JD Wetherspoon in profit warning amid higher costs

JD Wetherspoon has issued a profits warning amid slower-than-expected revenue rises.

The pub chain recorded sales growth of four per cent in the three months to July 19, compared with the same period last year.

The business operates 793 managed pubs and 23 franchise sites across the UK.

Tim Martin, founder and chair, said: “Profits for the year are likely to be below market expectations, with marginally lower sales than anticipated in the final quarter, combined with higher costs in the areas of food, labour, repairs, energy and business rates.”

The profit warning adds to concerns that Government-linked policy costs would weigh on the operator’s financial performance.

The chain previously said it was facing extra costs worth £60 million due to wage increases and National Insurance contributions for the year.

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