You are here

Prices & Quotes - UK Markets - Wetherspoon (J.D.) (JDW)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Up 913.00p
Change Today:
25.50p
Market Cap:
1,175.49m
Sector:
Travel & Leisure

Wetherspoons plunges to worst loss ever after Covid closures

By Michele Maatouk

Date: Friday 01 Oct 2021

LONDON (ShareCast) - (Sharecast News) - Pub chain JD Wetherspoon said on Friday that it plunged to its biggest full-year loss ever as revenues tumbled after its pubs were forced to shut due to Covid measures.
In the year to 25 July, pre-tax losses widened to 154.7m from 34.1m the year before, with revenues down 38.8% to 772.6m. The company made an operating loss of 105.1m versus a profit of 7.2m the year before.

Wetherspoons noted its pubs were closed for around 19 weeks of the year. In addition, there were regional lockdowns and a "bewildering" range of national and local restrictions, which applied to different areas at different times.

The pub chain said like-for-like sales in the first nine weeks of the current financial year were 8.7% lower than the same weeks in August and September 2019, before the pandemic hit. In the last four weeks of the period, LFL sales were down 6.4%.

Excluding airport pubs, where LFL sales fell 47.3%, sales declined 7.1% in the first nine weeks, and by 4.9% in the last four.

Chairman Tim Martin said: "During the pandemic, the pressure on pub managers and staff has been particularly acute, with a number of nationwide and regional pub closures and reopenings, often with very little warning, each of which resulted in different regulations.

"In the last year, the country moved, in succession, from lockdown, to 'Eat Out to Help Out', to curfews, to firebreaks, to pints with a substantial meal only, to different tier systems and to further lockdowns.

"Pub management teams, and indeed the entire hospitality industry, had an almost impossible burden in trying to communicate often conflicting and arbitrary rules to customers.

"One of the most surprising statistics has been the apparent low level of transmission of the virus in pubs.

"For example, in more than 50 million customer visits, recorded in the second half of 2020, before the introduction of vaccines, Wetherspoon had zero outbreaks of the virus, as defined by the health authorities, among customers.

"Yet there has clearly been a high level of transmission in some other environments, including private parties, weddings, production facilities, university halls of residence and homes.

"Pubs have been at the forefront of business closures during the pandemic, at great cost to the industry - but at even greater cost to the Treasury."

Nevertheless, Martin said Wetherspoons was "cautiously optimistic" about the outcome for the financial year, as long as there are no further restrictions.

At 0925 BST, the shares were down 1% at 1,033p.

Russ Mould, investment director at AJ Bell, said: "Undoubtedly Spoons has gone through a period of unprecedented disruption, which helps explain its record annual loss, but so have many of its independent peers and smaller chains which don't have the same financial heft and scale to ride out the crisis.

"A factor which has made life more difficult for Wetherspoons is its focus on metropolitan centres where usual levels of footfall are still to return.

"Country pubs with lots of outdoor space have definitely fared better and this was very much in evidence in recent updates from Fuller, Smith & Turner and Marston's which own both rural and city and town-based establishments.

"There is limited mention from Wetherspoons of supply chain and staffing problems in its results, beyond some difficulties in attracting people in 'staycation' hotspots. This is somewhat surprising and it may become more of an issue for the business moving forward.

"Sales were down materially on pre-Covid levels in August and September but there are signs of that negative trend easing and ultimately Wetherspoons may benefit from a stronger market position coming out of the pandemic as other operators are forced out of the market."

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

JDW Market Data

Currency UK Pounds
Price 913.00p
Change Today 25.50p
52 Week High 1,404.00p
52 Week Low 811.00p
Volume 40,565
Shares Issued 128.75m
Market Cap 1,175.49m
Beta 0.05

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Price Trend
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Income
market
  1. half market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
Growth
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. empty sector
  4. empty sector
  5. empty sector
Price Chg 6m
market
  1. full market star
  2. empty market
  3. empty market
  4. empty market
  5. empty market
sector
  1. half sector star
  2. empty sector
  3. empty sector
  4. empty sector
  5. empty sector
P/E
Not Available
PEG
market
  1. full market star
  2. full market star
  3. half market star
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. empty sector
  4. empty sector
  5. empty sector
Dividend Yield
Not Available
EPS Growth
Not Available
Operating Margin
market
  1. full market star
  2. half market star
  3. empty market
  4. empty market
  5. empty market
sector
  1. full sector star
  2. full sector star
  3. full sector star
  4. empty sector
  5. empty sector

What The Brokers Say

Strong Buy 6
Buy 1
Neutral 3
Sell 1
Strong Sell 0
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

JDW Dividends

  Latest Previous
  Interim Final
Ex-Div n/a 24-Oct-19
Paid n/a 28-Nov-19
Amount 0.000p 8.00p

Trades for 26-Jan-2022

Time Volume / Share Price
11:54 62 @ 913.00p
11:54 107 @ 914.50p
11:53 25 @ 913.50p
11:50 17 @ 913.00p
11:50 5 @ 913.00p

JDW Key Personnel

CEO John Hutson
Chair Timothy (Tim) Martin
Finance Director Ben Whitley