Wetherspoons has reported a post-pandemic return to revenue – however warned “ferocious” inflation has hit its enterprise.
The pub chain reported a half-year pre-tax revenue of £4.6m, up from a lack of £26.1m in 2022.
It additionally mentioned gross sales within the seven weeks to 19 March had soared 14.9% on a 12 months earlier and have been up 9.1% on pre-pandemic ranges in 2019.
However, regardless of the upturn, revenue was nonetheless 90% down on the £50.3m scooped up over the identical interval in 2019.
Chairman Tim Martin mentioned the influence of inflation, which leapt to 10.4% on Wednesday, had been “ferocious”, significantly on vitality, meals and labour prices.
But he mentioned he felt the corporate’s future was vibrant – so long as forecasts of inflation coming down this 12 months have been right.
Mr Martin mentioned: “The Bank of England, and other authorities, believe that inflation is on the wane, which will certainly be of great benefit, if correct.
“Having skilled a considerable enchancment in gross sales and income, in comparison with our most up-to-date monetary 12 months, and with a strengthened stability sheet, in contrast each to final 12 months and to the pre-pandemic interval, the corporate is cautiously optimistic about additional progress within the present monetary 12 months and within the years forward.”
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The pro-Brexit pub boss additionally dismissed claims that the UK’s departure from the EU was guilty for latest provide chain points.
“Supply or delivery issues have largely disappeared, for now, and were probably a phenomenon of the stresses induced by the worldwide reopening after the pandemic,” Mr Martin added.
The chain’s interim report additionally revealed it has opened two new pubs over the six months, whereas promoting or closing 11, leaving it with a complete of 843 branches.
It comes amid fears that the pub business could also be hit by the cost-of-living disaster.
Analysts at Stifel mentioned: “We expect 2023 to be a grind for pubs, with companies and consumers facing cost headwinds and a sluggish economy.”
Source: information.sky.com”