JDW openings will stick at 30 a year

New JD Wetherspoon openings at about 30 per annum is likely to be the optimum level for a number of years, chief executive John Hutson has indicated.

He said: "We can open 30 a year out of cash flow with no new borrowings. It doesn't add to our infrastructure costs and seems about the right number - we can pick our sites more carefully. If we don't find 30 sites a year, it's not a problem. But if we do our jobs well there's no reason why we can't get up to 1,000 sites or more."

The Wetherspoon opening programme has been revised upwards after good results at its non-smoking pubs.

Finance director Jim Clarke said: "As we get more comfortable with the smoking ban, we think there are still more investment opportunities out there. Non-smoking pubs are attracting customers who wouldn't necessarily have used pubs before. Food, wine and soft drinks sales all go up. The big question is whether we can hang on to these customers."

Clarke said trading has been "tough" at Wetherspoons' 61 smoke-free pubs south of the border, but sales are picking up. "I'm encouraged by what's happening to them," he said.

Overall like-for-like sales were up 5.5% in the 12 weeks to 21 January, and 7.5% in the 25 weeks to 21 January.

Clarke said sales over Christmas were strong - "a continuation of the momentum from last year" - although trade on New Year's Eve suffered because people tend to visit pre-arranged venues that charge on the door.

Margins were ahead of last year's because prices have increased by an average of 3% for premium products and 2.5% for standard. Strong like-for-likes compensated for higher energy and labour costs, the firm said. Sales in January have shown slower growth.