REG - Wetherspoon (JD) PLC - Preliminary Results
03/10/2025 07:00
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RNS Number : 9106B Wetherspoon (JD) PLC 03 October 2025
3(rd) October 2025
J D WETHERSPOON PLC
PRELIMINARY RESULTS
(For the 52 weeks ended 27(th) July 2025)
FINANCIAL HIGHLIGHTS Var %
Before separately disclosed items
Like-for-like sales (vs FY2024) +5.1%
Revenue £2,127.5m (2024: £2,035.5m) +4.5%
Profit before tax £81.4m (2024: £73.9m) +10.1%
Operating profit £146.4m (2024: £139.5m) +4.9%
Basic earnings per share 50.8p (2024: 48.6p) +4.5%
Free cash inflow per share 47.3p (2024: 26.4p) +79.2%
Full year dividend 12.0p (2024: 12.0p)
.
After separately disclosed items(1)
Profit before tax £89.3m (2024: £60.6m) +47.4%
Operating profit £142.2m (2024: £142.6m) -0.3%
Basic earnings per share 60.0p (2024: 40.5p) +48.1%
(1)Separately disclosed items as disclosed in account note 3.
Commenting on the results, Tim Martin, the Chairman of J D Wetherspoon plc,
said:
"In the last nine weeks, to 28 September 2025, like-for-like sales increased
by 3.2%. The latest 'CGA RSM Hospitality Business Tracker', for August 2025,
said industry like-for-like sales were +0.5%. During this period, Wetherspoon
like-for-like sales were +3.7%. This was the 36th month in a row that
Wetherspoon has outperformed the tracker.
"As previously indicated, increases in national insurance and labour rates
will result in cost increases of approximately £60 million per annum, and
non-commodity energy costs will add £7 million. The recently introduced
'Extended Producer Responsibility' tax, a levy on packaging, referred to in
the table on page 9, will cost £2.4 million in the current year, an increase
of £1.6 million. Cost increases such as these will undoubtedly add to
underlying inflation in the UK economy, although Wetherspoon, as always, will
endeavour to keep price increases to a minimum.
"In appendix 2 and the link within the "Health and pubs" section below, I have
written articles which expand on the tax advantages of supermarkets compared
to pubs and on questionable dietary advice, including advice about alcohol
consumption, which has gained increasing support among academic commentators
and legislators. Sensible policies in both these areas are essential for the
future well-being of the hospitality industry.
"In the last financial year, Wetherspoon, its customers and employees
generated a total of £838 million of taxes for the UK government. The total
tax raised by the government in the last financial year was £858.9 billion.
Therefore, Wetherspoon generated approximately £1 in every £1,000 of all UK
tax revenue. In other words, the country only needs about one thousand
companies like Wetherspoon and no one else would have to pay any taxes at all.
Wetherspoon is confident that it will provide more tax revenue for the
government in the current financial year, while aspiring to increase earnings
per share at the same time.
"The company currently anticipates a reasonable outcome for the financial
year, although government-led cost increases in areas such as energy may have
a bearing on the outcome."
Enquiries:
John Hutson Chief
Executive Officer 01923 477777
Ben Whitley
Finance Director 01923 477777
Eddie Gershon
Company spokesman 07956 392234
Notes to editors
1. J D Wetherspoon owns and operates pubs throughout
the UK. The Company aims to provide customers with good-quality food and
drink, served by well-trained and friendly staff, at reasonable prices. The
pubs are individually designed and the Company aims to maintain them in
excellent condition.
2. Visit our website jdwetherspoon.com
3. The financial information set out in the
announcement does not constitute the company's statutory accounts for the
periods ended 27 July 2025 or 28 July 2024. The financial information for the
period ended 28 July 2024 is derived from the statutory accounts for that year
which have been delivered to the Registrar of Companies. The auditors have
reported on those accounts: their report was unqualified and did not contain
a statement under section 498(2) or (3) of the Companies Act 2006. Statutory
accounts for 2025 will be delivered to the registrar of companies in due
course. This announcement has been prepared solely to provide additional
information to the shareholders of J D Wetherspoon, in order to meet the
requirements of the UK Listing Authority's Disclosure and Transparency Rules.
It should not be relied on by any other party, for other purposes.
Forward-looking statements have been made by the directors in good faith using
information available up until the date that they approved this statement.
Forward-looking statements should be regarded with caution because of inherent
uncertainties in economic trends and business risks.
4. The annual report and financial statements 2025 has
been published on the Company's website on 3 October 2025.
5. The current financial year comprises 52 trading
weeks to 26 July 2026.
6. The next trading update will be issued on 5
November 2025.
CHAIRMAN'S STATEMENT
Financial performance
The company was founded in 1979 - and this is the 42(nd) year since
incorporation in 1983. The table below outlines some key aspects of our
performance during that period
Profit/(loss) Earnings per
Total number Total sales before tax and separately disclosed items share before Free cash flow
Financial year of pubs £000 £000 separately disclosed items Free cash flow per share
(sites) pence(3) £000 pence(2,3)
1984 1 818 (7) -
1985 2 1,890 185 0.2
1986 2 2,197 219 0.2
1987 5 3,357 382 0.3
1988 6 3,709 248 0.3
1989 9 5,584 789 0.6 915 0.4
1990 19 7,047 603 0.4 732 0.4
1991 31 13,192 1,098 0.8 1,236 0.6
1992 45 21,380 2,020 1.9 3,563 2.1
1993 67 30,800 4,171 3.3 5,079 3.9
1994 87 46,600 6,477 3.6 5,837 3.6
1995 110 68,536 9,713 4.9 13,495 7.4
1996 146 100,480 15,200 7.8 20,968 11.2
1997 194 139,444 17,566 8.7 28,027 14.4
1998 252 188,515 20,165 9.9 28,448 14.5
1999 327 269,699 26,214 12.9 40,088 20.3
2000 428 369,628 36,052 11.8 49,296 24.2
2001 522 483,968 44,317 14.2 61,197 29.1
2002 608 601,295 53,568 16.6 71,370 33.5
2003 635 730,913 56,139 17.0 83,097 38.8
2004 643 787,126 54,074 17.7 73,477 36.7
2005(4) 655 809,861 47,177 16.9 68,774 37.1
2006 657 847,516 58,388 24.1 69,712 42.1
2007 671 888,473 62,024 28.1 52,379 35.6
2008 694 907,500 58,228 27.6 71,411 50.6
2009 731 955,119 66,155 32.6 99,494 71.7
2010 775 996,327 71,015 36.0 71,344 52.9
2011 823 1,072,014 66,781 34.1 78,818 57.7
2012 860 1,197,129 72,363 39.8 91,542 70.4
2013 886 1,280,929 76,943 44.8 65,349 51.8
2014 927 1,409,333 79,362 47.0 92,850 74.1
2015 951 1,513,923 77,798 47.0 109,778 89.8
2016 926 1,595,197 80,610 48.3 90,485 76.7
2017 895 1,660,750 102,830 69.2 107,936 97.0
2018 883 1,693,818 107,249 79.2 93,357 88.4
2019 879 1,818,793 102,459 75.5 96,998 92.0
2020(6) 872 1,262,048 (44,687) (35.5) (58,852) (54.2)
2021 861 772,555 (154,676) (119.2) (83,284) (67.8)
2022 852 1,740,477 (30,448) (19.6) 21,922 17.3
2023 825 1,925,044 42,559 26.4 271,095 211.4
2024 800 2,035,500 73,875 46.8 33,037 26.4
2025 794 2,127,524 81,445 48.1 56,642 47.3
Notes
Adjustments to statutory numbers
1. Where appropriate, the earnings/losses per share (EPS), as disclosed in the
statutory accounts, have been recalculated to take account of share splits,the
issue of new shares and capitalisation issues.
2. Free cash flow per share excludes dividends paid which were included in the
free cash flow calculations in the annual report and accounts for the years
1995-2000.
3. EPS and free cash flow per share are calculated using dilutive shares in
issue.
4. Before 2005, the accounts were prepared under UKGAAP. All accounts from
2005 to date have been prepared under IFRS.
5. Apart from the items in notes 1-4, all numbers are as reported in each
year's published accounts.
6. From financial year 2020 data is based on post-IFRS 16 numbers following
the transition from IAS17 to IFRS 16.
General
Some of the sentences, paragraphs and sections of the following statement use
the same wording or format as previous years, updated for new information,
where necessary.
Background
The hospitality industry has struggled in the aftermath of the pandemic.
Wetherspoon sales in FY25 (financial year 2025) were £2,128 million, a 17%
increase (£309 million) compared to the pre-pandemic year of FY19.
The company had 85 fewer pubs at the FY25 period end and sales per pub were
29.0% above FY19, higher than the level of CPI inflation. However, costs of
energy (+57.8%) and wages (+34.5%), which have a heavy influence on all other
input prices, rose more than sales, so that profits and earnings, while having
made a strong recovery, are still below pre-pandemic levels.
A main lesson of the economic problems of the 1970s has been unlearnt in
recent years - that is, if energy prices go up, as they did in the 1970s,
inflation results, and almost everyone is poorer, except for those companies
and countries which produce energy.
In this connection, Wetherspoon has just been informed that the
"non-commodity" elements of our electricity charges (in effect, taxes or
"levies" which are added to electricity bills) will rise by an annualised £7
million, starting this month, so that the non-commodity element will be
approximately 62% of our overall electricity costs.
The increased cost is partly due to two new levies: one is a nuclear power
subsidy, the other is a subsidy, as we understand it, for energy intensive
industries.
As indicated, this substantial increase in levies, applicable to most
consumers and businesses, will inevitably add to inflation in coming months.
A particular concern of Wetherspoon is the absence of public debate about
energy policy.
It is clear that reliance on renewable energy will require "standby" energy
resources approximately equivalent to the total UK fossil fuel resources from
power stations today, for periods when sun and wind power is unavailable.
The proposed solution is to replace the UK's fossil fuel resources with
nuclear energy.
This will require a colossal amount of resources. For example, we understand
that France, which has successfully implemented a nuclear strategy, has 56
nuclear reactors, whereas the UK has only 9, several of which are due to be
decommissioned in 2028.
This volte face will require vast financial resources and is based on the
assumption that nuclear energy is "cleaner".
The principal area for public debate is twofold: is nuclear energy really
cleaner and what is the financial cost of transition.
It is particularly noteworthy that democracies like Italy, Germany and Taiwan
have discontinued nuclear power, mainly on safety grounds - after long debate,
years of preparation and many billions of decommissioning costs.
In addition, most democracies, including, for example, Ireland, Australia,
Austria and Denmark appear to have no intention of adopting nuclear power.
Indeed, even Greenpeace, passionate advocates of renewable energy, are
adamantly opposed to nuclear power.
It is clearly high time for the UK to engage in a proper debate on these vexed
issues, rather than the current tit for tat political discourse, financed,
inadequately and temporarily, by huge stealth taxes.
Trading summary
Total sales in FY25 were, as indicated above, £2,128 million, an increase of
4.5%, compared to FY24. LFL sales increased by 5.1% - bar sales by 5.1%, food
by 5.0%, and slot/fruit machines by 11.0%. Room sales for hotels declined by
11.9%, following the removal of third-party, online booking agents in the UK,
which charged high levels of commission.
Operating profit, before separately disclosed items, was £146.4 million
(2024: £139.5 million). The operating margin, before separately disclosed
items, was 6.88% (2024: 6.85%).
Profit, before tax and separately disclosed items, was £81.4 million (2024:
£73.9 million).
Property
Three Wetherspoon managed pubs opened in the year and nine were sold. The
disposals gave rise to a cash inflow of £8.1 million. There was a loss on
disposal of £0.9 million, recognised in the income statement, relating to
those pubs.
At the end of the period 794 managed pubs were trading. The company intends to
open approximately 15 managed pubs in the current financial year, excluding
the franchised pubs referenced below.
Franchises
Five franchised pubs opened in the year, bringing the total number to eight.
The company anticipates opening approximately 15 franchised pubs in the
current financial year. Operationally, franchised pubs have performed
extremely well, with very high standards and encouraging sales levels.
Earnings
Earnings per share, before separately disclosed items, assisted by share
repurchases (please see "Dividends and return of capital", below), were 50.8p
(2024: 48.6p).
Capital investment
Total capital investment was £117.0 million (2024: £116.5 million). £24.1
million was invested in new pubs and pub extensions (2024: £11.9 million),
£62.5 million in existing pubs (2024 £76.4 million), £11.6 million in
business and IT projects (2024 £6.2 million) and £18.7 million in freehold
reversions of properties where Wetherspoon was the tenant (2024: £21.9
million).
Separately disclosed items
Overall, there was a pre-tax 'separately disclosed gain' of £7.9 million
(2024: £13.3 million loss). This was made up of the following credits:
• £4.9 million in respect of impairment reversals and charges;
• £12.7 million relating to the amortisation of the hedge reserve to the
P&L (please see below);
In addition, there were two charges:
• £6.5 million of exceptional operating costs relating to property
disposals, legal fees and undercharged depreciation in a prior year;
• £3.3 million relating to the fair value movement of current interest-rate
swaps.
The full details of separately disclosed items are listed in note 3 of the
accounts.
As regards the £12.7 million credit, the company cancelled some interest rate
swaps in 2023 but, even though the cash was received immediately (£169
million in total), accounting rules require the benefit to be recognised in
the income statement over the life of the original instrument.
Operating profit, after separately disclosed items, was £142.2 million (2024:
£142.6 million).
Profit, before tax, after separately disclosed items, was £89.3 million
(2024: £60.6 million).
Earnings per share, after separately disclosed items, were 60.0p (2024:
40.5p).
The tax effect on separately disclosed items is a credit of £2.5 million
(2024: credit of £3.5 million).
Net book value
The net book value of the company's assets in the balance sheet at the end of
the period was £1.41 billion, which is approximately seven times the
company's EBITDA in the last 12 months of £203.3 million. The company's
freehold assets have not been revalued for over 25 years.
Free cash flow
As previously indicated, it is anticipated that free cash flow ("FCF"), which
has often been higher than profit before tax will, in future, approximately
correspond to profit after tax.
The main reasons for the reduction in the ratio of FCF to profit before tax
are:
- corporation tax has increased from 19 to 25 per cent between 2019 and today,
which will reduce FCF.
- capital reinvestment in existing pubs, which is deducted in calculating FCF,
averaged 3.1% of sales in the five years up to 2019. It is estimated that
reinvestment will increase to 3.7% of sales, as a result of an increase in
expenditure in areas such as IT, staff rooms, updated kitchen equipment and
heating and cooling systems.
- depreciation (which is deducted from profit before tax, but added back to
FCF) has decreased as a percentage of sales since some older leasehold pubs,
which are still in use, and some older assets, have been fully depreciated. In
addition, there are likely to be fewer new pubs, which have higher levels of
depreciation and higher levels of capital allowances. Depreciation in the five
years to 2019 averaged 4.4% of sales and it is estimated that it will average
3.0% in the future.
FCF, after capital payments of £74.1 million for existing pubs (2024: £82.6
million), £22.8 million for share purchases for employees (2024: £12.7
million) and payments of tax and interest, increased by £23.7 million to
£56.7 million (2024: £33.0 million). FCF per share was 47.4p (2024: 26.4p).
Balance sheet
Net debt, excluding IFRS-16 lease debt, was £724.3 million at the period end
(28 July 2024: £660.0 million).
On an IFRS-16 basis, which includes notional debt from leases, debt increased
from £1.07 billion to £1.13 billion at the end of FY25.
Dividends and return of capital
The board proposes, subject to shareholders' consent at the annual general
meeting, to pay a final dividend of 8.0p (2024: 12.0p) per share, on 27
November 2025, to those shareholders on the register on 24 October 2025,
resulting in a total dividend for the year of 12.0p per share (2024: 12.0p).
The dividend is covered 4.0 times (2024: 3.9 times).
During the period, 10,579,081 shares (8.6% of the start-of-year share capital)
were purchased by the company for cancellation, at a cost of £66.8 million,
including stamp duty and fees, representing an average cost per share of
631.2p.
Financing
The company has total available finance facilities of £938.0 million.
On 6 June 2024, the company signed a new four-year £840.0 million banking
agreement on attractive terms. A total of £800 million was extended by a
further year in June 2025.
The company has the following interest rates swaps in place:
Swap Value Start Date End Date Weighted Average %
£400m 06-Feb-25 06-Feb-28 4.23%
£200m 06-Feb-25 06-Feb-28 4.14%
£500m 07-Feb-28 06-Feb-30 4.00%
The total cost of the company's debt, in the period under review, including
the banks' margin was 6.57% (28 July 2024: 7.05%).
Taxation
The total tax charge for the period was £23.9 million in respect of profits
before separately disclosed items (2024: £15.4 million).
The total tax charge comprises two parts. The first part is the actual current
tax (the 'cash' tax) which this year is £11.8 million (2024: £2.9 million).
The second part is deferred tax (the 'accounting' tax), which is tax payable
in future periods that must be recognised in the current period for accounting
purposes. The accounting tax charge for the period is £12.1 million (2024:
£12.5 million).
Health and pubs
Last year, Wetherspoon criticised the tendency of legislators to kowtow to
ill-thought-out campaigns from academics and others, by threatening to reduce
opening hours and glass sizes for pubs. As we pointed out then, since
licensing hours were liberalised about twenty years ago, pubs have lost
approximately half their trade to supermarkets, and reducing glass sizes, as a
matter of common sense, is unlikely to lead to lower alcohol consumption. The
predilection for over-regulation of pubs is driving people to the off-trade,
and is substituting supervised consumption in pubs for unsupervised
consumption in homes, at parties, in parks and so on.
There has been a recent increase in pseudoscientific publications, espousing
the view that "even one drink is bad for you". This argument seems to ignore
the reality that the longest-living nations all seem to allow alcohol
consumption. I have written an article on the broad subject of ill-founded
dietary advice which can be found in the link below.
Extract-from-Wetherspoon-News-Summer-Autumn-2025
(https://www.jdwetherspoon.com/wp-content/uploads/2025/10/Appendix-1-Extract-from-Wetherspoon-News-Summer-Autumn-2025-website.pdf)
Scottish business rates
As we did last year, in appendix 1 below, we explain how business rates for
Scottish pubs, theoretically based on property values, have, by a strange
process of legal reasoning, become a de facto sales tax, based on the sales
performance of the occupier.
VAT equality
As we have said in previous years, Wetherspoon, along with many in the
hospitality industry, has been a strong advocate of tax equality between the
off-trade, which consists mainly of supermarkets, and the on-trade, consisting
mainly of pubs, clubs and restaurants.
Pubs, clubs and restaurants pay 20% VAT in respect of food sales but
supermarkets pay nothing. Supermarkets also pay far less business rates per
pint or meal than pubs.
It does not make economic sense for the tax system to favour mainly
out-of-town supermarkets over mainly high-street pubs.
This imbalance is a major factor in town centre and high street dereliction.
I have recently written an article on this subject, which was issued as an
"RNS" announcement, and which was reproduced in a number of trade and national
newspapers - it can be found in appendix 2.
How pubs contribute to the economy
As previously stated, Wetherspoon and other pub and restaurant companies have
always generated far more in taxes than is earned in profit.
In the financial year ended 27 July 2025, the company, its staff and customers
generated taxes of £837.6 million. The table below shows the £6.4 billion of
tax revenue generated in the last ten years.
Each pub, on average, generated £7.5 million in tax during that period. The
tax generated by the company, during the period, equates to approximately 27
times the company's profits after tax.
Republic of Ireland pubs generated approximately €11.3 million of Irish tax
contributions during the year, of which €5.8 million related to VAT, €3.0
million alcohol duty and €2.1 million employment taxes.
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 TOTAL
£m £m £m £m £m £m £m £m £m £m £m
VAT 411.2 394.7 372.3 287.7 93.8 244.3 357.9 332.8 323.4 311.7 3,129.8
Alcohol duty 166.5 163.7 166.1 158.6 70.6 124.2 174.4 175.9 167.2 164.4 1,531.6
PAYE and NIC 153.6 134.7 124.0 141.9 101.5 106.6 121.4 109.2 96.2 95.1 1,184.2
Business rates 42.2 41.3 49.9 50.3 1.5 39.5 57.3 55.6 53.0 50.2 440.8
Corporation tax 21.9 9.9 12.2 1.5 - 21.5 19.9 26.1 20.7 19.9 153.6
Fruit/slot Machine duty 18.2 16.7 15.7 12.8 4.3 9.0 11.6 10.5 10.5 11.0 120.3
Climate change levies 13.9 10.2 11.1 9.7 7.9 10.0 9.6 9.2 9.7 8.7 100.0
Stamp duty 1.2 1.1 0.9 2.7 1.8 4.9 3.7 1.2 5.1 2.6 25.2
Sugar tax 2.7 2.6 3.1 2.7 1.3 2.0 2.9 0.8 - - 18.1
Fuel duty 1.9 2.0 1.9 1.9 1.1 1.7 2.2 2.1 2.1 2.1 19.0
Apprenticeship levy 2.7 2.5 2.5 2.2 1.9 1.2 1.3 1.7 0.6 - 16.6
Carbon tax - - - - - - 1.9 3.0 3.4 3.6 11.9
Premise licence and TV licences 0.5 0.5 0.5 0.5 0.5 1.1 0.8 0.7 0.8 0.8 6.7
Landfill tax - - - - - - - 1.7 2.5 2.2 6.4
Insurance tax 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 2.0
Extended Producer Responsibility (EPR) 0.8 0.8
- - - - - - - - -
Furlough tax - - - -4.4 -213.0 -124.1 - - - - -341.5
Eat out to help out - - - - -23.2 - - - - - -23.2
Local government grants - - - -1.4 -11.1 - - - - - -12.5
TOTAL TAX 837.6 780.2 760.4 666.9 39.1 442.1 765.1 730.7 695.3 672.4 6,389.8
TAX PER PUB (£m) 1.05 0.98 0.92 0.78 0.05 0.51 0.87 0.83 0.78 0.71 7.48
TAX AS % OF NET SALES 39.4% 38.3% 39.5% 38.3% 5.1% 35.0% 42.1% 43.1% 41.9% 42.1% 36.5%
Profit/Loss after tax 57.6 58.5 33.8 -24.9 -146.5 -38.5 79.6 83.6 76.9 56.9 237.6
Note - this table is prepared on a cash basis, is UK only and post IFRS-16
from FY20 onward.
Corporate Governance
Wetherspoon has been a strong critic of the composition of the boards of
UK-quoted companies.
As we said last year, directors of UK PLCs have, on average, relatively little
experience of the companies they govern, due to the "nine-year rule", which
limits their tenure, combined with the fact that most directors are part-time,
and have never worked for the company in question, on a full-time basis.
In addition, those responsible for overseeing governance, among institutional
shareholders, are often responsible for several hundred companies each, making
genuine board engagement impossible, and thereby necessitating a "tick-box"
approach, which is the antithesis of good governance.
The combination of arbitrary rules, the preponderance of part-time directors
and overloaded institutional governance departments means that bureaucracy and
virtue-signalling, rather than innovation and efficiency, dominate most UK PLC
boardrooms.
In appendix 3 below, further details are provided on this issue from our FY23
annual report.
From a cursory glance at the annual reports of the largest American PLCs,
probably the most successful companies in business history, it would appear
that the chairmen of the FANGs (Facebook, Amazon, Netflix, Google etc) all
contravene the UK's nine-year rule. All governments say they want to attract
investment, but the current rules are clearly Kryptonite to world-class
companies such as these.
Further progress
In the period, Wetherspoon awarded £45.0 million of bonuses and free shares
to employees, of which 98.9% was paid to staff below board level and 86.3% was
paid to staff working in pubs. Approximately 25,400 of 42,700 employees are
shareholders in the company.
The average length of service of a pub manager increased to 15.4 years, and of
a kitchen manager to 11.5 years.
Wetherspoon has been recognised by the Top Employers Institute as a 'Top
Employer United Kingdom 2025'. It is the 20th time that Wetherspoon has been
certified by the Top Employers Institute.
276 pubs feature in CAMRA's 2026 Good Beer Guide, an increase of 25 compared
to last year. 49 Wetherspoon pubs have been in the guide for 10 consecutive
years or more.
In November 2024, Wetherspoon was voted the Best Airport Retailer for Food
& Beverages at the British Travel Awards.
The company has an extensive training programme for its employees, including
'kitchen of excellence' training, as well as cellar, dispense and coffee
academy training.
Wetherspoon has recently been included in the Financial Times 'FT - Statista
Leaders 2025' report, which highlights Europe's leading companies in diversity
and inclusion.
The company's UK nominated charity is Young Lives vs. Cancer (previously CLIC
Sargent). It supports children and young people with cancer. Since our
partnership began in 2002, Wetherspoon has raised over £25 million for the
charity, thanks to the generosity and efforts of our customers and employees.
752 of the company's washrooms have been awarded the highest platinum or
diamond statuses at the National Loo of the Year awards.
In January 2024, the company was awarded the highest rating by the Sustainable
Restaurant Association - the world's largest accreditation scheme for pubs and
restaurants.
Wetherspoon came second in the 2024 'Out to Lunch' league table, compiled by
the Soil Association. Restaurants and pubs are judged and scored on a range of
criteria: family friendliness, healthy options, food quality, value,
sustainability and ingredients' provenance.
Wetherspoon is seeking to extend the appeal of its menu. For example, 45% of
the dishes on the menu that is available in the majority of pubs are
vegetarian, 13% are vegan and 24% are under 500 calories.
Cod and haddock are sourced from fisheries which have been certified as
well-managed and sustainable fisheries.
Wetherspoon uses 100% UK and Irish beef on its food menu, traceable from farm
to fork.
100% of the eggs served on the menu are free range. All shell eggs are
certified with the British Lion quality mark and are RSPCA assured, ensuring
the highest standards of animal welfare.
Guinness has a 'Quality Accreditation Programme'. Independent assessors review
17 aspects of quality. All Wetherspoon pubs achieved their Guinness
accreditation.
Since 2008, Wetherspoon has invited brewers from overseas to feature their
ales in its real-ale festivals. To date, these brewers have contributed 241
ales, from 150 breweries in 31 countries. In addition, the company works with
over 230 UK brewers, mostly small or "micro" brewers.
Since 1999, Wetherspoon has worked with independent real-ale quality assessor
Cask Marque to gauge the quality of ale being served in its pubs. Cask Marque
carries out an 11-point audit covering stock rotation, beer line cleanliness,
equipment maintenance, glass washing cleanliness and hygiene. A star rating is
awarded from 1 to 5, with a target of 4 to 5 stars for all pubs. Cask Marque
state that 66% of UK pubs achieve 4 or 5 stars. 100% of Wetherspoon pubs have
achieved 4 or 5 stars.
Sustainability, recycling and the environment
As stated last year, wherever possible, Wetherspoon separates waste into nine
streams: food waste; glass; tins/cans; cooking oil; paper/cardboard; plastic;
waste electrical and electronic equipment (WEEE); general waste and from
December 2024 - Tetra Pak cartons.
Wetherspoon's national distribution centre, at Daventry, also includes an
in-house 24-hour recycling centre, with a dedicated workforce and specialist
equipment. When making deliveries to pubs, lorries collect recycling, used
cooking oil and reusable items for return to the recycling centre - so
reducing the company's carbon footprint from reduced road miles.
9,665 tonnes of recyclable waste were processed this year at our national
recycling centre. In addition, food waste is sent for 'anaerobic digestion'
and used cooking oil is converted to biodiesel for agricultural use.
Wetherspoon increased the proportion of waste recycled by over 4% during the
year, with 67% of all pub waste now being recycled. This was also the first
year since the beginning of our partnership with Veolia in 2018 that 100% of
waste collected from Wetherspoon pubs was diverted from landfill. Our progress
in this area was recognised at the 2025 Lets Recycle Awards for Excellence in
Recycling and Waste Management, where we received a Highly Commended award for
our resource and waste management partnership with DHL Envirosolutions and
Veolia.
Automated meter readers for electricity and gas, which provide half hourly
consumption data, are installed in the majority of pubs to facilitate energy
consumption reporting. We have nearly completed a rollout of 100 automated
meter readers for water in our highest consuming sites.
Bonuses and free shares
As indicated above, Wetherspoon has, for many years (see table below),
operated a bonus and share scheme for all employees. Before the pandemic,
these awards increased, as earnings increased for shareholders.
Financial year Bonus and free shares Profit/(loss) Bonus and free shares as % of profits
after tax(1)
£m £m
2008 16 36 45%
2009 21 45 45%
2010 23 51 44%
2011 23 52 43%
2012 24 57 42%
2013 29 65 44%
2014 29 59 50%
2015 31 57 53%
2016 33 57 58%
2017 44 77 57%
2018 43 84 51%
2019 46 80 58%
2020 33 (39) -
2021 23 (146) -
2022 30 (25) -
2023 36 34 106%
2024 49 59 83%
2025 45 58 78%
Total(2) 492 871 56.5%
(1)(IFRS-16 was implemented in the year ending 26 July 2020 (FY20). From this
period all profit numbers in the above table are on a Post-IFRS-16 basis.
Prior to this date all profit numbers are on a Pre-IFRS-16 basis.
(2) Excludes 2020, 2021 and 2022.
Length of service
The table below provides details of the improved retention levels of pub and
kitchen managers, key areas for any pub company, in the last decade.
Financial year Average pub manager length of service Average kitchen manager length of service
(Years) (Years)
2016 11 7.1
2017 11.1 8
2018 12 8.1
2019 12.2 8.1
2020 12.9 9.1
2021 13.6 9.6
2022 13.9 10.4
2023 14.3 10.6
2024 14.9 10.9
2025 15.4 11.5
Food hygiene ratings
Wetherspoon has always emphasised the importance of hygiene standards.
We now have 740 pubs, including franchises, rated on the Food Standards
Agency's website (see table below). The average score is 4.99, with 98.8% of
the pubs achieving a top rating of five stars. We believe this to be the
highest average rating for any substantial pub company.
In the separate Scottish scheme, which records either a 'pass' or a 'fail',
all of our 56 pubs have passed.
Financial Year Total pubs scored Average rating Pubs with highest rating %
2014 824 4.91 92.0
2015 858 4.93 94.1
2016 836 4.89 91.7
2017 818 4.89 91.8
2018 807 4.97 97.3
2019 799 4.97 97.4
2020 781 4.96 97.0
2021 787 4.97 98.4
2022 775 4.98 98.6
2023 753 4.99 99.2
2024 735 4.99 99.6
2025 740 4.99 98.8
Property litigation
Some years ago, Wetherspoon took successful legal action for fraud against its
own property advisors Van de Berg, who were found, by the court, to have
diverted freehold properties to third parties, leaving Wetherspoon with an
inferior leasehold interest.
Following the Van de Berg case, Wetherspoon instigated further legal actions
against a number of individuals and companies who had freehold properties
introduced to them by Van de Berg. Liability was denied by all. The cases were
contested and settled out of court. Details can be found in appendix 4 below.
Press corrections
As previously reported, in the febrile atmosphere of the first UK lockdown, a
number of harmful inaccuracies were published in the press. A large number
of
corrections and apologies were received, as a result of legal representations
by Wetherspoon.
In order to try to set the record straight, a special edition of Wetherspoon
News was published, which includes details of the apologies and corrections.
It can be found on the company's website:
(https://www.jdwetherspoon.com/wp-content/uploads/2024/08/Does-Truth-Matter_.pdf
(https://www.jdwetherspoon.com/wp-content/uploads/2024/08/Does-Truth-Matter_.pdf)
).
Pubwatch
As Wetherspoon has previously highlighted, Pubwatch is a forum which has
improved wider town and city environments, by bringing together pubs, local
authorities and the police, in a concerted way, to encourage good behaviour
and to reduce antisocial activity.
Wetherspoon pubs are members of 534 schemes country wide.
The company also helps to fund National Pubwatch, founded in 1997 by licensees
Bill Stone and Raoul De Vaux, along with police superintendent Malcolm
Eidmans. This is the umbrella organisation which helps to set up, co-ordinate
and support local schemes.
It is our experience that in some towns and cities, where the authorities have
struggled to control antisocial behaviour, the setting up of a Pubwatch has
been instrumental in improving safety and security - of not only licensed
premises, but also the town and city in general, as well as assisting the
police in bringing down crime.
Conversely, we have found, in several towns, including some towns on the
outskirts of London, that the absence of an effective Pubwatch scheme results
in higher incidents of crime, disorder and antisocial behaviour.
In our view, Pubwatch is integral to making towns and cities a safe
environment for everyone.
World Health Organisation report
The company continues to be concerned about the possibility of further
lockdowns and about the efficacy of the government enquiry into the pandemic,
which will not be concluded for several years.
In contrast, the World Health Organisation (WHO) reported on its findings in
2022.
Professor Francois Balloux, director of the UCL Genetics Institute, writing in
The Guardian, and Professor Robert Dingwall, of Trent University, writing in
the Telegraph, provide useful synopses of the WHO report:
(see pages 54-56 of Wetherspoon News
https://www.jdwetherspoon.com/wp-content/uploads/2024/04/Wetherspoon-News-autumn-2022.pdf
(https://www.jdwetherspoon.com/wp-content/uploads/2024/04/Wetherspoon-News-autumn-2022.pdf)
)
The conclusion of Professor Balloux, broadly echoed by Professor Dingwall,
based on an analysis by the World Health Organisation of the pandemic, is that
Sweden (which did not lock down), had a Covid-19 fatality rate "of about half
the UK's" and that "the worst performer, by some margin, is Peru, despite
enforcing the harshest, longest lockdown."
Professor Balloux concludes that "the strength of mitigation measures does not
seem to be a particularly strong indicator of excess deaths."
Wetherspoon board changes
Harry Morley is retiring from the board at this year's AGM after 9 years as a
non-executive director of the company and as chair of the audit committee.
The company is grateful to Harry for the experience he has brought to the
board and for his dedicated and conscientious work over the years.
The company intends to seek a replacement for Harry in due course.
Current trading and outlook
In the last nine weeks, to 28 September 2025, like-for-like sales increased by
3.2%. The latest 'CGA RSM Hospitality Business Tracker', for August 2025, said
industry like-for-like sales were +0.5%. During this period, Wetherspoon
like-for-like sales were +3.7%. This was the 36th month in a row that
Wetherspoon has outperformed the tracker.
As previously indicated, increases in national insurance and labour rates will
result in cost increases of approximately £60 million per annum, and
non-commodity energy costs will add £7 million. The recently introduced
'Extended Producer Responsibility' tax, a levy on packaging, referred to in
the table on page 9, will cost £2.4 million in the current year, an increase
of £1.6 million. Cost increases such as these will undoubtedly add to
underlying inflation in the UK economy, although Wetherspoon, as always, will
endeavour to keep price increases to a minimum.
In appendix 2 and the link within the "Health and pubs" section above, I have
written articles which expand on the tax advantages of supermarkets compared
to pubs and on questionable dietary advice, including advice about alcohol
consumption, which has gained increasing support among academic commentators
and legislators. Sensible policies in both these areas are essential for the
future well-being of the hospitality industry.
In the last financial year, Wetherspoon, its customers and employees generated
a total of £838 million of taxes for the UK government. The total tax raised
by the government in the last financial year was £858.9 billion. Therefore,
Wetherspoon generated approximately £1 in every £1,000 of all UK tax
revenue. In other words, the country only needs about one thousand companies
like Wetherspoon and no one else would have to pay any taxes at all.
Wetherspoon is confident that it will provide more tax revenue for the
government in the current financial year, while aspiring to increase earnings
per share at the same time.
The company currently anticipates a reasonable outcome for the financial year,
although government-led cost increases in areas such as energy may have a
bearing on the outcome.
Tim Martin
Chairman
2 October 2025
APPENDIX 1 Extract from Wetherspoon FY23 Annual report, Chairman's Statement
Business rates transmogrified to a sales tax
Business rates are supposed to be based on the value of the building, rather
than the level of trade of the tenant. This should mean that the rateable
value per square foot is approximately the same for comparable pubs in similar
locations. However, as a result of the valuation approach adopted by the
government "Assessor" in Scotland, Wetherspoon often pays far higher rates per
square foot than its competitors.
This is highlighted (in the tables below) by assessments for the Omni Centre,
a modern leisure complex in central Edinburgh, where Wetherspoon has been
assessed at more than double the rate per square foot of the average of its
competitors, and for The Centre in Livingston (West Lothian), a modern
shopping centre, where a similar anomaly applies.
As a result of applying valuation practice from another era, which assumed
that pubs charged approximately the same prices, the raison d'être of the
rating system - that rates are based on property values, not the tenant's
trade - has been undermined.
Similar issues are evident in Galashiels, Arbroath, Anniesland - and, indeed,
at most Wetherspoon pubs in Scotland. In effect, the application of the rating
system in Scotland discriminates against businesses like Wetherspoon, which
have lower prices, and encourages businesses to charge higher prices. As a
result, consumers are likely to pay higher prices, which cannot be the intent
of rating legislation.
Omni Centre, Edinburgh The Centre, Livingston
Occupier Name Rateable Value (RV) Customer Area (ft²) Rates per square foot Occupier Name Rateable Value (RV) Customer Area (ft²) Rates per square foot
Playfair (JDW) £218,750 2,756 £79.37 The Newyearfield (JDW) £165,750 4,090 £40.53
Unit 9 (vacant) £48,900 1,053 £46.44 Paraffin Lamp £52,200 2,077 £25.13
Unit 7 (vacant) £81,800 2,283 £35.83 Wagamama £67,600 2,096 £32.25
Frankie & Benny's £119,500 2,731 £43.76 Nando's £80,700 2,196 £36.75
Nando's £122,750 2,804 £43.78 Chiquito £68,500 2,221 £30.84
Slug & Lettuce £108,750 3,197 £34.02 Ask Italian £69,600 2,254 £30.88
The Filling Station £147,750 3,375 £43.78 Pizza Express £68,100 2,325 £29.29
Tony Macaroni £125,000 3,427 £36.48 Prezzo £70,600 2,413 £29.26
Unit 6 (vacant) £141,750 3,956 £35.83 Harvester £98,600 3,171 £31.09
Cosmo £200,000 7,395 £27.05 Pizza Hut £111,000 3,796 £29.24
Average (exc JDW) £121,800 3,358 £38.55 Hot Flame £136,500 4,661 £29.29
Average (exc JDW) £82,340 2,721 £30.40
In summary, as a result of the approach taken in Scotland, business rates for
pubs are de facto a sales tax, rather than a property tax, as the above
examples clearly demonstrate.
APPENDIX 2 Press release, Tim Martin, 9th September 2025
Pubs Need Tax Equality, Not Tax Complexity
The entire hospitality industry is united in its view that pubs, clubs and
restaurants pay wildly excessive taxes, especially VAT and business rates, in
comparison with supermarkets.
This tax disparity is harming businesses and high streets, but also the social
fabric of the nation - where, other than pubs, can you temporarily escape the
attentions of your own family?
Supermarkets pay zero VAT in respect of food sales, whereas pubs and
restaurants pay 20%, enabling supermarkets, in effect, to subsidise the
selling price of beer, wine and spirits.
A consequent anomaly is that food for posh dinner parties in Notting Hill
or the Cotswolds is VAT-free, whereas fish and chips at your local pub
attracts the full 20%. Just ask Jeremy Clarkson.
As a result of these perverse tax incentives, as investment bank Morgan
Stanley recently reported, pubs have lost approximately 50% of their beer
trade to supermarkets since the millennium, having lost a substantial amount
even before then.
Unfortunately, VAT is not the only hospitality disadvantage. Pubs also pay
about 20 times more business rates per pint than supermarkets. Something
underhand is afoot.
Here's how this faulty system works.
The explanation is just about complicated enough, so that few people in the
government, and maybe even in the Treasury, really understand the details -
and therefore the enormous hospitality disadvantage.
The Rateable Value of any business is set by the Valuation Office Agency
(VOA), and is equal to the yearly rent the property could have been let for on
the open market.
For a pub, this is something called the 'market rent', which is typically
around 10-12% of a pub's annual turnover.
The Rateable Value is then multiplied by the "National Non-Domestic Rate
Multiplier"- the NDRM. For 2025/26 the multiplier is 0.555.
Therefore, a typical pub pays business rates calculated as 0.555 x 10% = 5.6%
of its annual turnover.
So a pub with sales of £600,000 per annum (less than half the Wetherspoon
average) will pay business rates of £33,600 - 5.6%
of £600,000 equals £33,600.
Put another way, for every £1 of sales, a pub will pay business rates of
5.6p. That's 28p on every £5 pint of beer - approximately the average price
of a pint these days.
Let's now compare this with the business rates supermarkets pay.
Back in December 2020, Reuters reported that Asda would "pay business rates
of £340m… to the UK government… waiving tax relief."
Asda's sales were about £23bn in that year, so the business rates payable
were just under 1.5% of sales, meaning a £5 pint cost them only 8p.
Unfortunately, the tax disparity per pint between pubs and supermarkets is
much worse than that.
With their much lower overheads, the average pint of beer bought from a
supermarket will be far, far less than £5 - maybe as little as £1 a
pint, meaning a business rate 'levy' of only 1.5p.
So, 1.5p in a supermarket versus 28p in a pub… which is nearly 20 TIMES
more.
Trade organisation UK Hospitality, acting on behalf of the industry, has
made a strong case for reducing hospitality taxes, in its heroic campaign to
reduce the business rate multiplier.
Unfortunately, this sensible and easy-to-understand approach risks being
undermined by a recent, well-meaning suggestion from Greene King, which argues
that business rates should be based on profits, rather than sales.
However, this would surely create a nightmare of complexity.
Agreeing with government valuation officers a Rateable Value based on the
market rent on average, or "hypothetical", sales is complex enough - but
substituting profits for sales involves far more complex calculations, and
it's hard to see how this could benefit publicans, or indeed the government.
Government valuation officers, and those who negotiate with them on behalf of
pubs, have built up a substantial body of knowledge, based on local pub sales
comparisons.
Reverting to a profits-based analysis would require a huge educational
programme, in effect creating a massive increase in demand for tax advisors,
which is surely every citizen's nightmare.
As things stand today, the valuation officers' primary task, in concert with
their pub counterparts, is to estimate the annual sales of a pub on which the
market rent is based - that is to say, one number only.
However, a system based on profits is infinitely more complex - the
Wetherspoon profit and loss account, for example, has 170 different lines,
mostly representing costs, which differ from pub to pub.
In reality, it would be all-but-impossible to agree these costs for every pub
in the land.
We are sure that Greene King's heart is in the right place, especially since
they brew the sainted Abbot Ale, but feel they've wandered off course, perhaps
after a heavy session, by recommending a profits-based analysis.
Finally, when Jacques Borel campaigned, a few years ago, in the UK for a
fairer VAT rate for pubs, clubs and restaurants, which he had successfully
obtained in many other European countries, the industry was disunited.
Ted Tuppen of Enterprise Inns and Rooney Anand of Greene King, for example,
refused to support Jacques' campaign.
A disunited industry ended up paying far higher VAT than almost any other
European country - as the table from The Scottish Hospitality Group, below,
illustrates.
Country Standard VAT Hospitality VAT
United Kingdom 20% 20%
Germany 19% 7%
Republic of Ireland 23% 13.5%
France 20% 10%
Italy 22% 10%
Spain 21% 10%
Portugal 23% 6%
Poland 23% 8%
Romania 19% 9%
Czech Republic 21% 15%
Croatia 25% 13%
Cyprus 19% 9%
Hungary 27% 18%
Estonia 24% 13%
Slovenia 22% 9.5%
The lesson is: Keep It Simple, Stupid. It's a basic principle that taxes
should be fair and equitable. All we're asking for is equality with
supermarkets, which are doing an excellent job for their customers - the same
rate of VAT and the same business rates per pint.
That way, of course, the government will collect more taxes in the end, as
there will be a more successful hospitality industry, more employment, more
vibrant town centres and less vacant shops and pubs.
Tax equality equates to sensible economic policies - and we are sure that the
entire nation will drink to that.
APPENDIX 3 Extract from Wetherspoon FY 23 Annual Report, Chairman's Statement
Corporate Governance
Wetherspoon has been a strong critic of the composition of the boards of
UK-quoted companies.
As a result of the 'nine-year rule', limiting the tenure of NEDs and the
presumption in favour of 'independent', part-time chairmen, boards are often
composed of short-term directors, with very little representation from those
who understand the company best - people who work for it full time, or have
worked for it full time.
Wetherspoon's review of the boards of major banks and pub companies, which
teetered on the edge of failure in the 2008-10 recession, highlighted the
short "tenure", on average, of directors.
In contrast, Wetherspoon noted the relative success, during this fraught
financial period, of pub companies Fuller's and Young's, the boards of which
were dominated by experienced executives, or former executives.
As a result, Wetherspoon increased the level of experience on the Wetherspoon
board by appointing four "worker directors".
All four worker directors started on the 'shop floor' and eventually became
successful pub managers. Three have been promoted to regional management
roles. They have worked for the company for an average of 24 years.
Board composition cannot guarantee future success, but it makes sensible
decisions, based on experience at the coalface of the business, more likely.
The UK Corporate Governance Code 2018 (the 'Code') is a vast improvement on
previous codes, emphasising the importance of employees, customers and other
stakeholders in commercial success. It also emphasises the importance of its
comply-or-explain ethos, and the consequent need for shareholders to engage
with companies in order to understand their explanations.
A major impediment to the effective implementation of comply or explain seems
to be the undermanning of the corporate governance departments of major
shareholders.
For example, Wetherspoon has met a compliance officer from one major
institution who is responsible for around 400 companies - an impossible task.
As a result, it appears that compliance officers and governance advisors, in
practice, often rely on a "tick-box" approach, which is, itself, in breach of
the Code.
A further issue is that many major investors, in their own companies, for
sensible reasons, do not observe the nine-year rule, and other rules,
themselves. An approach of "do what I say, not what I do" is clearly
unsustainable.
APPENDIX 4 Extract from Wetherspoon FY23 Annual report, Chairman's Report
Property Litigation
In 2013, Wetherspoon agreed an out-of-court settlement of approximately £1.25
million with developer Anthony Lyons, formerly of property leisure agent Davis
Coffer Lyons, relating to claims that Mr Lyons had been an accessory to frauds
committed by Wetherspoon's former retained agent Van de Berg and its directors
Christian Braun, George Aldridge and Richard Harvey in respect of properties
in Leytonstone (which currently trades as the Walnut Tree), Newbury (which was
leased to Café Rouge) and Portsmouth (which currently trades as The Isambard
Kingdom Brunel).
Of these three properties, only Portsmouth was pleaded by Wetherspoon in its
2008/9 case against Van de Berg. Mr Lyons denied the claim and the litigation
was contested.
In the Van de Berg litigation, Mr Justice Peter Smith ruled that Van de Berg,
but not Mr Lyons (who was not a party to the case), fraudulently diverted the
freehold of Portsmouth from Wetherspoon to Moorstown Properties Limited, a
company owned by Simon Conway, which leased the property to Wetherspoon.
As part of a series of cases, Wetherspoon also agreed out-of-court settlements
with:
1) Paul Ferrari of London estate agent Ferrari Dewe & Co, in respect of
properties referred to as the 'Ferrari Five' by Mr Justice Peter Smith in the
Van de Berg case, and
2) Property investor Jason Harris, formerly of First London and now of First
Urban Group who paid £400,000 to Wetherspoon to settle a claim in which
it was alleged that Harris was an accessory to frauds committed by Van de
Berg. Harris contested the claim and did not admit liability.
Messrs Ferrari and Harris both contested the claims and did not admit
liability.
INCOME STATEMENT for the 52 weeks ended 27 July 2025
Notes
52 weeks 52 weeks 52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended ended
27 July 27 July 27 July 28 July 28 July 28 July
2025 2025 2025 2024 2024 2024
before separately after before separately after
separately disclosed separately separately disclosed separately
disclosed Items(1) disclosed disclosed items disclosed
items items items items
£000 £000 £000 £000 £000 £000
Revenue 1 2,127,524 - 2,127,524 2,035,500 - 2,035,500
Other operating income 2 - - - - 4,153 4,153
Operating costs 2 (1,981,115) (4,249) (1,985,364) (1,896,009) (1,059) (1,897,068)
Operating profit/(loss) 146,409 (4,249) 142,160 139,491 3,094 142,585
Property (losses)/gains 3 (948) 2,736 1,788 11 (32,480) (32,469)
Finance income 5 1,371 9,410 10,781 2,032 16,131 18,163
Finance costs 5 (65,387) - (65,387) (67,659) - (67,659)
Profit/(loss) before tax 81,445 7,897 89,342 73,875 (13,255) 60,620
Tax (charge)/income 6 (23,876) 2,525 (21,351) (15,361) 3,526 (11,835)
Profit/(loss) for the period 57,569 10,422 67,991 58,514 (9,729) 48,785
Profit/(loss) per ordinary share (p)
- Basic 7 50.8 9.2 60.0 48.6 (8.1) 40.5
- Diluted 7 48.1 8.7 56.8 46.8 (7.8) 39.0
(1) Separately disclosed items is a measure not required by accounting
standards; a definition is provided in the accounting policies. Post
separately disclosed items is a GAAP measure.
STATEMENT OF COMPREHENSIVE INCOME for the 52 weeks ended 27 July 2025
Notes 52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Items which will be reclassified subsequently to profit or loss:
Interest-rate swaps: gain taken to other comprehensive income 21 - 38
Interest-rate swaps: reclassification to the income statement 21 (12,700) (18,025)
Currency translation differences 1,299 (1,294)
Net loss recognised directly in other comprehensive income (11,401) (19,281)
Profit for the period 67,991 48,785
Total comprehensive profit for the period 56,590 29,504
CASH FLOW STATEMENT for the 52 weeks ended 27 July 2025
Free cash Free cash
flow(1) flow(1)
52 weeks 52 weeks 52 weeks 52 weeks
Note ended ended ended ended
27 July 27 July 28 July 28 July
2025 2025 2024 2024
£000 £000 £000 £000
Cash flows from operating activities
Cash generated from operations 8 254,440 254,440 232,907 232,907
Interest received 5 1,064 1,064 1,765 1,765
Interest paid 5 (29,819) (29,819) (52,482) (52,482)
Cash proceeds on termination of interest-rate swaps - - 14,783 14,783
Corporation tax paid (17,198) (17,198) (9,940) (9,940)
Lease interest 22 (15,260) (15,260) (14,471) (14,471)
Net cash flow from operating activities 193,227 193,227 172,562 172,562
Cash flows from investing activities
Reinvestment in pubs (62,470) (62,470) (76,389) (76,389)
Reinvestment in business and IT projects (11,631) (11,631) (6,243) (6,243)
Investment in new pubs and pub extensions (24,141) - (11,933) -
Freehold reversions and investment properties (18,726) - (21,944) -
Proceeds of sale of property, plant and equipment 8,129 - 17,872 -
Net cash flow from investing activities (108,839) (74,101) (98,637) (82,632)
Cash flows from financing activities
Equity dividends paid 10 (19,460) - - -
Purchase of own shares for cancellation (66,778) - (39,505) -
Purchase of own shares for share-based payments (22,762) (22,762) (12,738) (12,738)
Loan issue cost (1,414) (1,414) (4,948) (4,948)
Advances/(repayments) of bank loans 45,000 - (4,000) -
Other loan receivables 783 - 778 -
Lease principal payments 22 (38,308) (38,308) (39,207) (39,207)
Asset-financing principal payments - - (4,245) -
Net cash flow from financing activities (102,939) (62,484) (103,865) (56,893)
Net change in cash and cash equivalents (18,551) (29,940)
Opening cash and cash equivalents 17 57,233 87,173
Closing cash and cash equivalents 17 38,682 57,233
Free cash flow(1) 56,642 33,037
(1)Free cash flow is a measure not required by accounting standards; a
definition is provided within accounting policies.
BALANCE SHEET as at 27 July 2025
J D Wetherspoon plc, company number: 1709784 Notes 27 July 28 July
2025 2024
£000 £000
Non-current assets
Property, plant and equipment 13 1,404,765 1,374,617
Intangible assets 11 7,876 5,933
Investment property 12 22,549 18,290
Right-of-use assets 22 363,562 373,338
Other loan receivable 15 325 1,194
Lease assets 22 8,799 8,860
Total non-current assets 1,807,876 1,782,232
Current assets
Lease assets 22 1,667 1,358
Assets held for sale 16 2,137 2,488
Inventories 14 31,058 28,404
Receivables 15 26,520 26,576
Current tax receivables - 6,079
Cash and cash equivalents 17 38,682 57,233
Total current assets 100,064 122,138
Total assets 1,907,940 1,904,370
Current liabilities
Derivative financial instruments 21 - (701)
Trade and other payables 18 (289,204) (298,059)
Borrowings 19 (18,619) -
Current tax liabilities (39) -
Provisions 20 (1,503) (3,047)
Lease liabilities 22 (52,042) (49,582)
Total current liabilities (361,407) (351,389)
Non-current liabilities
Borrowings 19 (764,102) (719,134)
Derivative financial instruments 21 (8,063) (4,073)
Deferred tax liabilities 6 (57,211) (59,487)
Lease liabilities 22 (355,161) (368,660)
Total non-current liabilities (1,184,537) (1,151,354)
Total liabilities (1,545,944) (1,502,743)
Net assets 361,996 401,627
Shareholders' equity
Share capital 25 2,260 2,472
Share premium account 143,170 143,170
Capital redemption reserve 2,652 2,440
Other reserves 128,296 195,074
Hedging reserve 21 1,094 13,794
Currency translation reserve 3,819 106
Retained earnings 80,705 44,571
Total shareholders' equity 361,996 401,627
STATEMENT OF CHANGES IN EQUITY
Notes Share Capital Currency ---Distributable reserves---
Share premium redemption Hedging translation Other Retained Total
capital account reserve reserve reserve reserves earnings
£000 £000 £000 £000 £000 £000 £000 £000
As at 30 July 2023 2,575 143,170 2,337 31,781 2,148 234,579 (3,532) 413,058
Total comprehensive income - - - (17,987) (2,042) - 49,533 29,504
Profit for the period - - - - - - 48,785 48,785
Interest-rate swaps: cash flow 21 - - - 38 - - - 38
hedges
Interest-rate swaps: amount 21 - - - (18,025) - - - (18,025)
reclassified to the income statement
Currency translation differences - - - - (2,042) - 748 (1,294)
Purchase of own shares and cancellation (103) - 103 - - (39,505) - (39,505)
Share-based payment charges - - - - - - 11,021 11,021
Tax on share-based payment 6 - - - - - - 287 287
Purchase of own shares for share-based payments - - - - - - (12,738) (12,738)
As at 28 July 2024 2,472 143,170 2,440 13,794 106 195,074 44,571 401,627
Total comprehensive income - - - (12,700) 3,713 - 65,577 56,590
Profit for the period - - - - - - 67,991 67,991
Interest-rate swaps: amount reclassified to the income statement 21 - - - (12,700) - - - (12,700)
Currency translation differences 8 - - - - 3,713 - (2,414) 1,299
Purchase of own shares and cancellation (212) - 212 - - (66,778) - (66,778)
Share-based payment charges - - - - - - 12,466 12,466
Tax on share-based payment 6 - - - - - - 313 313
Purchase of own shares for share-based payments - - - - - - (22,762) (22,762)
Dividends 10 - - - - - - (19,460) (19,460)
As at 27 July 2025 2,260 143,170 2,652 1,094 3,819 128,296 80,705 361,996
The share premium account represents those proceeds received in excess of the
nominal value of new shares issued.
The capital redemption reserve represents the nominal amount of share capital
repurchased and cancelled in previous periods.
Other reserves contain net proceeds received for share placements which took
place in previous periods.
NOTES TO THE FINANCIAL STATEMENTS
1. Revenue
Audited Audited
52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Bar 1,218,543 1,167,450
Food 807,868 773,002
Slot/fruit machines 73,211 66,886
Hotel 22,390 25,337
Other 5,512 2,825
2,127,524 2,035,500
2. Operating profit/(loss) - analysis of costs by nature
52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Revenue 2,127,524 2,035,500
Cost of sales (1,927,237) (1,837,608)
Gross profit 200,287 197,892
Administration costs (58,127) (55,307)
Operating profit after separately disclosed items 142,160 142,585
This is stated after charging/(crediting)
Repairs and maintenance 99,769 114,544
Variable concession rental payments (note 22) 17,579 16,905
Short-term leases (note 22) 446 593
Net rent receivable (2,746) (2,711)
Share-based payments (note 4) 12,466 11,021
Depreciation & amortisation 114,365 102,382
( )
(1)Included in cost of sales is £690.8 million (2024: £664.7 million)
relating to the cost of inventory recognised as an expense.
Auditor's remuneration 52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Fees payable for the audit of the financial statements
- Audit fees 657 610
- Additional audit work (for previous year audit) - 122
Fees payable for other services
- Interim audit fees 76 72
Total auditor's fee 733 804
2025 2025 2025 2024 2024 2024
Before separately After Before separately After
separately disclosed separately separately disclosed separately
disclosed items disclosed disclosed items disclosed
items items items items
£000 £000 £000 £000 £000 £000
Operating items
Local government support grants - - - - (14) (14)
Depreciation adjustment on impaired assets - 968 968 - (4,139) (4,139)
Other - 3,281 3,281 - 1,059 1,059
Total operating (income)/costs - 4,249 4,249 - (3,094) (3,094)
Property gains and losses
Fixed assets 948 1,049 1,997 77 10,496 10,573
Leases - (162) (162) - (1,519) (1,519)
Additional costs of disposal - 1,316 1,316 - 4,405 4,405
Other property gains - - - (88) - (88)
948 2,203 3,151 (11) 13,382 13,371
Impairments
Impairment of assets under construction - - - - 5,334 5,334
Impairment of intangible assets - - - - - -
Impairment of property, plant and equipment - 4,954 4,954 - 19,934 19,934
Reversal of property, plant and equipment impairment - (7,806) (7,806) - (7,582) (7,582)
Impairment of investment properties - - - - 347 347
Reversal of investment properties impairment - (786) (786) - (73) (73)
Impairment of right of use assets - 415 415 - 2,161 2,161
Reversal of right of use asset Impairments - (1,716) (1,716) - (1,023) (1,023)
- (4,939) (4,939) - 19,098 19,098
Total property losses/(gains) 948 (2,736) (1,788) (11) 32,480 32,469
Other items
Finance income - (9,410) (9,410) - (16,131) (16,131)
- (9,410) (9,410) - (16,131) (16,131)
Taxation
Tax effect on separately disclosed items - (2,525) (2,525) - (3,526) (3,526)
- (2,525) (2,525) - (3,526) (3,526)
Total items 948 (10,422) (9,474) (11) 9,729 9,718
3. Property losses and gains and separately disclosed items
Operating items
Local government support grants
There has not been any government support grants received in the year (2024:
£14,000).
Other operating income and costs
Included within other operating income and costs is an adjustment for
previously undercharged depreciation on fixed assets, resulting in a cost of
£968,000 (2024: income of £4,139,000) this period.
Costs of £3,281,000 (2024: £1,059,000) have been recognised in the period,
relating to:
- £1,640,000 (2024: nil) relating to property expenditure which
the company deems to be outside the usual course of business and therefore
classified as separately disclosed items.
- £799,000 (2024: nil) of employee settlement agreements.
- £282,000 (2024: nil) of aged utility supplier debt.
- £216,000 (2024: £1,846,000) relating to a contractual dispute
with a large supplier which is now resolved.
- £205,000 (2024: nil) relating to a court case with HMRC which
is now resolved.
- £139,000 (2024: nil) due to a historic VAT correction.
- in the prior period, costs of £1,846,000 mentioned above were
offset by income of £1,471,000 relating to a settlement agreement in addition
to costs of £684,000 for a historic employment issue.
Property losses
Costs and income relating to sites sold or surrendered during the year.
Impairments
Property impairment relates to pubs which are deemed unlikely to generate
sufficient cash flows in the future to support their
carrying value. In the year, a total impairment charge of £4,954,000 (2024:
£19,934,000) was incurred in respect of property,
plant and equipment and £415,000 (2024: £2,161,000) in respect of
right-of-use assets, as required under IAS 36. There were
impairment reversals of £10,308,000 recognised in the year (2024:
£8,678,000).
Finance costs and income
A charge of £3,290,000 (2024: charge of £1,894,000) relates to the fair
value movement on interest-rate swaps and income of £12,700,000 (2024: income
of £18,025,000) relates to the amortisation of the hedge reserve to the
P&L relating to discontinued hedges.
Taxation
The tax effect on separately disclosed items is income of £2,525,000 (2024:
£3,526,000).
4. Employee benefits expenses
52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Wages 756,677 717,558
Employee support grants - (289)
Social security costs 55,578 45,857
Pension costs 13,323 11,983
Share-based payments 12,466 11,021
838,044 786,130
Directors' remuneration 2025 2024(1)
£000 £000
Wages(1) 1,856 1,802
Share-based payments 398 353
Other pension costs 189 171
2,443 2,326
(1)Restated, see directors' remuneration report.
Employee support grants disclosed above are amounts claimed by the company
under the coronavirus job retention scheme in the Republic of Ireland.
2025 2024
Number Number
Full-time equivalents
Head office 392 388
Pub managerial 4,676 4,542
Pub hourly paid staff 19,261 19,467
24,329 24,397
2025 2024
Number Number
Total employees
Head office 400 397
Pub managerial 4,844 4,743
Pub hourly paid staff 36,837 36,937
42,081 42,077
The totals above relate to the monthly average number of employees during the
year, not the total of employees at the end of the year.
Share-based payments Number of
shares
Outstanding at 28 July 2024 7,776,596
Granted during the year 4,807,900
Forfeited & expired during the period (1,217,083)
Vested during the year (1,562,030)
Outstanding at 27 July 2025 9,805,383
4. Employee benefits expenses (continued)
The company operates two share-based compensation plans; the share incentive
plan (SIP) and the deferred bonus scheme (DBS). The shares awarded as part of
both schemes are based on the cash value at the date of the awards. The fair
value of the shares granted is determined by reference to the share price at
the date of the award. The weighted average fair value of shares granted
during the year is £6.32.
The shares vest at a nil exercise price - and there are no market-based
conditions to the shares which affect their ability to vest. The weighted
average fair value of shares vested during the year is £6.59. This is
determined by reference to the market price at the time of vesting.
The awards vest over three years, with the cost spread over this period. The
weighted average remaining life of the unvested awards is 1.5 years.
5. Finance costs and income
52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Finance costs
Interest payable on bank loans and overdrafts 45,108 48,262
Amortisation of bank loan issue costs (note 9) 1,382 439
Interest payable on swaps 377 866
Interest payable on asset-financing - 70
Interest payable on private placement 2,953 3,284
Finance costs excluding lease interest 49,820 52,921
Interest payable on leases 15,567 14,738
Total finance costs 65,387 67,659
Bank interest receivable (1,064) (1,765)
Lease interest receivable (307) (267)
Total finance income (1,371) (2,032)
Net finance costs before separately disclosed items 64,016 65,627
Separately disclosed finance costs (note 3) - -
Separately disclosed income (note 3) (9,410) (16,131)
(9,410) (16,131)
Net finance costs after separately disclosed items 54,606 49,496
6. Taxation
(a) Tax on profit/(loss) on ordinary activities
The company's profits for the accounting period are taxed at a rate of 25%,
which is the standard rate of corporation tax in the UK.
52 weeks 52 weeks 52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended ended
27 July 2025 27 July 2025 27 July 2025 28 July 2024 28 July 2024 28 July 2024
Before separately After Before separately After
separately disclosed separately separately disclosed separately
disclosed items disclosed disclosed items disclosed
items (note 3) items items (note 3) Items
£000 £000 £000 £000 £000 £000
Taken through income statement
Current tax:
Current tax charge 11,823 11,355 23,178 2,901 12,406 15,307
Previous period adjustment - 216 216 - (3,043) (3,043)
Total current tax 11,823 11,571 23,394 2,901 9,363 12,264
Deferred tax:
Origination and reversal of temporary differences 12,053 (12,578) (525) 12,460 (13,164) (704)
Previous period deferred tax credit - (1,518) (1,518) - 275 275
Total deferred tax 12,053 (14,096) (2,043) 12,460 (12,889) (429)
Tax charge 23,876 (2,525) 21,351 15,361 (3,526) 11,835
52 weeks 52 weeks 52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended ended Ended
27 July 2025 27 July 2025 27 July 2025 28 July 2024 28 July 2024 28 July 2024
Before separately After Before separately After
separately disclosed separately separately disclosed separately
disclosed items disclosed disclosed items disclosed
items (note 3) items items (note 3) items
£000 £000 £000 £000 £000 £000
Taken through equity
Current tax (79) - (79) (52) - (52)
Deferred tax (234) - (234) (235) - (235)
Tax credit (313) - (313) (287) - (287)
On 20 June 2023, the UK substantively enacted Pillar Two Model Rules,
effective as from 1 January 2024. The Pillar Two rules are designed to ensure
that large multinational enterprises (meeting certain conditions) pay
a minimum level of tax on the income arising in each jurisdiction where they
operate.
For the year ended 27 July 2025 it Is expected that the safe harbour
provisions will apply in all territories the company operates and the Pillar
Two tax liability has been calculated as nil. The rules are not expected to
have a material impact on the company's tax rate or tax payments in the
current or future periods
6. Taxation (continued)
(b) Reconciliation of the total tax charge
The taxation charge pre-separately disclosed items, for the 52 weeks ended 27
July 2025, is based on the profit before tax of £81.4 million and the
estimated effective tax rate for the 52 weeks ended 27 July 2025 of 29.3%
(July 2024: 20.8%). This comprises of a current tax rate of 14.5% (July 2024:
3.9%) and a deferred tax charge of 14.8% (July 2024: 16.9% charge).
The current tax rate is lower than the UK standard weighted average tax rate
owing to tax losses in the period.
52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended
27 July 2025 27 July 2025 28 July 2024 28 July 2024
Before After Before After
separately separately separately separately
disclosed disclosed disclosed disclosed
items items items items
£000 £000 £000 £000
Profit before tax 81,445 89,342 73,875 60,620
Profit multiplied by the UK standard rate of 20,361 22,336 18,469 15,155
corporation tax of 25%
Abortive acquisition costs and disposals 355 355 490 490
Expenditure not allowable 188 472 643 1,120
Fair value movement on SWAP disregarded for tax (3,175) - (4,504)
Other allowable deductions - - (18) (18)
Non-qualifying depreciation and loss on disposal 4,659 3,368 (3,143) (1,986)
Capital gains - effect of deferred tax not recognised/(effect of relief) 1 473 - 2,271
Share options and SIPs (1,832) (1,832) (1,382) (1,382)
Deferred tax on balance-sheet-only items (58) (58) (56) (56)
Effect of different tax rates and unrecognised losses in overseas companies 202 715 358 3,513
Previous year adjustment - current tax - 216 - (3,043)
Previous year adjustment - deferred tax - (1,519) - 275
Total tax expense reported in the income statement 23,876 21,351 15,361 11,835
6. Taxation (continued)
(c) Deferred tax
Deferred tax balances have been recognised at the rate they are expected to
reverse. The deferred tax in the balance sheet is as follows:
Deferred tax liabilities Accelerated tax depreciation Other temporary differences Interest-rate swap Total
£000 £000 £000 £000
As at 28 July 2024 51,775 6,056 10,562 68,393
Previous year movement posted to the income statement 760 1 - 761
Movement during year posted to the income statement 9,383 257 (12,578) (2,938)
Reclassification - - 2,016 2,016
At 27 July 2025 61,918 6,314 - 68,232
Deferred tax assets Tax losses and interest capacity carried forward Total
Share-based payments
Other temporary differences
£000 £000 £000
As at 28 July 2024 2,193 1,060 5,653 8,906
Previous year movement posted to the income statement - 1,738 542 2,280
Movement during year posted to the income statement 104 (2,797) 278 (2,415)
Movement during year posted to equity 234 - - 234
Reclassification - - 2,016 2,016
At 27 July 2025 2,531 1 8,489 11,021
The company has recognised deferred tax assets of £11.0 million (2024: £8.9
million), which are expected to be offset against future profits. Included
within this figure, are other temporary differences of £6.5 million (2024:
£5.7 million) relating to capital losses capable of offset against rolled
over gains.
Deferred tax assets and liabilities have been offset as follows:
2025 2024
£000 £000
Deferred tax liabilities 68,232 68,393
Offset against deferred tax assets (11,021) (8,906)
Deferred tax liabilities 57,211 59,487
Deferred tax assets 11,021 8,906
Offset against deferred tax liabilities (11,021) (8,906)
Deferred tax asset - -
As at 27 July 2025, the company had a potential deferred tax asset of £9.8
million (2024: £5.4 million) relating to capital losses (gross tax losses of
£22.9 million (2024: £21.6 million)) and tax losses in the Republic of
Ireland (gross tax losses of £32.3 million (2024: £32.6 million)). Both
types of loss do not expire and will be available to use in future periods
indefinitely. A deferred tax asset has not been recognised, as there is
insufficient certainty of recovery.
The company applies the exception to recognising and disclosing information
about deferred tax assets and liabilities related to Pillar Two taxes, as
provided in the amendments to IAS 12 issued in May 2023.
7. Earnings and free cash flow per share
Weighted average number of shares
Basic earnings per share is calculated by dividing the profit after tax for
the period by the weighted average number of ordinary shares in issue during
the financial year of 120,183,464 (2024: 125,291,770) less the weighted
average number of shares held in trust during the financial year of 6,898,529
(2024: 4,956,072). Shares held in trust are shares purchased by the company to
satisfy employee share schemes which have not yet vested.
Diluted earnings per share is calculated by dividing the profit/(loss) after
tax for the period by the weighted average number of ordinary shares in issue
during the financial year adjusted for both shares held in trust and the
effects of potentially dilutive shares. Potentially dilutive shares are share
awards granted to employees, not yet vested, whose share price at grant date
is below that of the average market price.
Weighted average number of shares 52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
Shares in issue 120,183,464 125,291,770
Shares held in trust (6,898,529) (4,956,072)
Shares in issue - basic 113,284,935 120,335,698
Dilutive shares 6,489,689 4,693,614
Shares in issue - diluted 119,774,624 125,029,312
Earnings per share
52 weeks ended 27 July 2025 Profit/(loss) Basic EPS Diluted EPS
£000 pence pence
Earnings (profit after tax) 67,991 60.0 56.8
Exclude effect of separately disclosed items after tax (10,422) (9.2) (8.7)
Earnings before separately disclosed items 57,569 50.8 48.1
Exclude effect of property gains 948 0.8 0.8
Underlying earnings before separately disclosed items 58,517 51.6 48.9
52 weeks ended 28 July 2024 Profit/(loss) Basic EPS Diluted EPS
£000 pence pence
Earnings (profit after tax) 48,785 40.5 39.0
Exclude effect of exceptional items after tax 9,729 8.1 7.8
Earnings before separately disclosed items 58,514 48.6 46.8
Exclude effect of property losses (11) - -
Underlying earnings before separately disclosed items 58,503 48.6 46.8
Free cash flow per share
Free cash flow per share Free cash Basic free Diluted free
flow cash flow cash flow
per share per share
£000 pence pence
52 weeks ended 27 July 2025 56,642 50.1 47.3
52 weeks ended 28 July 2024 33,037 27.5 26.4
8. Cash used in/generated from operations
52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Profit for the period 67,991 48,785
Adjusted for:
Tax (note 6) 21,351 11,835
Share-based charges (note 4) 12,466 11,021
Loss on disposal of property, plant and equipment (note 3) 3,313 14,978
Disposal of capitalised leases and Lease premiums (note 3) (162) (1,519)
Net impairment charge (note 3) (4,939) 19,098
Interest receivable (note 5) (1,064) (1,765)
Interest payable (note 5) 48,438 52,482
Lease interest receivable (note 5) (307) (267)
Lease interest payable (note 5) 15,567 14,738
Separately disclosed interest (note 5) (9,410) (16,131)
Amortisation of bank loan issue costs (note 5) 1,382 439
Depreciation of property, plant and equipment (note 13) 72,205 63,496
Amortisation of intangible assets (note 11) 2,003 1,937
Depreciation on investment properties (note 12) 218 176
Aborted properties costs 140 336
Foreign exchange movements 1,299 (1,294)
Amortisation of right-of-use assets 39,939 36,773
270,430 255,118
Change in inventories (2,654) 6,154
Change in receivables 56 707
Change in payables (13,392) (29,072)
Cash generated from operations 254,440 232,907
9. Analysis of change in net debt
30 July Cash Non 28 July Cash Non 27 July
2023 flows cash 2024 flows cash 2025
£000 £000 £000 £000 £000 £000 £000
Borrowings
Cash and cash equivalents 87,173 (29,940) - 57,233 (18,551) - 38,682
Other loan receivable 803 (87) - 716 87 - 803
Asset-financing obligations (4,200) 4,245 (45) - - - -
Current net borrowings 83,776 (25,782) (45) 57,949 (18,464) - 39,485
Bank loans (629,783) 8,948 (394) (621,229) (43,586) (1,336) (666,151)
Other loan receivable 1,986 (691) (101) 1,194 (870) 1 325
Private placement (97,860) - (45) (97,905) - (46) (97,951)
Non-current net borrowings (725,657) 8,257 (540) (717,940) (44,456) (1,381) (763,777)
Net debt (641,881) (17,525) (585) (659,991) (62,920) (1,381) (724,292)
Derivatives
NC Interest-rate swaps asset 11,944 (14,783) 2,839 - - - -
Current Interest rate swaps liability (78) - (623) (701) - 701 -
NC Interest-rate swaps liability - - (4,073) (4,073) - (3,990) (8,063)
Total derivatives 11,866 (14,783) (1,857) (4,774) - (3,289) (8,063)
Net debt after derivatives (630,015) (32,308) (2,442) (664,765) (62,920) (4,670) (732,355)
Leases
Current Lease assets 1,361 (976) 973 1,358 (1,063) 1,372 1,667
Non- current Lease assets 8,449 - 411 8,860 - (61) 8,799
Current Lease obligations (51,486) 40,183 (38,279) (49,582) 39,371 (41,831) (52,042)
Non-current Lease obligations (391,794) - 23,134 (368,660) - 13,499 (355,161)
Net lease liabilities (433,468) 39,207 (13,761) (408,024) 38,308 (27,021) (396,737)
Net debt after derivatives and lease liabilities (1,063,483) 6,899 (16,203) (1,072,790) (24,612) (31,691) (1,129,092)
Lease obligations represent long-term payables, while lease assets represent
long-term receivables - both are, therefore, disclosed in the table above.
The non-cash movement in bank loans and the private placement relate to the
amortisation of loan issue costs. The amortisation charge for the year of
£1,382,000 (2024: £439,000) is disclosed in note 5.
The movement in interest-rate swaps relates to the change in the 'mark to
market' valuations for the year for swaps. See note 21 for further detail.
Non-cash movement in net lease liabilities 27 July 28 July
2025 2024
£000 £000
Recognition of new leases (22,016) (8,617)
Recognition of new lease assets 1,399 1,900
Remeasurements of existing leases liabilities (16,123) (22,458)
Remeasurements of existing leases assets (88) (516)
Disposals and derecognised leases - 2,081
Lease transfers to property, plant and equipment 9,732 14,179
Exchange differences 75 (330)
Non-cash movement in net lease liabilities (27,021) (13,761)
10. Dividends paid and proposed
The board proposes, subject to shareholders' consent, to pay a final dividend
of 8.0p (2024: 12.0p) per share, on 27 November 2025, to those shareholders on
the register on 24 October 2025, giving a total dividend for the year of 12.0p
per share.
52 weeks 52 weeks
ended ended
27 July 28 July
2025 2024
£000 £000
Dividends on ordinary shares declared and paid during the year:
Final for 2024 - 12.0p 14,807 -
Interim for 2025 - 4.0p 4,653 -
19,460 -
Proposed for approval by shareholders at the AGM:
Final for 2025 - 8.0p 9,043 14,807
9,043 14,807
Dividend per share (p) 12.0 12.0
Dividend cover 4.01 3.90
Dividend cover is calculated as diluted EPS before separately disclosed items
over dividend per share.
11. Intangible assets
Computer software and development Assets under Total
£000
construction
£000
£000
Cost
At 30 July 2023 36,771 2,113 38,884
Additions 2,505 101 2,606
Transfers 2,114 (2,114) -
Exchange differences (4) - (4)
Disposals (2,516) - (2,516)
At 28 July 2024 38,870 100 38,970
Additions 2,957 989 3,946
Transfers 100 (100) -
At 27 July 2025 41,927 989 42,916
Accumulated amortisation and impairment
At 30 July 2023 (32,379) - (32,379)
Provided during the period (1,937) - (1,937)
Exchange differences 4 - 4
Disposals 1,275 - 1,275
At 28 July 2024 (33,037) - (33,037)
Provided during the period (2,003) - (2,003)
At 27 July 2025 (35,040) - (35,040)
Net book amount at 27 July 2025 6,887 989 7,876
Net book amount at 28 July 2024 5,833 100 5,933
Net book amount at 30 July 2023 4,392 2,113 6,505
Examples of computer software and development include the development costs of
the Wetherspoon customer-facing app and other bespoke company applications.
12. Investment property
The company owns six (2024: six) freehold investment properties, occupied by
tenants.
Total
£000
Cost
At 30 July 2023 24,544
At 28 July 2024 24,544
Additions 17
Transfers from property, plant and equipment 5,842
Transfers to held for sale (2,186)
At 27 July 2025 28,217
Accumulated depreciation and impairment
At 30 July 2023 (5,804)
Provided during the period (176)
Impairment loss (347)
Reversal of impairment loss 73
At 28 July 2024 (6,254)
Provided during the period (218)
Transfers from property, plant and equipment (31)
Reversal of impairment loss 786
Transfers to held for sale 49
At 27 July 2025 (5,668)
Net book amount at 27 July 2025 22,549
Net book amount at 28 July 2024 18,290
Net book amount at 30 July 2023 18,740
Rental income received from investment properties in the period was
£1,432,000 (2024: £1,205,000)
In the prior year, investment properties were independently valued.
Corresponding impairment charges and reversals were made in the prior year to
adjust their net book values.
13. Property, plant and equipment
Freehold and long leasehold property Short-leasehold property Equipment fixtures and fittings Assets under construction Total
£000
£000
£000
£000
£000
Cost
At 30 July 2023 1,494,053 272,584 763,384 64,890 2,594,911
Additions 36,085 4,347 52,105 22,367 114,904
Transfers from capitalised leases (1,753) - - - (1,753)
Transfers 21,880 1,225 6,414 (29,519) -
Exchange differences (917) (43) (168) (183) (1,311)
Transfer to held for sale (7,335) - - - (7,335)
Disposals (42,970) (10,892) (6,601) - (60,463)
Reclassifications 8,661 (8,661) - - -
At 28 July 2024 1,507,704 258,560 815,134 57,555 2,638,953
Additions 38,821 6,377 57,708 10,186 113,092
Transfers from capitalised leases (418) - - - (418)
Transfers from held for sale 300 - - - 300
Transfers to investment property (5,842) - - - (5,842)
Transfers 16,774 2,234 11,258 (30,266) -
Exchange differences 1,900 92 314 5 2,311
Disposals (11,983) (2,307) (4,044) - (18,334)
Reclassifications 8,935 (8,935) - - -
At 27 July 2025 1,556,191 256,021 880,370 37,480 2,730,062
Accumulated depreciation and impairment
At 30 July 2023 (425,107) (170,576) (620,811) (601) (1,217,095)
Provided during the period (19,844) (8,184) (35,468) - (63,496)
Transfers to capitalised leases 211 - - - 211
Exchange differences 35 12 91 - 138
Impairment loss (16,335) (1,237) (2,362) (5,334) (25,268)
Reversal of impairment losses 6,612 584 386 - 7,582
Transfers to held for sale 4,847 - - - 4,847
Disposals 13,379 7,202 4,171 3,993 28,745
Reclassifications (5,725) 5,725 - - -
At 28 July 2024(1) (441,927) (166,474) (653,993) (1,942) (1,264,336)
Provided during the period (24,025) (8,268) (39,912) - (72,205)
Exchange differences (179) (37) (231) - (447)
Transfers (586) - - 586 -
Transfers to investment property 31 - - - 31
Impairment loss (4,403) (78) (473) - (4,954)
Reversal of impairment losses 6,890 622 294 - 7,806
Disposals 4,512 843 2,262 1,191 8,808
Reclassifications (6,710) 6,710 - - -
At 27 July 2025 (466,397) (166,682) (692,053) (165) (1,325,297)
Net book amount at 27 July 2025 1,089,794 89,339 188,317 37,315 1,404,765
Net book amount at 28 July 2024 1,065,777 92,086 161,141 55,613 1,374,617
Net book amount at 30 July 2023 1,068,946 102,008 142,573 64,289 1,377,816
Reclassifications relate to assets transferred from short leasehold property
to freehold and long leasehold property as a result of a freehold reversion.
14. Events after the balance sheet date
There were no significant events after the balance sheet date.
15. Going concern
The directors have made enquiries into the adequacy of the Company's financial
resources, through a review of the Company's budget and medium-term financial
plan, including capital expenditure plans and cash flow forecasts.
In line with accounting standards, the going concern assessment period is the
12-months from the date of approval of this report.
The Company has modelled a 'base-case' forecast in which recent momentum of
sales, profit and cash flow growth is sustained. The base case scenario
indicates that the Company will have sufficient resources to continue to
settle its liabilities as they fall due and operate within its leverage
covenants for the going concern assessment period.
A more cautious but plausible scenario has been analysed, in which lower sales
growth is realised. The Company has reviewed, and is satisfied with, the
mitigating actions which it could take if such an outcome were to occur. Such
actions could include reducing discretionary expenditure and/or implementing
price increases. Under this scenario, the Company would still have sufficient
resources to settle liabilities as they fall due and sensible headroom within
its covenants through the duration of the going concern review period.
The Company has also performed a 'reverse stress case' which shows that the
Company could withstand a significant reduction in sales from those assessed
in the 'base case' throughout the going concern period, before the covenant
levels would be exceeded towards the end of the review period. The directors
consider this scenario to be extremely remote. Furthermore, in such a
scenario, the Company could take additional mitigating actions to prevent any
covenant breach.
After due consideration of the matters set out above, the directors have
satisfied themselves that the Company will continue in operational existence
for the foreseeable future. For this reason, the Company continues to adopt
the going-concern basis in preparing its financial statements.
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