Profits shrink at Wetherspoons as chairman voices Brexit support

National pub and restaurant operator J D Wetherspoon plc saw its profits shrink in the second half of 2015 despite achieving revenue growth, with its chairman pointing to a “tax disparity” between pubs and supermarkets as a major challenge.

For the 26 weeks to January 24, the firm’s revenue rose year on year to £790.3m but its pre-tax profit stood at £36m, a drop of 3.9% against the same period in 2014.

Similarly, Wetherspoons’ operating profit slid by 10.8% to £49.4m, but the pub chain managed to grow its total sales figure by 6.2% to £790.3m.

The company’s chairman, Tim Martin, said of the results: “As previously highlighted, the biggest danger to the pub industry is the continuing tax disparity between supermarkets and pubs.

“There is a growing realisation among politicians, the media and the public that pubs are overtaxed and that a level tax playing field will create more jobs and taxes for the country.”

Speaking further, Mr Martin said he believes the Wetherspoons’ H2 sales comparisons will be “slightly more favourable”, even though staff are due wage increases this April.

He continued: “As a number of pub companies have indicated, the pub and restaurant market is highly competitive, but we are aiming for a reasonable outcome for the financial year, before the impact of the £3.8m property gain referred to today.”

Mr Martin added that, in regards to the ongoing debate over Britain’s European Union membership, he is in favour of leaving the EU as “returning power to the national parliament will increase the level of democracy and accountability.”

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