Full-year revenue came in at £2.2bn (as expected) reflecting like-for-like sales growth of 4.2%.
Underlying operating profit fell 17.9% to £120mn (£122mn expected) as higher costs weighed on margins.
Free cash flow increased by 76.9% to £100.1mn, although much of the improvement came from payment timings. Net debt, including leases, was broadly flat at £1.1bn.
The first nine weeks of the new year saw like-for-like sales growth of 8.6%, helped by favourable weather. For the full financial year, the company expects underlying pre-tax profit in line with market expectations of £74mn.
The board announced a final dividend of 8.0 pence per share, taking the total dividend to 12.0 pence per share.
The shares were up 8.1% in early trading.
Our view
HL view to follow.
JD Wetherspoon key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.