Sales go flat at Wetherspoon

JD Wetherspoon is confident despite a sales slowdown during the first quarter

Pubs chain JD Wetherspoon has expressed optimism for its full-year prospects despite a sales slowdown during the first quarter.

Like-for-like sales for the 13 weeks to October 25 increased by 0.3%, down from 1.2% in the first six weeks of the period.

The firm said comparisons with the same period last year were difficult as it involved heavy marketing spending, including the distribution of discount vouchers to "most households in the UK".

Wetherspoon, which said it had made an "encouraging start" to the financial year, opened seven new pubs during the quarter and said it was on track to launch around 40 establishments in the full year.

In a statement the group said: "We remain confident of the company's prospects for the financial year ending July 2010."

Total sales increased by 4.5% in the first quarter.

The company said it expected to start formal negotiations over its £435 million banking facility, which expires at the end of 2010, before the new year.

In September Wetherspoon, which has 735 pubs and employs around 21,000 people, hailed its best ever annual results.

Underlying pre-tax profits rose 13.6% to £66.2 million on sales of £955.1 million in the year to July 26 - a record since the firm was incorporated in 1983.

Wetherspoon has said lessons from the recessions of the 1980s and 1990s had helped it combat tough trading conditions, with a focus on "key ingredients of standard, service, staff training and incentives".