Wetherspoon profits jump as Covid recovery continues

Pre-tax profits leapt from £4. 6m to £36m in the first six months of the financial year. The biggest sellers for the chain, which has 814 pubs, were coffee and Pepsi. Shares in the company dropped 6% as a result.

Wetherspoon has cut its number of pubs from 955 a few years ago, since when sales per pub have increased by about 50%. But profits growth was in comparison with a low base, says Derren Nathan, head of equity research at Hargreaves Lansdown. He said there was little in the statement to help see where an improvement might come from. Mr Martin highlighted the fact that the tax burden on pubs and restaurants is much higher in the UK than it is on supermarkets.

He called for tax equality to revitalise High Streets and town centres. The VAT rate on restaurant and food sales is far lower, typically at 5-10%.