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Saturday, November 28, 2020

J.D. Wetherspoon swings to a pre-tax loss of £94.8 million in fiscal 2020.

  • J.D. Wetherspoon swings to a pre-tax loss of £94.8 million in fiscal 2020.
  • The pub operator reports £1.26 billion of revenue in the full financial year.
  • The British firm says comparable sales were 15% down in fiscal 2021 to date.

J.D. Wetherspoon plc (LON: JDW) said on Friday that it concluded fiscal 2020 with a pre-tax loss due to the Coronavirus pandemic that has so far infected more than 670 thousand people in the United Kingdom and caused over 43 thousand deaths. In separate news from the UK, Jupiter Fund Management plc also published its third-quarter trading statement on Friday.

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For fiscal 2021, J.D. Wetherspoon reported a 15% decline in its comparable sales in the first 11 weeks. In the financial year that concluded on 26th July, the pub operator posted £94.8 million of pre-tax loss. In comparison, it had registered £95.4 million of profit in the previous year.

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J.D. Wetherspoon reports £1.26 billion of revenue in fiscal 2020

In terms of revenue, the British company recorded £1.26 billion in fiscal 2020 versus the year-ago figure of a much higher £1.82 billion. The company blamed the COVID-19 crisis and associated lockdowns for its dovish annual financial performance. In an earlier report published in August, J.D. Wetherspoon said its sales were still down 16.9% on a year over year basis.

On an adjusted basis, J.D. Wetherspoon reported £34.1 million of pre-tax loss in fiscal 2020 as compared to £102.5 million of profit in the previous year. The company’s board refrained from declaring a final dividend on Friday in a bid to cushion the economic blow from the ongoing health crisis.

The Watford-based company refrained from giving detailed guidance for the full fiscal 2021. As per FactSet, however, its pre-tax profit in the current year is expected to print at £38.6 million on an adjusted basis. Full-year revenue, as per the analysts, is expected around £1.58 billion.

J.D. Wetherspoon’s performance in the stock market

J.D. Wetherspoon was reported 1.3% down in premarket trading on Friday. Shares of the company slid close to 10% on market open to hit an intraday low of 824 pence per share. On a year to date basis, the British pub operator is nearly 50% down. Learn more about why do prices rise and fall in the stock market.

In March, the COVID-19 restrictions had pushed the stock down to as low as 560 pence per share. J.D. Wetherspoon performed fairly upbeat in the stock market last year with an annual gain of about 50%. At the time of writing, it has a market capitalisation of approximately £1 billion and a price to earnings ratio of 14.31.

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