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JD Wetherspoon Warns on Profits After £45 Million Cost Surge as Shares Fall

A sharp rise in energy, wage, repair and business‑rates bills forced a profit warning, with ministers now signalling targeted pub relief.

Overview

  • The company reported a £45 million increase in operating costs over the first 25 weeks, driven by energy, wages, repairs and business rates.
  • Management said first‑half profits are likely to be lower year on year, and full‑year trading could be slightly below last year if current sales trends continue.
  • Like‑for‑like sales rose 8.8% over the three weeks to 4 January and 4.7% across the 25 weeks to 18 January, reflecting strong festive trading.
  • Shares fell roughly 6–7% in early trading following the update, as analysts flagged ongoing margin pressure for the low‑margin, volume‑led model.
  • Despite cost pressures, Wetherspoon plans to open up to 15 pubs this financial year, including its first mainland Spain site at Alicante Airport, while the Chancellor has promised a targeted support package for pubs in the coming days.