WETHERSPOON ISSUES FOURTH PROFIT WARNING IN SEVEN MONTHS

JD Wetherspoon has issued its fourth profit warning in seven months, citing weaker-than-expected sales and rising costs across labour, food, energy and business rates. The pub chain, which operates 793 pubs across the UK and Ireland, warned that full-year profits would fall short of market expectations when reported in October. Chair Tim Martin stated that the final quarter showed marginally lower sales than anticipated, combined with higher costs in food, labour, repairs, energy and business rates. Shares in the company fell 10% on Wednesday morning following the announcement.

Like-for-like sales rose 4% over the 12 weeks to 19 July, whilst year-to-date sales increased 4.2%. The result fell short of analyst forecasts despite hopes that the FIFA World Cup would boost pub visits and food and drink sales. Other pub chains including Marston's and Fuller's reported positive World Cup impacts, but Wetherspoon did not experience the same uplift. Late kick-off times set by North American hosts made the tournament more challenging for some pub operators compared with previous years.

JD Wetherspoon now expects net debt to reach ££720m at year-end, in line with the previous financial year and down from earlier forecasts of £740m to £760m. The hospitality sector has faced sustained pressure from recent increases in the UK minimum wage and business rates that took effect in April. Energy prices have risen sharply, with food and heating bills climbing significantly across the sector.