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Smoking and football woes at JD

Companies: JDW    PDH   
13/03/2006

Spring and summer loom, and pubs chain group JD Wetherspoon has delayed plans to bring in a complete smoking ban at its pubs in England. The company, which served up a 21 per cent spike in profits to £27.4 million for the half to 22 January, had planned to introduce the measure in May, but will now wait until the Government’s smoking ban takes effect in the middle of 2007.

Analysts said belt-tightening measures, such as cheaper glasses and wage control, were behind the profits improvement. However whilst total sales rose one per cent to £406.3 million, revenues from non-smoking pubs fell 7.6 per cent, as the outlets sold less beer but more food.

Chairman Tim Martin is also cautious about second half prospects given the impact of impending smoking bans, and the World Cup in Germany this summer, since most Wetherspoon pubs don’t have TVs and don’t play music. Keen football supporters may head for other venues.

Elsewhere within the sector, shares in Parkdean Holidays perked up by 2p to 251p — versus 52-week peaks and troughs of 266p and 192.5p — on upbeat AGM news, and reaffirmation that possible bids for the company continue to bubble away behind the scenes.

Encouragingly, chairman Graham Wilson reported that as of 26 February, holiday hire revenues were 11.1 per cent ahead of last year (at the equivalent date for the same 20 holiday parks), reflecting ‘a return to a more normal booking pattern than experienced in 2005’.


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