REG - Wetherspoon (JD) PLC - Interim Results
20/03/2026 07:00
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RNS Number : 3994X Wetherspoon (JD) PLC 20 March 2026
20 March 2026
J D WETHERSPOON PLC
INTERIM RESULTS
(For the 26 weeks ended 25 January 2026)
FINANCIAL HIGHLIGHTS Var %
Before separately disclosed items
Like-for-like sales (vs FY2025) +4.8%
Revenue £1,087.8m (2025: £1,029.5m) +5.7%
Profit before tax £22.4m (2025: £32.9m) -31.9%
Operating profit £52.9m (2025: £64.8m) -18.4%
Basic earnings per share 15.5p (2025: 21.5p) -27.9%
Free cash outflow per share (0.1p) (2025: outflow (0.4p)) +75.0%
Half year dividend 4.0p (2025: 4.0p) 0.0%
After separately disclosed items(1)
Profit before tax £26.0m (2025: £41.3m) -37.0%
Operating profit £53.0m (2025: £63.0m) -15.9%
Basic earnings per share 18.7p (2025: 27.8p) -32.7%
(1)Separately disclosed items as disclosed in account note 2.
Commenting on the results, Tim Martin, the Chairman of J D Wetherspoon plc,
said:
"In the last seven weeks, to 15 March 2026, like-for-like sales increased by
2.6%.
"The latest 'CGA RSM Hospitality Business Tracker', for February 2026, said
industry like-for-like sales were -0.2%. During this period, Wetherspoon
like-for-like sales were +3.2%. This was the 42(nd) 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 'Extended Producer
Responsibility' tax, a levy on packaging will cost £2.4 million in the
current year, an increase of £1.6 million. These cost increases will
undoubtedly add to underlying inflation in the UK economy, although
Wetherspoon, as always, will endeavour to keep price increases to a minimum.
"There is clearly considerable pressure on consumer finances, combined with
higher taxes, wages and energy costs for the hospitality industry. This may
result in profits that are slightly below current market expectations. The
forecast for year-end net debt remains unchanged."
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 26 July 2026 or 27 July 2025. The financial information for the
period ended 27 July 2025 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 2026 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 6 May
2026.
CHAIRMAN'S STATEMENT
Overview
The hospitality industry has struggled in the aftermath of the pandemic.
Wetherspoon sales in the first half of FY26 were £1,088 million, a 22%
increase (£198 million) compared to the pre-pandemic first half of FY19.
At the same point in FY19, the company had 85 more pubs, so sales per
pub were 35.4% higher in the period under review - above inflation. However,
costs of energy (+80.0%) and wages (+61.1%), for example, which have a major
influence on almost all input prices, rose more than sales.
In addition, substantial tax and cost increases have been imposed on the
hospitality industry, including a plethora of stealth taxes (non-domestic
electricity charges; climate change levies; packaging charges etc), by recent
governments, so that profits are still below pre-pandemic levels.
From about 2010 to 2015, Wetherspoon campaigned, mainly in concert with
"family brewers", including Fuller's, St Austell, Shepherd Neame and others,
as part of Frenchman Jacques Borel's "VAT Club", for approximate VAT equality
with supermarkets- supermarkets pay zero VAT on food sales, versus 20% for
pubs and restaurants.
Jacques had successfully campaigned for lower VAT (or the equivalent sales
tax) in several different countries but, strangely, some of the largest pubcos
in the UK at the time, including Enterprise Inns and Greene King, were openly
hostile to the VAT Club, and many more were agnostic or apathetic.
Even more strangely, the most widely read pub newspaper, The Morning
Advertiser, withdrew support for the VAT Club, on the basis that Jacques Borel
was "having a bad game"- strange days indeed, as the song goes.
This boardroom and editor's view was not shared by publicans at the coalface,
as market research at the time demonstrated - around 90% of tenants and
licensees supported the VAT Club's objectives.
Plus ça change. Very recently, the leader of the leading party in the opinion
polls promised, in effect, tax parity with supermarkets - an amazing result
for the now-defunct VAT Club.
Indeed, this support for reduced VAT has been echoed recently, in terms, by
the former deputy prime minister, a Labour MP.
Pragmatic former VAT Club members are politically agnostic - all we ask for is
tax equality.
However, counterintuitive though it may be, once again, there has been either
hostility or indifference from key areas of the pub industry, with virtually
no clarion calls supporting these political initiatives for tax parity.
Indeed, widely read trade publication Langton Capital, echoing The Morning
Advertiser of the past, has confirmed its opposition, the big pubcos are
mostly silent, and even the main hospitality industry organisations
seem tongue-tied.
Yet, as Morgan Stanley research demonstrates, pubs have lost 50% of their beer
trade since the millennium - including about 15% since the pandemic.
So, let's prepare for a future film about the demise of pubs, perhaps called,
"Deathwish in the Boardroom", which will delve into the psychology of pub
company directors who refused to back calls for tax equality with
supermarkets.
I have written an article on this subject, widely reported in the media, which
can be found in appendix 1 below.
Trading Summary
Total sales in the half year FY26 were, as indicated above, £1,088 million,
an increase of 5.7%, compared to the same period last year. LFL sales
increased by 4.8% - bar sales by 7.0%, food by 1.3%, and slot/fruit machines
by 8.9%. Room sales for hotels declined by 0.6%, 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 £52.9 million (2025:
£64.8 million).
The reduction was due to higher costs, including wages, which increased by
£28 million, repairs by £10 million, and business rates by £9 million.
The operating margin, before separately disclosed items, was 4.86% (2025:
6.30%).
Profit, before tax and separately disclosed items, was £22.4 million (2025:
£32.9 million).
Property
Six Wetherspoon managed pubs opened in the year and six were sold or closed.
The disposals gave rise to a cash inflow of £3.3 million.
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
Eight franchised pubs opened in the period, bringing the total number to 16.
The company anticipates opening approximately 15-20 franchised pubs in the
current financial year. Franchised pubs have performed well, with encouraging
sales levels.
Earnings
Earnings per share, before separately disclosed items were 15.5p (2025:
21.5p).
Capital investment
Total capital investment was £45.3 million (2025: £64.6 million). £12.3
million was invested in new pubs and pub extensions (2025: £10.4 million),
£18.3 million in existing pubs (2025: £34.7 million), £2.7 million in
business and IT projects (2025: £6.0 million) and £12.0 million in freehold
reversions of properties where Wetherspoon was the tenant (2025: £13.6
million).
Separately disclosed items
Overall, there was a pre-tax 'separately disclosed gain' of £3.6 million
(2025: £8.5 million gain). This was made up of the following credits:
• £4.7 million relating to the amortisation of the hedge reserve to the
P&L (please see below);
• £0.2 million relating to property income and the fair value movement of
interest rate swaps;
In addition, there were two charges:
• £0.6 million relating to property disposals;
• £0.7 million in respect of impairment charges;
The full details of separately disclosed items are listed in note 2 of the
accounts.
As regards the £4.7 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 £53.0 million (2025:
£63.0 million).
Profit before tax, after separately disclosed items, was £26.0 million (2025:
£41.3 million).
Earnings per share, after separately disclosed items, were 18.7p (2025:
27.8p).
The tax effect on separately disclosed items is a charge of £0.3 million
(2025: charge of £1.1 million).
Net book value
The net book value of the company's assets in the balance sheet at the end of
the period was £1.40 billion, which is approximately seven times the
company's EBITDA in the last 12 months of £192.9 million. The company's
freehold assets have not been revalued for over 25 years.
Free cash flow
There was a free cash outflow of £0.2 million (2025: outflow of £0.5
million), after capital payments of £21.0 million for existing pubs (2025:
£40.7 million), £15.6 million of share purchases for the employee share
scheme (2025: £11.8 million) and payments of tax and interest.
Balance sheet
Net debt, excluding IFRS-16 lease debt, was £772.9 million at the period end
(27 July 2025: £724.3 million).
On an IFRS-16 basis, which includes notional debt from leases, debt increased
from £1.12 billion to £1.15 billion at the end of the period.
Dividends and return of capital
The board declared an interim dividend of 4.0p (2025: 4.0p) per share. The
interim dividend will be paid on 4 June 2026 to shareholders who are on the
register of members at close of business on 8 May 2026 (the Record Date).
During the period, 2,770,750 shares (2.5% of the start-of-year share capital)
were purchased by the company for cancellation, at a cost of £20.1 million,
including stamp duty and fees, representing an average cost per share of
724.0p.
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 5.91% (27 July 2025: 6.57%).
Taxation
The total tax charge for the period was £6.3 million in respect of profits
before separately disclosed items (2025: £8.0 million).
The total tax charge comprises two parts. The first part is the actual current
tax (the 'cash' tax) which this period is £5.4 million (2025: £5.4 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 £0.9 million (2025:
£2.6 million).
Wetherspoon News
In the most recent edition of Wetherspoon News, I have tried to define the
three main challenges facing pubs and the hospitality industry, an area of
intense media and public concern.
Two of the challenges, taxation and energy, are detailed in this statement.
The third is the revival of the temperance movement, which appears to have
surreptitiously infiltrated the mainstream media and the medical profession.
(see pages 4-5 of Wetherspoon News
https://www.jdwetherspoon.com/wp-content/uploads/2026/03/WNEWS-Spring-summer-2026.pdf
(https://www.jdwetherspoon.com/wp-content/uploads/2026/03/WNEWS-Spring-summer-2026.pdf)
)
Scottish business rates
As we did last year, in appendix 2 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.
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 period ended 25 January 2026, the company, its staff and customers
generated taxes of £437 million. The table below shows the £6.8 billion of
tax revenue generated in the last ten and a half years.
Each pub, on average, generated £8.0 million in tax during that period. The
tax generated by the company, during the 10 and half year period, equates to
approximately 27 times the company's profits after tax.
Republic of Ireland pubs generated approximately €5.4 million of Irish tax
contributions during the period, of which €3.0 million related to VAT,
€1.2 million alcohol duty and €1.0 million employment taxes.
2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 TOTAL
H1
2016 to 2026 H1
£m £m £m £m £m £m £m £m £m £m £m £m
VAT 210.3 411.2 394.7 372.3 287.7 93.8 244.3 357.9 332.8 323.4 311.7 3,340.1
Alcohol duty 86.9 166.5 163.7 166.1 158.6 70.6 124.2 174.4 175.9 167.2 164.4 1,618.5
PAYE and NIC 84.1 153.6 134.7 124.0 141.9 101.5 106.6 121.4 109.2 96.2 95.1 1,268.3
Business rates 22.5 42.2 41.3 49.9 50.3 1.5 39.5 57.3 55.6 53.0 50.2 463.3
Corporation tax 12.4 21.9 9.9 12.2 1.5 - 21.5 19.9 26.1 20.7 19.9 166.0
Fruit/slot Machine duty 9.6 18.3 16.7 15.7 12.8 4.3 9.0 11.6 10.5 10.5 11.0 130.0
Climate change levies 6.7 13.9 10.2 11.1 9.7 7.9 10.0 9.6 9.2 9.7 8.7 106.7
Stamp duty 0.2 1.2 1.1 0.9 2.7 1.8 4.9 3.7 1.2 5.1 2.6 25.4
Sugar tax 1.3 2.7 2.6 3.1 2.7 1.3 2.0 2.9 0.8 - - 19.4
Fuel duty 1.0 1.9 2.0 1.9 1.9 1.1 1.7 2.2 2.1 2.1 2.1 20.0
Apprenticeship levy 1.5 2.7 2.5 2.5 2.2 1.9 1.2 1.3 1.7 0.6 - 18.1
Carbon tax - - - - - - - 1.9 3.0 3.4 3.6 11.9
Premise licence and TV licences 0.3 0.5 0.5 0.5 0.5 0.5 1.1 0.8 0.7 0.8 0.8 7.0
Landfill tax - - - - - - - - 1.7 2.5 2.2 6.4
Insurance tax 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 2.3
Extended Produced Responsibility (EPR) 1.3 0.8 - - - - - - - - - 2.1
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 438.4 837.7 780.2 760.4 666.9 39.1 442.1 765.1 730.7 695.3 672.4 6,828.3
TAX PER PUB (£m) 0.55 1.05 0.98 0.92 0.78 0.05 0.51 0.87 0.83 0.78 0.71 8.03
TAX AS % OF NET SALES 40.2% 39.4% 38.3% 39.5% 38.3% 5.1% 35.0% 42.1% 43.1% 41.9% 42.1% 36.8%
Loss/Profit after tax 16.1 57.6 58.5 33.8 -24.9 -146.5 -38.5 79.6 83.6 76.9 56.9 253.1
Note - this table is prepared on a cash basis, is UK only and post IFRS-16
from FY20 onward.
Corporate Governance
As previously indicated, Wetherspoon has been a strong critic of the
composition of the boards of UK-quoted companies.
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 £24.0 million of bonuses and free shares
to employees, of which 99.0% was paid to staff below board level and 91.5% was
paid to staff working in pubs. Approximately 27,000 of 42,050 employees are
shareholders in the company.
The average length of service of a pub manager has increased to 15.7 years,
and of a kitchen manager to 11.7 years.
Wetherspoon has been recognised by the Top Employers Institute as a 'Top
Employer United Kingdom 2026'. It is the 21(st) time that Wetherspoon has been
certified by the Top Employers Institute.
280 pubs feature in CAMRA's 2026 Good Beer Guide, an increase of 29 compared
to last year. 49 Wetherspoon pubs have been in the guide for 10 consecutive
years or more.
In 2025, Wetherspoon was voted the 'Best Airport Retailer for Food &
Beverages' and won silver as the 'Best Rail Station & Beverage Outlet' at
the British Travel Awards.
Wetherspoon has been included in the Financial Times 'FT - Statista Leaders
2026' report, which highlights Europe's leading companies in diversity and
inclusion. It is the third consecutive year Wetherspoon has been named as a
diversity leader in the survey which takes feedback directly from the
company's employees.
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 £26 million for the
charity, thanks to the generosity and efforts of our customers and employees.
772 of the company's washrooms have been awarded the highest platinum or
diamond statuses at the 2025 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 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.
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 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 'Beer & Cellar Hygiene 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 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); Tetra Pak cartons; and
general waste.
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.
4,667 tonnes of recyclable waste were processed during the period 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 4.2% compared to
last year, with 69.5% of all pub waste now being recycled. In the last 18
months, 100% of waste collected from Wetherspoon pubs by Veolia was diverted
from landfill. Our progress in this area was recognised at the 2025 Let's
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 completed a rollout of 100 automated meter
readers for water in our highest consuming sites, with further plans to
install in the rest of the estate in due course.
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
2007 19 47 41%
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%
2026 H1 24 16 150%
Total(2) 535 934 57.3%
(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 11.0 7.1
2017 11.1 8.0
2018 12.0 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
2026 H1 15.7 11.7
Food hygiene ratings
Wetherspoon has always emphasised the importance of hygiene standards.
We now have 747 pubs, including franchises, rated on the Food Standards
Agency's website (see table below). The average score is 4.99, with 99.2% 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 54 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
2026 H1 747 4.99 99.2
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 536 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 retired from the board at the AGM in November 2025.
The board has appointed John Herring in January 2026 as a non-executive
director of the company and as chair of the audit committee.
Current trading and outlook
In the last seven weeks, to 15 March 2026, like-for-like sales increased by
2.6%.
The latest 'CGA RSM Hospitality Business Tracker', for February 2026, said
industry like-for-like sales were -0.2%. During this period, Wetherspoon
like-for-like sales were +3.2%. This was the 42(nd) 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 'Extended Producer
Responsibility' tax, a levy on packaging will cost £2.4 million in the
current year, an increase of £1.6 million. These cost increases will
undoubtedly add to underlying inflation in the UK economy, although
Wetherspoon, as always, will endeavour to keep price increases to a minimum.
There is clearly considerable pressure on consumer finances, combined with
higher taxes, wages and energy costs for the hospitality industry. This may
result in profits that are slightly below current market expectations. The
forecast for year-end net debt remains unchanged.
Tim Martin
Chairman
19 March 2026
APPENDIX 1 Press release, Tim Martin, 9(th) February 2026
Wetherspoon calls on hospitality industry to back political support for tax
reform
A few days ago, the leader of the political party which is leading in the
latest polls, offered the hospitality industry something many had assumed
impossible - in effect, tax parity with supermarkets.
There's no question that this initiative would utterly transform the
competitiveness of pubs, which have lost 50% of their beer trade to
supermarkets since the millennium, according to analysts at bankers Morgan
Stanley.
In this plan, VAT would be reduced to 10% for the hospitality industry, with
further reductions in excise duty and business rates to come.
Most pubs could probably, for example, offer one beer, one lager and one cider
for, say £2.99, with these tax reductions - and STILL have a higher gross
margin than today.
By eliminating the tax differential between supermarkets and the hospitality
industry, and restoring margins to devastated businesses, these changes would
enable pubs to regain some, or all, of their lost trade.
You would think that this offer from Reform would have been greeted by a
crescendo of enthusiasm, ecstasy and support from the licensed trade and its
supporters.
However, surprisingly, initial support has been underwhelming, at least from
the great and the good in the hospitality industry.
For example, Mark Brumby of Langton Capital, a widely read pub trade
publication, damned the proposals with bland reporting, by saying:
" A 10% cut could either see the price of a pint drop by 5p or operators widen
their margins. Reform has also said it would halve the rate of VAT for the
…hospitality sector ".
Try and control your excitement, Mr Brumby, we beg you..
And one of the main industry umbrella organisations, the BBPA (British Beer
and Pub Association) said:
"We're pleased that political parties are recognising the value of the local
and want to ensure their success…".
Not exactly a ringing endorsement of the best offer any politician has ever
made to the hospitality industry in history, is it?
But, weirdly, we've been here before. A Frenchman, Jacques Borel, started a
VAT Club in 2010, aimed at reducing VAT for food in the UK hospitality
industry to 5%, having successfully achieved similar reductions in a
substantial number of countries.
Bizarrely, the then CEOs of two of the biggest pub companies, Enterprise Inns
and Greene King were openly hostile to Jacques' tax equality argument - others
were indifferent or agnostic.
Even more bizarrely, the then editor of the biggest pub trade publication, the
Morning Advertiser, withdrew support for the VAT campaign, since, he told me,
Jacques was "having a bad game". Not as bad a game as you, mate, I thought.
Sometimes, you are at a loss to understand what appears to be perverse
human behaviour. What could the motivations of the CEOs and the editor
possibly have been?
Perplexed, Wetherspoon, at considerable cost, decided, at the time, to conduct
a major survey of UK publicans, those on the frontline that the CEOs and
editor purported to represent - especially the employees of the recalcitrant
CEOs of Enterprise and Greene King.
Unsurprisingly, sanity prevailed in the lounge bars of UK pubs. Cardinal
Research reported in 2013 that "96% of licensees think the pub and restaurant
industry should campaign for a reduction of VAT on food".
Cardinal added that "94% support the campaign by the VAT Club" and that "86%
agree that it's unfair that supermarkets pay no VAT on food but
pubs/restaurants have to".
Needless to say, Greene King's and Enterprise Inns' s licensees strongly
supported the VAT Club and disagreed with the views of their own CEOs.
But here we go again! So what goes through the minds of the directors of the
biggest pub companies as they watch their trade switch, almost weekly, to
supermarkets, due to the vast tax-supported price differential between the on
and off-trade?
APPENDIX 1 Press release, Tim Martin, 9(th) February 2026 (continued)
A range of thoughts, probably. I suspect, but don't know, that the CEOs in the
Borel era were closet, or not-so-closet supporters of the government of the
time - and didn't want to rock the boat. Chancellor George Osborne, not really
a pub guy, was outright hostile to Jacques the Lad.
Some others mistakenly thought they weren't competing with supermarkets, so
why bother. Yet others were short-termists: I'm off in a year or two, so I'm
alright, Jacques .
But credit where it's due , the family brewers, long-termists and driven by
principle, not politics , were on board. Well done to Fuller's, Shepherd
Neame, St Austell and many others.
The principle in question is that the beleaguered hospitality industry needs
to get behind whatever organisation or political party promises a fair and
equitable tax regime.
So here's the question for the British public - and for the senior figures in
the hospitality industry. Do you believe in tax equality with supermarkets?
If you don't, pubs may increasingly become a "special occasion" experience, as
a result of high prices, rather than the melting pot for daily rendezvous
between neighbours , workers and lovers of the glorious past.
If you do believe in tax equality, then you'd better support it, because the
supermarket industry has nicked half your trade in recent years - and it will
gobble up most of the rest in no time flat.
Finally, it's not your job to worry about how tax equality is funded. As
someone once said, the tax system needs a "sensible rebalancing". And as a
former Treasury official said to Jacques Borel and myself - don't tell us how
to raise the money. It's not a lot in the scheme of things. Tell us what's
wrong and we'll do the number crunching.
APPENDIX 2 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 3 Extract from Wetherspoon FY23 Annual report, Chairman's Statement
Corporate Governance
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 Statement
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
case 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 26 weeks ended 25 January 2026
J D Wetherspoon plc, company number: 1709784
Notes Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
26 weeks 26 weeks 26 weeks 26 weeks 26 weeks 26 weeks
ended ended ended ended ended ended
25 January 25 January 25 January 26 January 26 January 26 January
2026 2026 2026 2025 2025 2025
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
Revenue 1 1,087,792 - 1,087,792 1,029,518 - 1,029,518
Operating costs 2 (1,034,880) 112 (1,034,768) (964,691) (1,806) (966,497)
Operating profit 52,912 112 53,024 64,827 (1,806) 63,021
Property losses 2 - (1,304) (1,304) - (825) (825)
Finance income 2 293 4,774 5,067 1,256 11,107 12,363
Finance costs (30,835) - (30,835) (33,214) - (33,214)
Profit before tax 22,370 3,582 25,952 32,869 8,476 41,345
Income tax charge 4 (6,275) (292) (6,567) (7,988) (1,131) (9,119)
Profit for the period 16,095 3,290 19,385 24,881 7,345 32,226
Profit per ordinary share (p)
- Basic 5 15.5 3.2 18.7 21.5 6.3 27.8
- Diluted 5 14.5 3.0 17.5 20.6 6.1 26.7
STATEMENT OF COMPREHENSIVE INCOME for the 26 weeks ended 25 January 2026
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
25 January 26 January 27 July
2026 2025 2025
£000 £000 £000
Items which will be reclassified subsequently to profit or loss:
Interest rate swaps: loss reclassification to the income statement (4,710) (6,986) (12,700)
Currency translation differences (331) (596) 1,299
Net loss recognised directly in other comprehensive income (5,041) (7,582) (11,401)
Profit for the period 19,385 32,226 67,991
Total comprehensive profit for the period 14,344 24,644 56,590
CASH FLOW STATEMENT for the 26 weeks ended 25 January 2026
J D Wetherspoon plc, company number: 1709784
( )
Unaudited Unaudited Unaudited Unaudited Audited Audited
free cash free cash free cash
flow(1) flow(1) flow(1)
26 weeks 26 weeks 26 weeks 26 weeks 52 weeks 52 weeks
Note ended ended ended ended ended ended
25 January 25 January 26 January 26 January 27 July 27 July
2026 2026 2025 2025 2025 2025
£000 £000 £000 £000 £000 £000
Cash flows from operating activities
Cash generated from operations 6 102,142 102,142 115,230 115,230 254,440 254,440
Interest received 228 228 1,107 1,107 1,064 1,064
Interest paid (24,321) (24,321) (25,100) (25,100) (29,819) (29,819)
Corporation tax paid (12,430) (12,430) (10,858) (10,858) (17,198) (17,198)
Lease interest 11 (6,978) (6,978) (7,254) (7,254) (15,260) (15,260)
Net cash flow from operating activities 58,641 58,641 73,125 73,125 193,227 193,227
Cash flows from investing activities
Reinvestment in pubs (18,276) (18,276) (34,664) (34,664) (62,470) (62,470)
Reinvestment in business and IT projects (2,696) (2,696) (5,988) (5,988) (11,631) (11,631)
Investment in new pubs and pub extensions (12,327) - (10,375) - (24,141) -
Freehold reversions and investment properties (12,020) - (13,580) - (18,726) -
Proceeds of sale of property, plant and equipment 5,690 - 5,686 - 8,129 -
Net cash flow used in investing activities (39,629) (20,972) (58,921) (40,652) (108,839) (74,101)
Cash flows from financing activities
Equity dividends paid (9,024) - (14,807) - (19,460) -
Purchase of own shares for cancellation (20,161) - (8,891) - (66,778) -
Purchase of own shares for share-based payments (15,561) (15,561) (11,763) (11,763) (22,762) (22,762)
Loan issue cost - - (294) (294) (1,414) (1,414)
Advances under bank loans 49,000 - 60,000 - 45,000 -
Other loan receivables 396 - 391 - 783 -
Lease principal payments 11 (22,271) (22,271) (20,915) (20,915) (38,308) (38,308)
Net cash flow from (used in) financing activities (17,621) (37,832) 3,721 (32,972) (102,939) (62,484)
Net change in cash and cash equivalents 1,390 17,925 (18,551)
Opening cash and cash equivalents 38,682 57,233 57,233
Closing cash and cash equivalents 40,072 75,158 38,682
Free cash flow(1) (163) (499) 56,642
( )
(1) Free cash flow is a measure not required by accounting standards; a
definition is provided in the accounting policies within the 2025 Annual
Report.
BALANCE SHEET as at 25 January 2026
J D Wetherspoon plc, company number: 1709784 Restated(1)
Notes Unaudited Unaudited Audited
25 January 26 January 27 July
2026 2025 2025
£000 £000 £000
Non-current assets
Property, plant and equipment 1,399,745 1,397,306 1,404,765
Intangible assets 8,500 6,902 7,876
Investment property 28,610 18,202 22,549
Right-of-use assets 11 348,369 367,864 363,562
Other loan receivable - 803 325
Derivative financial instruments - 314 -
Receivables 2,725 - -
Lease assets 11 7,685 9,374 8,799
Total non-current assets 1,795,634 1,800,765 1,807,876
Current assets
Lease assets 11 1,513 1,066 1,667
Assets held for sale 9 133 1,500 2,137
Inventories 31,493 31,460 31,058
Receivables 23,494 27,276 26,520
Current income tax receivables 6,871 4,837 -
Cash and cash equivalents 40,072 75,158 38,682
Total current assets 103,576 141,297 100,064
Total assets 1,899,210 1,942,062 1,907,940
Current liabilities
Borrowings 10 (17,343) - (18,619)
Derivative financial instruments - (78) -
Trade and other payables (274,612) (300,364) (289,204)
Current tax liabilities - - (39)
Provisions (2,280) (1,382) (1,503)
Lease liabilities 11 (47,059) (47,629) (52,042)
Total current liabilities (341,294) (349,453) (361,407)
Non-current liabilities
Borrowings 10 (813,788) (779,540) (764,102)
Derivative financial instruments (7,999) (889) (8,063)
Deferred tax liabilities (58,531) (56,660) (57,211)
Lease liabilities 11 (342,052) (363,183) (355,161)
Total non-current liabilities (1,222,370) (1,200,272) (1,184,537)
Total liabilities (1,563,664) (1,549,725) (1,545,944)
Net assets 335,546 392,337 361,996
Shareholders' equity
Share capital 2,206 2,435 2,260
Share premium account 143,170 143,170 143,170
Capital redemption reserve 2,706 2,477 2,652
Other reserves(1) 94,459 183,571 123,644
Hedging reserve (3,616) 6,808 1,094
Currency translation reserve 2,975 (378) 3,819
Retained earnings(1) 93,646 54,254 85,357
Total shareholders' equity 335,546 392,337 361,996
(1)Restated 27 July 2025 see note 8.
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 26 January 2025 2,435 143,170 2,477 6,808 (378) 168,764 69,061 392,337
Total comprehensive income - - - (5,714) 4,197 - 33,465 31,948
Profit for the period - - - - - 35,767 35,767
Interest-rate swaps: amount reclassified to the income statement 10 - - - (5,714) - - - (5,714)
Currency translation differences - - - - 4,197 - (2,302) 1,895
Purchase of own shares and cancellation (175) - 175 - - (55,275) - (55,275)
Share-based payment charges - - - - - - 8,170 8,170
Tax on share-based payment - - - - - - 467 467
Purchase of own shares for share-based payments - - - - - - (10,999) (10,999)
Dividends 8 - - - - - - (4,652) (4,652)
As at 27 July 2025 2,260 143,170 2,652 1,094 3,819 128,296 80,705 361,996
Effect of restatement(1) (4,652) 4,652 -
Restated as at 27 July 2025 2,260 143,170 2,652 1,094 3,819 123,644 85,357 361,996
Total comprehensive income - - - (4,710) (844) - 19,897 14,343
Profit for the period - - - - - 19,385 19,385
Interest-rate swaps: amount reclassified to the income statement 10 - - - (4,710) - - - (4,710)
Currency translation differences - - - - (844) - 512 (332)
Purchase of own shares and cancellation (54) - 54 - - (20,161) - (20,161)
Share-based payment charges 3 - - - - - - 4,226 4,226
Tax on share-based payment 4 - - - - - - (273) (273)
Purchase of own shares for share-based payments - - - - - - (15,561) (15,561)
Dividends 8 - - - - - (9,024) - (9,024)
As at 25 January 2026 2,206 143,170 2,706 (3,616) 2,975 94,459 93,646 335,546
(1)Restated 27 July 2025 see note 8.
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.
The hedge reserve represents the fair value of cancelled swaps.
The currency translation reserve contains the accumulated currency gains and
losses on the long-term financing and balance sheet translation of the
overseas branch. The currency translation difference reported in retained
earnings is the retranslation of the opening reserves in the overseas branch
from local currency to sterling.
NOTES TO THE FINANCIAL STATEMENTS
( )
1. Revenue
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
25 January 26 January 27 July
2026 2025 2025
£000 £000 £000
Bar 634,289 588,626 1,218,543
Food 398,901 392,490 807,868
Slot/fruit machines 38,453 35,490 73,211
Hotel 11,349 11,202 22,390
Other 4,800 1,710 5,512
1,087,792 1,029,518 2,127,524
2. Property gains and losses & separately disclosed items
Unaudited Unaudited
26 weeks 26 weeks
ended ended
25 January 26 January
2026 2025
£000 £000
Operating items
Depreciation adjustment on impaired assets - (968)
Other 112 (838)
Total operating (loss)/profit 112 (1,806)
Property losses
Loss on disposal of pubs (578) (2,160)
(578) (2,160)
Other property gains/(losses):
Impairment of property, plant and equipment (5,223) (2,489)
Reversal of property, plant and equipment impairment 5,223 3,914
Impairment of right-of-use assets (726) (413)
Reversal of right-of-use assets impairment - 323
(726) 1,335
Total property losses (1,304) (825)
Other items
Finance income 4,774 11,107
4,774 11,107
Taxation
Tax effect on separately disclosed items (292) (1,131)
(292) (1,131)
Total separately disclosed items 3,290 7,345
2. Property gains and losses & separately disclosed items
(continued)
Depreciation adjustment on impaired assets
In the prior period, an adjustment of £968,000 for previously under charged
depreciation on impaired fixed assets has been recognised.
Other operating income and costs
Income of £112,000 (2025: costs of £59,000) have been recognised relating to
property income the company deems to be outside the usual course of business
and therefore classified as separately disclosed items.
In the prior period, further costs of £568,000 were recognised relating to an
employee settlement agreement, £139,000 due to historic VAT correction and
£72,000 relating to a contractual dispute with a large supplier which is now
resolved.
Property losses
Costs classified under the 'loss on disposal of pubs' relate to sites sold or
surrendered during the period.
Other property (gains)/losses
Property impairment relates to pubs which are deemed unlikely to generate
sufficient cash flows in the future to support their carrying value. In the
period, a total impairment charge of £5,223,000 (2025: £2,489,000) was
incurred in respect of property, plant and equipment and £726,000 (2025:
£413,000) in respect of right-of-use-assets, as required under IAS-36. There
were impairment reversals of £5,223,000 recognised in the period (2025:
£4,237,000)
Separately disclosed finance costs and income
An income of £64,000 (2025: income of £4,120,000) relates to the fair value
movement on interest rate swaps. Income of £4,710,000 (2025: income of
£6,987,000 relates to the amortisation of the hedge reserve to the P&L
relating to discontinued hedges. No hedge ineffectiveness has been recognised
in the period (2025: nil).
Taxation
The tax effect on separately disclosed items is a cost of £292,000 (2025:
cost of £1,131,000).
3. Employee benefits expenses
Unaudited Unaudited
26 weeks 26 weeks
ended ended
25 January 26 January
2026 2025
£000 £000
Wages and salaries 385,231 371,229
Employee support grants 36,312 23,307
Social security costs 7,039 6,396
Other pension costs 4,226 4,295
Share-based payments 432,808 405,227
385,231 371,229
Unaudited Unaudited
2026 2025
Number Number
Full-time equivalents
Head office 387 399
Pub managerial 4,687 4,686
Pub hourly paid staff 18,935 19,208
24,009 24,293
2026 2025
Number Number
Total employees
Head office 398 405
Pub managerial 4,809 5,005
Pub hourly paid staff 36,836 36,599
42,043 42,009
The totals above relate to the monthly average number of employees during the
period, not the total of employees at the end of the period.
Share - based payments Number of Shares
Outstanding at 27 July 2025 9,805,383
Granted during the year 2,419,843
Forfeited & Expired during the period (656,007)
Exercised during the year (1,593,691)
Outstanding at 25 January 2026 unaudited 9,975,528
4. Income tax expense
The taxation charge for the 26 weeks ended 25 January 2026 is based on the
profit before tax of £22.4m and the estimated effective tax rate before
exceptional items for the 26 weeks ended 25 January 2026 of 28.1% (July 2025:
29.3%). This comprises a current tax rate of 23.9% (July 2025: 14.5%) and a
deferred tax charge of 4.1% (July 2025: 14.8% charge).
The UK standard weighted average tax rate for the period is 25% (2025:25%).
The current tax rate is higher than the UK standard weighted average tax rate
owing to non-qualifying depreciation in the period.
Unaudited Unaudited Unaudited Unaudited Audited Audited
26 weeks 26 weeks 26 weeks 26 weeks 52 weeks 52 weeks
ended ended ended ended ended Ended
25 January 2026 25 January 2026 26 January 2025 26 January 2025 27 July 2025 27 July 2025
before after before after before after
separately separately separately separately separately separately
disclosed disclosed disclosed Disclosed disclosed disclosed
items items items Items Items Items
£000 £000 £000 £000 £000 £000
Taken through income statement
Current income tax:
Current income tax charge 5,357 5,633 5,410 12,178 11,823 23,178
Previous period adjustment - - - - - 216
Total current income tax 5,357 5,633 5,410 12,178 11,823 23,394
Deferred tax:
Origination and reversal of temporary differences 918 934 2,578 (2,518) 12,053 (525)
Prior year deferred tax credit - - - (541) - (1,518)
Total deferred tax 918 934 2,578 (3,059) 12,053 (2,043)
Tax charge 6,275 6,567 7,988 9,119 23,876 21,351
Taken through equity
Current tax (113) (113) (78) (78) (79) (79)
Deferred tax 386 386 234 234 (234) (234)
Tax (credit)/charge 273 273 156 156 (313) (313)
For the 26 weeks ended 25 January 2026 the Pillar Two income tax liability has
been calculated as nil.
The Company has applied the exception, as set out in the amendments to IAS 12
Income Taxes, to recognising and disclosing information about deferred tax
assets and liabilities related to Pillar Two income taxes.
5. Earnings 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 111,925,673 (2025: 122,316,552) less the weighted
average number of shares held in trust during the financial year of 7,992,202
(2025: 6,467,650). Shares held in trust are shares purchased by the company to
satisfy employee share schemes that have not yet vested.
Diluted 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 adjusted for both shares held in trust and the effects of
potentially dilutive shares. For the company, the dilutive shares are those
that relate to employee share schemes that have not been purchased in advance
and have not yet vested. In the event of making a loss during the year, the
diluted loss per share is capped at the basic earnings per share as the impact
of dilution cannot result in a reduction in the loss per share.
Unaudited Unaudited Audited
Weighted average number of shares 26 weeks 26 weeks 52 weeks
ended ended ended
25 January 26 January 27 July
2026 2025 2025
Shares in issue 111,925,673 122,316,552 120,183,464
Shares held in trust (7,992,202) (6,467,650) (6,898,529)
Shares in issue - Basic 103,933,471 115,848,902 113,284,935
Dilutive shares 6,684,947 5,007,628 6,489,689
Shares in issue - Diluted 110,618,418 120,856,530 119,774,624
Earnings / (loss) per share
26 weeks ended 25 January 2026 unaudited Profit/(loss) Basic EPS Diluted EPS
£000 pence pence
Earnings (profit after tax) 19,385 18.7 17.5
Exclude effect of separately disclosed items after tax (3,290) (3.2) (3.0)
Earnings before separately disclosed items 16,095 15.5 14.5
Underlying earnings before separately disclosed 16,095 15.5 14.5
26 weeks ended 26 January 2025 unaudited Profit/(loss) Basic EPS Diluted EPS
£000 pence pence(1)
Earnings (profit after tax) 32,226 27.8 26.7
Exclude effect of separately disclosed items after tax (7,345) (6.3) (6.1)
Earnings before separately disclosed items 24,881 21.5 20.6
Underlying earnings before separately disclosed 24,881 21.5 20.6
Free cash flow per share Free cash Basic free Diluted free
flow cash flow cash flow
per share per share
£000 pence pence
26 weeks ended 25 January 2026 unaudited (163) (0.2) (0.1)
26 weeks ended 26 January 2025 unaudited (499) (0.4) (0.4)
52 weeks ended 27 July 2025 56,642 50.1 47.3
6. Cash used in/generated from operations
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
25 January 26 January 27 July
2026 2025 2025
£000 £000 £000
Profit for the period 19,385 32,226 67,991
Adjusted for:
Tax (note 4) 6,567 9,119 21,351
Share-based charges (note 3) 4,226 4,295 12,466
Loss on disposal of property, plant and equipment 1,267 2,652 3,313
Disposal of capitalised leases & Lease premiums (339) (491) (162)
Net impairment (reversal)/charge (note 2) 726 (1,335) (4,939)
Interest payable & receivable 22,879 24,010 47,374
Lease interest (note 11) 6,978 7,254 15,260
Separately disclosed interest (note 2) (4,774) (11,107) (9,410)
Amortisation of bank loan issue costs 685 699 1,382
Depreciation and amortisation 57,522 56,044 114,365
Aborted properties costs 149 12 140
Foreign exchange movements (331) (596) 1,299
114,940 122,782 270,430
Change in inventories (435) (3,056) (2,654)
Change in receivables (1,949) (711) 56
Change in payables (10,414) (3,785) (13,392)
Cash generated from operations 102,142 115,230 254,440
7. Analysis of change in net debt
Unaudited Audited Unaudited
26 January Cash Other 27 July Cash Other 25 January
2025 flows changes 2025 flows changes 2026
£000 £000 £000 £000 £000 £000 £000
Borrowings
Cash and cash equivalents 75,158 (36,476) - 38,682 1,390 - 40,072
Other loan receivable - before one year 716 87 - 803 - - 803
Current net borrowings 75,874 (36,389) - 39,485 1,390 - 40,875
Bank loans - due after one year (681,612) 16,120 (659) (666,151) (49,000) (663) (715,814)
Other loan receivable - after one year 803 (479) 1 325 (325) - -
Private placement - after one year (97,928) - (23) (97,951) - (23) (97,974)
Non-current net borrowings (778,737) 15,641 (681) (763,777) (49,325) (686) (813,788)
Net debt (702,863) (20,748) (681) (724,292) (47,935) (686) (772,913)
Derivatives
Interest rate swaps asset - after one year 314 - (314) - - - -
Interest rate swaps liability - within one year (78) - 78 - - - -
Interest rate swaps liability - after one year (889) - (7,174) (8,063) - 64 (7,999)
Total derivatives (653) - (7,410) (8,063) - 64 (7,999)
Net debt after derivatives (703,516) (20,748) (8,091) (732,355) (47,935) (622) (780,912)
Leases
Lease assets - before one year 1,066 (481) 1,082 1,667 (532) 378 1,513
Lease assets - after one year 9,374 - (575) 8,799 - (1,114) 7,685
Lease obligations - before one year (47,629) 17,874 (22,287) (52,042) 22,803 (17,820) (47,059)
Lease obligations - after one year (363,183) - 8,022 (355,161) - 13,109 (342,052)
Net lease liabilities (400,372) 17,393 (13,758) (396,737) 22,271 (5,447) (379,913)
Net debt after derivatives and lease liabilities (1,103,888) (3,355) (21,849) (1,129,092) (25,664) (6,069) (1,160,825)
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. These are arrangement fees paid in respect
of new borrowings and are charged to the income statement over the expected
life of the loans.
The movement in interest-rate swaps relates to the change in the 'mark to
market' valuations for the year for swaps subject to hedge accounting.
8. Dividends paid and proposed
The board declared an interim dividend of 4.0p (2025: 4.0p) per share, to be
paid on 4 June 2026 to shareholders who are on the register of members at
close of business on 8 May 2026 (the Record Date).
Unaudited Unaudited Audited
26 weeks 26 weeks 52 weeks
ended ended ended
25 January 26 January 27 July
2026 2025 2025
£000 £000 £000
Declared and paid during the year
Dividends on ordinary shares
- final for 2024 12.0p - 14,807 14,807
- interim for 2025 4.0p - - 4,652
- final for 2025 8.0p 9,024 - -
9,024 14,807 19,459
Dividends in respect of the period
Interim dividend 4,411 4,652 4,652
Final dividend - - 9,024
4,411 4,652 13,676
Dividend per share (p) 4.0 4.0 12.0
Dividend cover 3.63 5.15 4.01
Dividend cover is calculated as diluted EPS before separately disclosed items
over dividend per share
For the year ended 27 July 2025, dividends have been reclassified from
retained earnings to other reserves within the statement of changes in equity
and the balance sheet.
9. Assets held for sale
These relate to situations in which the company had exchanged contracts to
sell a property, but the transaction is not yet complete. As at 25 January
2026, one investment property was classified as held for sale (2025: one
site).
Unaudited Unaudited Audited
25 January 26 January 27 July
2026 2025 2025
£000 £000 £000
Property, plant and equipment 133 1,500 2,137
10. Borrowings
Unaudited Unaudited Audited
25 January 26 January 27 July
2026 2025 2025
£000 £000 £000
Current (due within one year)
Interest accrual 17,343 - 18,619
Lease liabilities (note 11) 47,059 47,629 52,042
Total current borrowings 64,402 47,629 70,661
Non-current (due after one year)
Variable-rate facility 720,000 686,000 671,000
Unamortised variable-rate facility issue costs (4,186) (4,388) (4,849)
Private placement 98,000 98,000 98,000
Unamortised private placement issue costs (26) (72) (49)
Lease liabilities (note 11) 342,052 363,183 355,161
Total non-current borrowings 1,155,840 1,142,723 1,119,263
Total borrowings (excluding interest accrual & lease liabilities) 813,788 779,540 764,102
Total borrowings (excluding lease liabilities) 831,131 779,540 782,721
Total borrowings 1,220,242 1,190,352 1,189,924
Lease liabilities
The carrying amounts of lease liabilities and the movements during the period
are outlined in note 11.
Variable-rate facility
The secured revolving credit facility is £840 million (26 January 2025: £840
million). As at 25 January 2026, £720 million was drawn down (2025: £671
million). There are 14 participating lenders. The company re-financed in 2024.
The current facility of £840 million matures in June 2028. An extension
option was exercised in 2025 for £800m of the facility from June 2028 to June
2029. The company has hedged its interest-rate liabilities to its banks by
swapping the floating-rate debt into fixed-rate debt.
Unamortised bank loan issue costs
Unamortised bank loan issue costs relate primarily to refinancing, securing
and extending the variable-rate facility.
Private placement
The fixed-rate facility relates to senior secured notes of £98 million. The
notes mature in August 2026.
The company has an overdraft facility of £10 million, which is undrawn as at
25 January 2026.
11. Leases
The following amounts, relating to lease cash flows, were debited/(credited)
to the income statement during the period.
Rent Cash flow Analysis Unaudited Audited
25 January 27 July
2026 2025
£000 £000
Cash outflows relating to capitalised leases 29,921 54,940
Expense relating to short term leases 162 446
Expense relating to variable element of concessions 8,352 17,579
Total rent cash outflows for period 38,435 72,965
Cash inflows relating to capitalised leases (671) (1,372)
Income relating to lessor sites (1,370) (2,746)
Total rent cash Inflows for period (2,041) (4,118)
The balance sheet shows the following amounts relating to leases. These have
been reconciled in sections (a) to (d) below:
Unaudited Audited
25 January 27 July
2026 2025
£000 £000
Right-of-use asset(1) (a) 348,369 363,562
Non-current lease asset 7,685 8,799
Current lease assets 1,513 1,667
Total lease assets(2) (b) (d) 9,198 10,466
Current lease liability (47,059) (52,042)
Non-current lease liability (342,052) (355,161)
Total lease liability(1) (c) (d) (389,111) (407,203)
(1)Right-of-use assets and lease liabilities relate to leasehold properties
occupied by J D Wetherspoon.
(2)Lease assets relate to leasehold properties sublet by J D Wetherspoon.
11. Leases (continued)
(a) Right-of-use assets
Set out below are the carrying amounts of right-of-use assets recognised and
the movements during the period:
£000
Net book amount as at 27 July 2025 363,562
Additions 5,018
Disposals due to new subleases -
Remeasurement 1,403
Freehold reversions transferred to property, plant and equipment (1,336)
Disposals and derecognised leases (618)
Impact of lease adjustments 4,467
Amortisation and Impairment:
Provided during the period (19,691)
Exchange differences 31
Amortisation and Impairment (19,660)
Net book amount at 25 January 2026 unaudited 348,369
During the period, additions related to four new signed lease contracts and
one new signed sublease contract. Six leases were remeasured as a result of
changes in the agreed payments under the lease contracts and changes in the
lease terms.
Exchange differences occur as a result of translating the capitalised leases
in the Republic of Ireland.
Three freehold reversions took place in the period, there was one disposal.
For the 26 weeks ended 25 January 2026, lease additions totalled £5,018,000
and depreciation £19,691,000.
(b) Sublet lease assets
Unaudited Audited
25 January 27 July
2026 2025
£000 £000
Lease asset as at commencement of period 10,466 10,218
Additions - 1,399
Remeasurements of leases (10) (88)
Disposal of leases (726) -
Lease assets before income 9,730 11,529
Interest due in period 139 307
Total cash Inflow for leases in period (671) (1,370)
Net principal payments (532) (1,063)
Lease asset as at closing of period 9,198 10,466
The incremental borrowing rate applied to lease liabilities and assets was
1.94 - 7.93% depending on the lease's length.
Set out below are the carrying amounts of the lease assets recognised and the
movement during the period. The company sublets several of its leases, with
lease assets being the capitalised future rent receivable from sublet sites.
11. Leases (continued)
(c) Lease liability
Set out below are the carrying amounts of lease liabilities and the movements
during the period:
Unaudited Audited
25 January 27 July
2026 2025
£000 £000
Lease liability as at commencement of period (407,203) (418,242)
Additions (5,298) (22,016)
Freehold reversions transferred to property, plant and equipment 1,227 9,732
Remeasurements of leases (1,477) (16,123)
Disposals and derecognised leases 798 -
Exchange differences 39 75
Lease liabilities before payments (411,914) (446,574)
Interest payable in period
Interest expense within period (discounting element) (7,117) (15,567)
Total cash outflow for leases in period
Lease payment commitments for period 29,920 54,938
Net principal payments 22,803 39,371
Lease liability as at closing of period (389,111) (407,203)
Future rent payments could change as a result of open-market rent reviews or
options being exercised to terminate a lease early. Any changes in the minimum
unavoidable lease payments will be included as a remeasurement of the lease
liability.
(d) Lease maturity profile
Set out below are the remaining maturities (period between the balance sheet
date and the end of the lease) of the lease liabilities and lease assets,
which are undiscounted:
Lease liabilities Lease assets
Unaudited Audited Unaudited Audited
25 January 27 July 25 January 27 July
2026 2025 2026 2025
£000 £000 £000 £000
Within one year 47,059 52,042 (1,513) (1,667)
Between one and five years 155,852 163,954 (5,399) (5,599)
After five years 337,845 335,449 (3,920) (4,477)
Lease commitments payable/(receivable) 540,756 551,445 (10,832) (11,743)
Discounting (151,645) (144,242) 1,634 1,277
Lease liability/lease (asset) 389,111 407,203 (9,198) (10,466)
12. Related party disclosures
J D Wetherspoon is the owner of the share capital of the following companies:
Company name Country of incorporation Ownership Status
J D Wetherspoon (Scot) Limited Scotland Wholly owned Dormant
J D Wetherspoon Property Holdings Limited England Wholly owned Dormant
Moon and Spoon Limited England Wholly owned Dormant
Moon and Stars Limited England Wholly owned Dormant
Moon on the Hill Limited England Wholly owned Dormant
Moorsom & Co Limited England Wholly owned Dormant
Sylvan Moon Limited England Wholly owned Dormant
Checkline House (Head Lease) Limited Wales Wholly owned Dormant
JD Wetherspoon Europe Ltd Republic of Ireland Wholly owned Dormant
All of these companies are dormant and contain no assets or liabilities and
are, therefore, immaterial. As a result, consolidated accounts have not been
produced. The company has an overseas branch in the Republic of Ireland.
As of this year, a new wholly owned subsidiary, JD Wetherspoon Europe Ltd, was
registered in the Republic of Ireland. As at 25 January 2026, the company is
dormant.
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