JD Wetherspoon confident of prospects in current year

UK Pubs group JD Wetherspoon PLC (LSE: JDW) said that, with continuing sales growth and an increased opening programme, it remains confident of the company's prospects for the financial year ending 25 July 2010.

The comments came in the group’s pre-close trading update ahead of its first-half to January 24 2009 results. In the year to date, like-for-like sales increased by 0.1 percent and total company sales, including recently opened pubs, increased by 4.1 percent.

In the first 12 weeks of the second quarter, to January 17 2010, like-for-like sales decreased by 0.3 percent and total sales increased by 3.7 percent, with the last two weeks being affected by adverse weather conditions.

JD Wetherspoon expects operating margins for the first half 2010 to be in line with the same period last year, with the benefit from lower energy costs being off-set by a higher level of repairs expenditure.

The company is in discussions with the existing banking syndicate and potential new banks regarding the refinancing of its main £435 million facility, which expires in December 2010, and these discussions are progressing well.

It has reduced its borrowings by approximately £50 million over the last twelve months, after accounting for the opening of 33 new pubs.

The company has opened 15 new pubs so far this financial year and ceased trading in 2 pubs, bringing the current number of pubs to 744.  It currently anticipates opening approximately 50 new pubs in this financial year.  http://www.proactiveinvestors.co.uk/companies/news/12394/jd-wetherspoon-confident-of-prospects-in-current-year-12394.html