Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

JD Wetherspoon sales increase, profits forecast remains weak

The British pub chain has recorded strong sales growth in its second quarter of trading, but the company still expects its pre-tax profits to be lower as input costs continue to increase.

JD Wetherspoon has seen like-for-like sales increase 7.2% and total sales rise by 8.3% in its second quarter of trading, but its profit forecast is down due to a steady increase in input costs, the company said.

The British pub chain remains in a strong financial position, with net debt at the end of this fiscal year expected to be around £10 million higher than the that of last year, according to its latest trading update.

‘Sales growth has been strong since our last update,’ JD Wetherspoon Chairman Tim Martin said. ‘Costs, as previously indicated, are considerably higher than the previous year, especially labour, which has increased by about £30 million in the period, but also in other areas, including interest, utilities, repairs and depreciation.’

‘Profit before tax in the first half is expected to be lower than the same period last year. Our expectations for the full year are unchanged,’ he added.

Weatherspoon to benefit from Brexit

JD Wetherspoon's Chairman is a proponent of Brexit and used the company’s recent trading update to advocate that Britain and his business stand to benefit from the UK leaving the EU without a deal.

Not only does will a no-deal Brexit mean that the UK will avoid paying a £39 billion divorce bill to Brussels, but Britain will also benefit from a free-trade approach by avoiding a deal, he said.

‘This approach also means that the UK, without the agreement of the EU, can end some or all of the protectionist tariffs and quotas that apply on non-EU imports, including rice, oranges, bananas, coffee, wine, children’s clothes and over 12,000 other products - many of which are not produced in this country,’ Martin said.

‘Ending tariffs reduces prices for consumers, without loss of government income, since the proceeds are currently remitted to Brussels,’ he added.

‘A good example of the EU’s protectionism, which is denied by many people, is the recent imposition of tariffs on Cambodian rice, which will inevitably increase prices for businesses and consumers.’

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Trading around Brexit

Find out how Britain’s EU exit continues to affect traders, and discover:

  • How you can trade on Brexit
  • The markets you should be watching
  • Brexit trading strategies for key assets

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.