A qualified chartered accountant, Herring will also become chair of the audit committee.
Commenting on the appointment, JDW chairman and founder, Tim Martin, told The Morning Advertiser (The MA): “While working at Kleinwort Benson, John was a key figure in our 1992 stock market flotation at a share price, adjusted for share splits, of 32 pence. Shareholders will hope that John’s magic dust will create a similar percentage increase in sales, profits and the share price in the next 33 years. I’ve promised him a free pint of Abbot if we hit that target.”
Previous experience
Herring began his career in corporate finance at Kleinwort Benson in 1986, where he was involved in several London Stock Exchange IPOs, including JDW’s own flotation.
He later established a private equity advisory business and has held a number of non-executive roles across public and private companies, including JDW from 1997 to 2011, Hawksmoor and sandwich brand Eat. He is currently non executive chair of Ceiba Investments.
The appointment comes as JDW continues to report resilient sales against a challenging cost environment. In its most recent trading update, chairman Tim Martin said like for like sales for the first 14 weeks of the financial year were up 3.7% year on year, with bar sales up 5.7%, food up 0.9% and fruit machines up 8.9%. Total sales rose 4.2%.
Inflation concerns
Martin reiterated concerns around labour and energy inflation, warning that rising wage costs were “dramatically widening the pricing differential between pubs and supermarkets”. He also highlighted the structural impact of VAT inequality on food sales and the long-term decline in draught beer volumes.
Despite the uncertainty, the group last week announced plans to slash drinks prices in its January sale including a pint of Worthington’s beer at 99p in more than 600 of its pubs. The discount is running until this Thursday (15 January) and includes various drinks, while food will also be priced lower than usual.
the group has continued to invest in new openings and formats. Four pubs have opened year to date, with 15 planned for the full year, alongside rapid expansion of its franchised estate. The company expects to open 12 more franchised venues this year.
The group is also preparing to open its first overseas pub at Alicante Airport this month, with further international sites under consideration as part of its long term growth strategy.
