MBO is not an option says Martin

JD Wetherspoon founder Tim Martin has insisted that there is no chance of the company being taken private in a management buyout.

Martin said the "hundreds of millions" of pounds of additional debt the company would have to carry on its balance sheet would preclude the move.

"We are not going to be one (of the company's going private)," he said. He also insisted that the company's decision to ban smoking early was one that he could not see being reversed ­ even if it hits sales.

"Never say never but in a way it is irreversible, because smoking is going to be banned anyway. We've just got to make it work," he said.

Martin also claimed that staff bonuses at the company are now better than at the John Lewis department store business.

It was revealed last week that John Lewis staff would earn an average of £1,683 in bonuses each as a result of strong profits.

Martin said Wetherspoon managers earned an average of £4,900 in bonuses each last year. Shift managers ­ of which there are four per pub ­ earned an average of £1,700 each.

Bar staff earned an average of 34p per hour extra in bonuses, which works out at an extra £707.20 for a full year assuming a 40-hour week.

Staff earned £7.3m in bonuses in the first half year, compared to £22.8m in profits. "It's the best bonus scheme in the licensed trade," said Martin.

l JDW stubs out five smoking pubs ­ p15