Pub group Wetherspoon reports profits rise

Pubs group JD Wetherspoon reported a nine per cent rise in first-half profit today and said its founder and executive chairman…

Pubs group JD Wetherspoon reported a nine per cent rise in first-half profit today and said its founder and executive chairman Mr Tim Martin would step down to non-executive chairman in April.

The company, which runs 633 managed pubs across Britain, posted pre-tax profits of £27.8 million sterling for the six months to January 25th in line with analyst forecasts of £27-28 million.

Turnover rose 11 per cent at £389 million. The firm boosted the interim dividend 10 per cent to 1.33 pence a share.

But Mr Martin, who holds about 16 per cent of the shares is expected to retain a firm grasp on the reins of the business in his new role.

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Shares in Wetherspoon dipped 0.7 per cent to 288 pence in early trade. The stock has gained around 71 per cent in the past 12 months, outperforming the mid-cap index by around 15 per cent.

The firm said operating margins were slightly lower at 9.9 per cent compared to 10 per cent in the previous first-half mainly as a result of slightly higher wages, rent and repairs.