UK pub operator JD Wetherspoon continues to seek buyers for 10 trading pubs in the group some nine months after it put its regional Irish portfolio of pubs on the market with a guide price of €10 million.
On Wednesday the pub giant reported a 5.5 per cent increase in sales over the 10-week period to the end of last Friday compared with the same period last year.
Wetherspoon said it had surrendered the lease or sold some 26 premises over the period with a further 10 trading pubs still on the market or under offer.
Last October, Wetherspoon confirmed it was seeking a buyer for its regional portfolio in the Republic comprising premises in Cork, Waterford, Galway and Carlow. The premises were being offered for sale in one or separate individual lots, guiding at €10 million for the entire portfolio.
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Three of the properties in the portfolio were trading at the time of the announcement: An Geata Arundel on Arundel Square in Waterford; The Linen Weaver on Paul Street in Cork, and The Tullow Gate on Tullow Street in Carlow.
On Wednesday, the group, which currently has an estate of 801 pubs, said it has largely disposed of venues which are “smaller and older”, or where it has another site in close proximity.
At its peak the pub firm had around 950 venues in 2015 but has never reached its stated target of 30 pubs in the Republic. Earlier this year the company said it still hoped to meet long-term ambitions of growing to 1,000 venues despite shrinking the size of its estate.
The company has disposed of some venues amid efforts to reduce its debt burden. On Wednesday Wetherspoon said it expects its net debt to stand at around £670 million at the end of the financial year.
In a statement Wetherspoon chairman Tim Martin said trading conditions remain challenging despite a sharp recovery in pub sales since the pandemic. “Sales per pub are approximately 21 per cent higher than pre-pandemic levels, which has helped to compensate for the very substantial increase in costs. For example, compared to the 2019 financial year, labour in this financial year has increased by approximately £164 million, energy by £28 million, repairs (also affected by labour costs) by £38 million and interest (excluding IFRS 16 interest) by £16 million.”
However, Mr Martin said Wetherspoon’s total sales are at “record levels” despite having fewer venues than it did a year ago, and the group expects profits to be in line with expectations this year. – Additional reporting PA
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