Wetherspoons blames ‘draconian’ Covid rules for poor financial performance
J.D. Wetherspoon defended a poor financial performance saying pubs had faced an “impossible burden” during the pandemic
Revenue from sales tumbled by -38.4 per cent to £772.6m, the lowest level since 2003, and the company made a record loss of £154.6m after tax. Investors were hit hard, with losses per share jumping by 256 per cent from -35.5 pence per share in 2020 to -119.2 pence in 2021.
In FY20 shareholders were left out of pocket for the first time since the company was set up in 1983.
“In the last year, the country moved, in succession, from lockdown, to ‘Eat Out to Help Out’, to curfews, to firebreaks, to pints with a substantial meal only, to different tier systems and to further lockdowns,” said Tim Martin, the Chairman of J.D. Wetherspoon.
“The biggest threat to the pub industry, and also, inter alia, to restaurants, theatres, cinemas, airlines and travel companies, relates to the precedent set by the government for the use of lockdowns and draconian restrictions, imposed under emergency powers,” he continued, adding that lockdowns are also a “threat to civil society and democracy.”
Mr Martin added that after more than 50m customer visits, recorded in the second half of 2020, Weatherspoon had zero outbreaks fo the virus among customers.
The company said that it is “cautiously optimistic” about the outcome for the current financial year, which runs until July 2022, provided there are no further lockdowns or “onerous” restrictions.
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