Wetherspoon profits hit by costs and business rates rises

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

- MAISIE GRICE

Pub giant JD Wetherspoon says rising cost of energy, wages, repairs and business rates hit its profits

(Victoria Jones)

The FTSE 250 member said cost rises across energy, wages, repairs and business rates had put up costs by a staggering £45m 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.