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Pub chain JD Wetherspoon pulled its interim dividend and warned it expected profit to fall short of market expectations as recent sales had fallen 'significantly' following the spread of the Covid-19 virus.
'We now anticipate profits being below market expectations, so long as the current health scare continues. As a result of this uncertainty, it is impossible to provide realistic guidance on our performance in the remainder of the financial year,' JD Wetherspoon said.
In the week to 15 March, sales declined by 4.5% and in the early part of the current week, following the prime minister's Boris Johnson's advice to avoid pubs, sales had declined at a 'significantly' higher rate, the company said.
Most capital projects would be delayed and the interim dividend was cancelled in an effort save costs, it added.
In the 26 weeks ended 26 January 2020, Pre-tax profit rose 15.2% to £51.6m and like-for-like bar sales increased by 4.2%, compared with 5.9% on-year, and like-for-like hotel room sales decreased by 1.3%, compared with an increase of 0.3%.