Pub revenues boost JD Wetherspoon

BUMPER sales figures today made JD Wetherspoon the toast of the FTSE 250 index as the pub chain’s recent stock market resurgence continued.

Highlights in its latest trading update included the busiest-ever Saturday over the May Day weekend and a new high for Easter week sales.

Like-for-like revenues for the third quarter to 30 April rose 12.2% on a year earlier, meaning the result for the financial year is on track for a new record.

The company, which trades from 834 pubs, now expects profits to be towards the top of market forecasts, prompting shares to jump another 6% or 48p to 792.5p. The stock is up more than 70% this year at levels last seen in March 2022, although chairman Tim Martin warned that labour, energy and food costs remain a major issue. He told investors: “In order to bear down on inflation, political parties should encourage free enterprise, rather than a reliance on additional regulations.”

The chain’s strong performance came in an otherwise subdued session for the London market as the UK-focused FTSE 250 drifted 33.20 points to 19,243.84 and the FTSE 100 index lost 9.29 points to 7754.80. Melrose Industries was the top flight’s best performing stock after the GKN aerospace manufacturing company announced that trading is materially ahead of expectations, with significant growth in revenue, profit and margin. Shares jumped 3% or 13.5p to 437.9p as Melrose also said it would pause its “Buy, Improve, Sell” strategy in order to focus on maximising the quality and value of its aerospace operations.

Rolls-Royce, which is due to post an update on tomorrow, benefited from Melrose’s guidance as shares lifted 2.6p to 154.25p. On the fallers board, the pressure on the property sector continued as British Land and Land Securities both fell by another 1%.