JD Wetherpoon, a major pub operator in the UK, is still actively seeking purchasers for 10 of its operating pubs, approximately nine months after it initially listed its regional Irish portfolio of pubs for approximately €10 million.
On Wednesday, the pub conglomerate reported a 5.5% increase in sales compared to the same 10-week period last year, which ended last Friday.
Over the 10-week period, Wetherspoons has either relinquished the lease or sold approximately 26 venues, with another 10 operating pubs still available for purchase or already under offer.
As of last October, Wetherspoons confirmed it was searching for a buyer for its regional portfolio in the Republic of Ireland, which includes venues in Cork, Waterford, Galway, and Carlow. This portfolio is available for sale as a whole or as separate individual lots, with a guide price of €10 million for the complete portfolio.
During the announcement, three of the portfolio’s properties were in trading or operation, which include An Geata Arundel in Arundel Square, Waterford; The Linen Weaver on Paul Street, Cork, and The Tullow Gate on Tullow Street, Carlow.
On Wednesday, the pub group, which currently owns an estate of 801 pubs, stated it has primarily sold off venues described as “smaller and older”, or situations where they have another nearby location.
The pub company reached its peak with approximately 950 venues in 2015, but it never reached its goal of owning 30 pubs in the Republic of Ireland. Notwithstanding a reduction in its pub estate’s size, the company affirmed earlier this year that it maintains its long-term target of expanding to 1,000 venues.
As part of an initiative to decrease its debts, the firm has offloaded some of its properties. On Wednesday, Wetherspoons announced it anticipates its net debt to be about £670 million by fiscal year end.
According to a communique, the chairperson of Wetherspoon described the current business environment as difficult even though pubs’ sales have seen a significant bounce back post-pandemic. The revenues per pub have surged by an estimated 21 per cent compared to pre-COVID numbers, which has mitigated the substantial rise in expenses. To explain, there has been a steep increment in labour costs by an approximate £164 million, energy by £28 million, repairs (also impacted by increasing labour costs) by £38 million, and interest (with IFRS 16 interest excluded) by £16 million, when matching parameters with the 2019 financial year.
Despite operating with fewer venues than the previous year, Wetherspoon holds record-breaking total sales. Profits for this year are forecast to meet the group’s expectations, Mr Martin, the chairman, revealed. The information was further extended by PA.