JD Wetherspoon "more positive" on future trading prospects

Shares in JD Wetherspoon shot up 16p to 462p this morning, after the managed pub group suggested its prospects for the year were now better than previously thought.

In a third quarter trading update issued today the group said turnover, profit and cash flows had been "resilient" during the period.

"The combination of improved costs, lower interest charges and reduced capital expenditure on new openings is anticipated to be beneficial for future prospects," it said.

"We are therefore slightly more positive regarding the company's prospects for the current financial year."

In its update Wetherspoon said like-for-like sales for the 13 weeks to April 26, 2009, rose 0.5 per cent, with total sales up 4.7 per cent.

In the year to April 26 - 39 weeks - like-for-like sales were up 1.4 per cent and total company sales rose 5.9 per cent.

High levels of marketing activity in recent months, including what Wetherspoon called its busiest ever beer festival, made exact comparisons difficult, the group said.

The number of £2.99 meals sold was continuing "at high levels", it added.

Margins were maintained at around the 10 per cent level reported in March this year, boosted in part by stronger cost controls.

The group said its borrowings were £30m lower than at the same time last year, and £18m lower than at the time of the interim results announcement in March.

Wetherspoon said it had opened 28 new pubs in the current financial year and was on track to unveil a total of 38 new sites by the year end.