Wetherspoon profits hit by costs and business rates rises

JD WETHERSPOON shares slumped yesterday after the pub firm laid bare the scale of the financial hit from November's tax-raising Budget.

- MAISIE GRICE

The FTSE 250 member said cost rises across energy, wages, repairs and business rates had put up costs by a staggering £45 million in the 25 weeks to mid-January.

That would imply a cost rise of as much as £94m over the course of a year.

The firm, which is one of Britain's biggest pub chains with nearly 800 sites, warned profit was likely to be lower than in the previous financial year.

“We are pleased with sales growth [but] costs have been higher than anticipated,’ said founder and executive chairman Tim Martin.

Wetherspoon shares sank 6.7%to 688.50 pence in early morning trading following the chain’s profit warning.