had another Wetherspoon pub nearby.

“In fact, the disposals have raised relatively modest amounts (although every little helps) and almost all are related to circumstances … where there is another Wetherspoon pub nearby.”

From the sake of the 28 pubs, JD Wetherspoons made a £6.5 million net cash inflow.

Wetherspoon also notched up another double-figure hike in sales and said it was being boosted by easing energy costs.

The firm said profits for the year to 30 July are set to stay in line with market expectations, having improved its outlook in May. It added that lower costs are set to boost its performance in the next financial year.

Wetherspoon chairman Tim Martin said: “As a result of a continued improvement in sales and a slightly reduced expectation for cost increases, for example, energy costs, the company anticipates an improved outcome for the next financial year, and anticipates an outcome for the first half of 2023-24 approximately in line with the second half of 2022-23.”

In May, Wetherspoon predicted record sales for the year to July after sales jumped 12.2% in the three months to April 30 thanks to a bumper Easter and May bank holiday trading.

In its report, the company addressed some of "the urban myths" surrounding the Wetherspoons. For example, the company stated that contrary to what is stated in social media comments, Wetherspoons had recently been recognised as a Top Employer in the UK 2023, for the 18th time. The quality of its food is high, as well as its service standards, which are reflected in various beer guides, and inspections carried out by independent inspectors.