Wetherspoon’s Tim Martin warns of further red tape in the pub sector

JD Wetherspoon boss Tim Martin has criticized ‘somewhat silly’ proposals from academics to serve beer in two-thirds pint quantities as he called for no further regulation to be introduced in the under-pressure pub sector.

It came as the pub giant posted a recovery in profits as rising demand offset the shrinkage of the group’s pub estate.

Mr Martin, chairman of Wetherspoon, said further regulations proposed to curb alcohol consumption are likely to lead to more Britons drinking at home or even in parks rather than in pubs.

He criticized a study published last month by academics at the University of Cambridge, which called on the government to stop serving beer in pints and consider using two-thirds glasses, known as schooners.

Martin said the proposal was “somewhat foolish” and suggested that the use of schooners in Australia was not associated with “any appreciable reduction in consumption”.

He added: ‘Common sense suggests that, due to human nature, reducing the size of glasses is unlikely to reduce alcohol consumption in pubs, nor would it have any effect on drinks bought in supermarkets. unless pack sizes in supermarkets are also, unrealistically, reduced. ‘.

Martin also responded to speculation that the government could restrict the opening hours of pubs and hospitality venues. Labor ministers have since denied that trading hours could be cut.

“None of these proposals seem to pass the test of common sense,” the bar owner said.

Martin’s comments emerged as Wetherspoon revealed pre-tax profits had risen 73.5 per cent to £73.9 million for the year to July 28, compared to the previous year.

This marked a further recovery in profits for the café business, but remained below pre-pandemic levels.

Sales grew 5.7 percent to £2.04 billion, driven by a 7.6 percent increase in like-for-like sales.

Wetherspoon posted a 4.9 percent increase in like-for-like sales in the nine weeks to September 29, half the growth of 9.9 percent in the same period last year.

Dividends are back on the menu for shareholders after the pub chain announced it will pay out 12p per share on November 28.

This is the same as the 2019 payment and reflects the group’s improved trading and financial position following a long period of pandemic disruption.

Looking ahead, Martin said: ‘The company currently expects a reasonable result for the current financial year, subject to our future sales performance.’

Charlie Huggins of Wealth Club said: ‘Wetherspoons has had a good year, with a significant recovery in sales and profits and a return to the dividend register.

“With many pub and restaurant businesses struggling in the current environment, this is an impressive achievement.”

Wetherspoon shares rose 0.48 percent or 3.5 cents to 728.00 cents on Friday.

Richard Hunter, head of markets at Interactive Investor, said: ‘The share price has yet to reach the previously heady levels seen before the pandemic, when shares peaked at almost £17 in December 2019, compared to current levels around £7. 30. .

‘There has been some limited progress recently, with the price up 9 per cent over the past year, which compares with a gain of 18.6 per cent for the broader FTSE 250.

‘Despite this rebound, the shares are still down 32 percent over the past two years, leaving the valuation slightly lower than the long-term average, which in turn could further improve the outlook.

‘The market consensus on the stock as a strong position reflects some belief in Wetherspoon’s ability to continue to fight its corner, while also adding some caution to a challenging mix.’