JD Wetherspoon issues warning after ‘higher than anticipated’ costs

Christmas helped boost sales by 8.8 per cent

Pub group JD Wetherspoon has warned of a profit hit after costs surged by £45 million in its first half.

The chain, operating around 800 bars and hotels across the UK, cited higher-than-expected expenses, including rising wages and business rates.

This means first-half profits are "likely to be lower" year-on-year, with the annual trading result also set to come in "slightly" below the previous year if sales continue on the same path.

The alert comes despite a pick-up in like-for-like sales growth over the festive quarter, reaching 6.1 per cent in the 12 weeks to 18 January, up from 4.7 per cent in the prior three months.

Over the key Christmas period, comparable sales jumped 8.8 per cent in the three weeks to 4 January.

Founder and chairman Sir Tim Martin said: “Costs have been higher than anticipated, with energy, wages, repairs and business rates, for example, increasing by £45 million in the first 25 weeks.

“Profits in the first half are likely to be lower than the comparable period in the previous financial year.

“If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in 2024-25.”

Pub group JD Wetherspoon has warned over a hit to profits as it revealed costs surged by £45 million in its first half (PA Wire)

It comes amid hopes in the pub sector of an imminent support package from the Government to help lessen the blow from rising business rates.

Pubs are broadly set to face increases to their business rates payments due to higher property valuations in tax calculations following the autumn budget.

The Labour Government is now expected to announce more financial support measures for the industry following criticism over the upcoming rate increases.

The latest trading performance comes as the British pub chain is preparing to launch its inaugural mainland European establishment at Alicante airport in Spain.

The pub, to be named the Castell de Santa Barbera, is scheduled to open at 11am on 9 February. Situated in the departures area, it aims to offer UK holidaymakers a taste of Britain before their journey home.

Trading seven days a week from 6am to 9pm, it will offer traditional pub food, including English fry-ups and burgers, alongside popular local dishes such as garlic prawns and Spanish omelette.