UK's J D Wetherspoon warns of lower fiscal 2026 profit (updated)
21/01/2026 07:27
Energy, property tax bills surge 45 million pounds in first half Profit in first half likely to be lower than prior year Fiscal 2026 trading outcome may fall below previous year -Martin Shares drop 8% Adds CEO comments in paragraphs 5 and 9, analyst comment in 11 By Raechel Thankam Job Jan 21 (Reuters) - J D Wetherspoon JDW.L warned on Wednesday that fiscal 2026 profit could fall as the British pub chain grapples with mounting costs from energy bills, repairs and property taxes, sending shares 8% lower in early trading. Like-for-like sales rose 4.7% in the 25 weeks to January 18, on strong bar sales during the second quarter and the Christmas period, but revenue growth has been offset by rising expenses. The pub group said profits in the first half ending January 25 are likely to be lower as costs jumped by 45 million pounds in the first 25 weeks. Shares fell more than 8% in early trade, putting the stock on track for its worst day since March last year. Repairs came in slightly higher than planned, CEO John Hutson told analysts, as ageing estates of the group, known for converting former cinemas and historic buildings into pubs, required more work. "If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25," Chair Tim Martin said in a statement. NEW PROPERTY TAXES SPARK INDUSTRY CONCERNS Changes to business rates introduced in November - a property tax on commercial premises - have raised concerns about possible pub closures and job losses across the pub industry. Earlier in January, the government said it was considering measures to ease business‑rates pressures on pubs to support the hospitality sector. "The large groups like Wetherspoon, haven't benefited from any of the rates released to this point," Hutson said. After a year marked by higher wages and national insurance costs, the latest increases in energy bills and taxes are adding pressure to Wetherspoon's low-cost model, which analysts say could limit its ability to raise prices. "Although the recent direction of travel has not been favourable, recent events suggest the government is starting to listen, and a reduction in business rates is possible," said Peel Hunt analysts. ($1 = 0.7442 pounds) (Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu and Louise Heavens) ((RaechelThankam.Job@thomsonreuters.com;))