JD Wetherspoon posts record annual profits after pub group employs more than 28,000 staff on controversial zero-hour contracts
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JD Wetherspoon posted record annual profits after it emerged the pub group employs more than 28,000 staff on controversial zero-hour contracts.
The firm, which has 800 pubs focused on low prices, has thrived during the downturn.
It said staff get holiday pay and stock despite only being paid the hours they worked.
Drinking to success: JD Wetherspoon, which has 800 pubs focused on low prices, has thrived during the downturn
Drinkers flocked to its budget pubs, driving underlying sales up 5.8 per cent and total sales up 9.3 per cent to £1.1bn.
Pre-tax
profit fell to £57.1m from £58.8m after a series of one-off items. This
included writing down the value of property and a loss connected to a
disposal.
Once the £19.8m exceptional item was removed pre-tax profit increased to a record £76.9m from £72.3m boosted by promotions such as its cut price ‘curry club’ and ‘beer and a burger’ offers.
Founder
chairman Tim Martin said the firm will open its first pub in the
Republic of Ireland this year with plans for another 30. Underlying
sales in the first six weeks of its new financial year rose 3.6 per
cent, although the firm said growth only grew 2.5 per cent in the last
two weeks which ‘may be an indicator for future sales growth’.
Martin took another pop at the Government over what he sees as an unfair tax regime.
‘It
is unsustainable to have far higher taxes for the pub industry than
those for supermarkets,’ he said. ‘Already 10,000 pubs have closed and
many other are suffering through insufficient investment. In particular
there should be VAT equality for pubs, restaurants and supermarkets.’
The shares rose 17p to 752p.
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