Tim Martin: 'Different government, same attitude towards pubs'

Announcing another record breaking trading performance by his company, JD Wetherspoon chairman Tim Martin condemned what he called the "draconian" powers being lined up against the pub sector.

Martin, no fan of the last Labour government and its taxation policies, warned that the present administration seemed determined to proceed on the same path, especially in regard to legislation impacting pubs.

The police, he said, "are to be given further powers to close pubs, even though such powers seem not to have been requested by them.

"The authorities currently have ample powers for dealing with the relevant issues. In addition a draconian reduction of the ability of pubs to appeal in a number of important circumstances and a late night levy, in effect another tax on pubs, are proposed."

Martin said "serious thought" was required on the part of ministers "to reverse the trend towards job and social destruction resulting from a continuation of the policies of the previous government".

In particular, taxes paid by pubs and restaurants should be brought in line with those paid by supermarkets if jobs in the pub trade were to be protected, he added, noting that in France, where VAT for bars had been cut to 5.5 per cent, more tax had been raised.

The Wetherspoon chairman launched his attack on the coalition government as he revealed the pub group had seen total turnover for the year to July 25, 2010, rise 4.3 per cent to £996.3m, with like-for-like sales up 0.1 per cent.

Operating profits rose 3.1 per cent to £100m, with pre-tax profits up 7.3 per cent at £71m, in line with most City forecasts.

Earnings per share rose 7.1 per cent to 34.9p.

Martin said in the six weeks to 5 September 2010, like-for-like sales increased by 1.5 per cent and total sales by 7.6 per cent.

He said Wetherspoon had opened 47 pubs, 15 of which were freehold, during the financial year, three shy of its declared target of 50 new sites.

Most were in former pubs, reflecting the group's current habit of identifying existing pubs, rather than vacant retail outlets, as venues for its on-trade activities. Development costs were marginally higher than the previous year, at £860,000 per pub.

The group plans to open a similar number of pubs in the current financial year as part of its five year plan to add 250 sites to its estate, which currently runs 775 sites.

Martin said the move to open Wetherspoon's pubs at 7am every day was paying off in terms of breakfast sales, which were now running at 400,000 a week. The group's pubs also sold 600,000 coffees each week, he added.