Bitter taste for Wetherspoon

PUBS group JD Wetherspoon today reported a steady-as-she-goes update on trading but outspoken chairman Tim Martin returned to his soapbox to attack Government red tape and taxes.

Like-for-like sales in August progressed by 3.5% against a year earlier - flat on July's figures despite the sweltering weather that many businesses say drove people out of town centres.

But Martin said: 'Profits, both in the current year and next, are likely to be impacted by regulatory and employee cost increases.'

Excise duty increases alone will cost the group an extra £2m this year, while an increase on stamp duty for new leasehold properties will strip £500,000 from the bottom line each year.

Pubs now pay 40% of their turnover in taxes, Martin claimed. He said the uncertainty created by increased red tape and taxation meant the group was reining-in expansion.

In the year to 27 July, Wetherspoon opened 45 pubs, bringing its total estate to 638. Pre-tax profits came in at £52.5m against £53.6m a year earlier after the group suffered a near-£4m hit from the loss on selling 18 pubs. Turnover was £730m against £601.3m . The total dividend rises 10% to 3.54p. The shares fell 17 1/2p to 237p.