JDWPF
J D Wetherspoon plc·Consumer Cyclical
9.26
4.870%(+0.43)
Close PriceLast Updated: — ET
52W L: $7.1952W H: $9.67
J D Wetherspoon plc·Consumer Cyclical
JD Wetherspoon PLC (LSE:JDW), the pub chain, issued its third profit warning in four months alongside interim results on Friday, prompting a split in analyst opinion, with Deutsche Bank retaining a 'sell' recommendation and a 460p target price while Panmure Liberum 'holds' at 625p. The shares, down 11% on Friday, were trading at 548p.
Volatile maintenance costs distort a more nuanced picture at the pub chain, but analysts expect downgrades Shares in JD Wetherspoon PLC (LSE:JDW) fell 11% to 555.38p on Friday after interim results revealed a sharp drop in operating profit, though a closer reading of the numbers suggests the headline decline flatters the underlying weakness, with an unexpectedly large repair and maintenance bill doing most of the damage. Operating profit fell 18% to £52.9 million in the 26 weeks to 25 January, against revenue up 5.7% to £1.09 billion.
JD Wetherspoon PLC (LSE:JDW), the pub chain, has warned that full-year profits may come in slightly below market expectations as rising taxes, wages and energy costs weigh on the business. Chairman Tim Martin said increases in national insurance and labour rates would add approximately £60 million to annual costs, with non-commodity energy costs adding a further £7 million and a new packaging levy costing £2.4 million in the current year.
JD Wetherspoon PLC (LSE:JDW) enjoyed faster growth at its pubs over the festive period, but said first-half profits would be down on last year due to higher costs than expected. Executive chairman Tim Martin flagged a £45 million increase in costs during the first 25 weeks of the pub chain's financial year, reflecting higher energy costs, wages, repairs and business rates.