UK based pub group JD Wetherspoon Plc. reported a loss of 18.9% in its pretax profits late this week due to high labor costs. The firm like most other restaurant chains in UK is battling high employee costs, energy bills and rental costs along with slow but steady move away of younger generations from pubs to clubs. The FTSE 250 relies on sales of alcohol sales to restaurants said that labor costs have recently gone up by 33 million pounds and it accounts for largest part of overall costs. Current financial sales results are likely to remain unchanged. Its’ like for like sales rose by 9.6% between Feb and March due to good weather and total sales went up by 10.9%.
The group which owns and operates around 900 plus pubs across and UK and Ireland said that its like-for-like sales have gone up by 6.3% within past 26 weeks but its founder Tim Martin stated that it is important not to focus too much on a single six month period. He felt that if they had focused more their profits would have been better as they have been a listed company for more than 26–27 years.
The firm’s pretax profit fell to 50.3 million pounds from its last year figure of 62 million pounds. Tim Martin stated that MP’s were right in rejecting the proposal of PM Therese May and conversation of Brexit should be more refocused. He insisted that most problems today are due to excessive consumption, borrowing and too much investment. If people have scaled back it is good and the real focus of Brexit should be on elimination of tariffs over 12,000 items. He stated that currently the firm imports around 6-8 million bottles of Australian and New Zealand and in case tariffs are eliminated they will reduce prices.