HEADWINDS

JD Wetherspoon, with a 900plus pub estate including more than 70 outlets north of the Border, yesterday unveiled rising first-quarter revenues, but gave warning over a “significant” jump in its costs over the past 12 months.

Tim Martin, the founder chairman of Wetherspoon who still owns more than 30 per cent of the chain, said same-floorspace sales rose 6 per cent in the 13 weeks to 29 October, as total sales lifted 4.3 per cent. That compared with growth of 3.5 per cent a year earlier.

Martin hailed a “postive” start to the financial year, with sales at a “slightly higher than expected level” since the company last reported on 15 September.

However, he added: “Costs, as many pub and restaurant companies have indicated, have been significantly higher than last year, and further increases are expected in areas including labour, business rates, utilities and sugar taxes.”

Other pub and restaurant groups to flag up rising cost pressures recently have

0 JD Wetherspoon says it plans to open up to 15 new pubs over the full financial year

TIM MARTIN, CHAIRMAN included Mitchells & Butlers and Whitbread.

Despite the cost headwinds, Wetherspoon said that it expected full-year trading to meet expectations and that it intended to open between 10 and 15 new pubs.

In September, Wetherspoon posted an increase of almost 28 per cent in annual pre-tax profit, saying that a wet British summer had contributed to boosted sales. Following the statement, shares in the company, up by more than 40 per cent this year, nudged up 3p to close last night at 1,247p on the London Stock Exchange.

Karl Burns, a drinks analyst with Investec, said: “Management remains cautious on the outlook… with the consumer environment remaining tough, we believe JD Wetherspoon is likely to continue seeing the benefits of trading down within the sector.”

The group, whose Scottish outlets include Edinburgh’s recently opened The Caley Picture House, has invested in pricing, breakfast trading, kitchens and its new app for

“Costs, as many pub and restaurant companies have indicated, have been significantly higher and further increases are expected.”