JDW Wetherspoon ( J.d.) Plc

Corporate governance

 

Wetherspoon has been a strong critic of the composition of the boards of UK-quoted companies.

 

Directors of UK PLCs have, on average, relatively little experience of the companies they govern, due to the "nine-year rule", which limits their tenure, combined with the fact that most directors are part-time, and have never worked for the company in question, on a full-time basis.

 

In addition, those responsible for overseeing governance, among institutional shareholders, are often responsible for several hundred companies each, making genuine board engagement impossible, and thereby necessitating a "tick-box" approach, which is the antithesis of good governance.

 

The combination of arbitrary rules, the preponderance of part-time directors and overloaded institutional governance departments means that bureaucracy and virtue-signalling, rather than innovation and efficacy, dominate most UK PLC boardrooms.

 

In appendix 3 below, further details are provided on this issue from our FY23 annual report.

 

Further progress

 

In the period Wetherspoon awarded £20.4 million of bonuses and free shares to employees, of which 97.9% was paid to staff below board level and 86.3% was paid to staff working in our pubs.

 

The average length of service of a pub manager increased to 15.2 years, and of a kitchen manager is 11.2 years.

 

Wetherspoon has been recognised by the Top Employers Institute as a Top Employer United Kingdom 2025. It is the 20th time that Wetherspoon has been certified by the Top Employers' Institute.

 

251 pubs feature in the 2025 Good Beer Guide, an increase of 15 compared to last year.

 

In November 2023, Wetherspoon was voted the Best Airport Retailer for Food & Beverages at the British Travel Awards.

 

In August 2024, our national distribution centre in Daventry, operated by DHL, had its 20th anniversary. 27 of the original colleagues from 2004 are still working there. In addition, we opened a secondary warehouse in Rugby which, as well as acting as a business continuity solution, will allow for further company volume growth.

 

The company has an extensive training programme for its employees, including 'kitchen of excellence' training, as well as cellar, dispense and coffee academy training.

 

Wetherspoon has recently been included in the Financial Times 'FT - Statista Leaders 2025' report, which highlights Europe's leading companies in diversity and inclusion.

 

The company's UK nominated charity is Young Lives vs. Cancer (previously CLIC Sargent). It supports children and young people with cancer. Since our partnership began in 2002, Wetherspoon has raised over £24.4 million for the charity, thanks to the generosity and efforts of our customers and employees.

 

677 of the company's washrooms have been awarded the highest platinum or diamond statuses by the National Loo of the Year awards. The awards are aimed at highlighting and improving standards of away from home washrooms across the UK. The washrooms are judged against numerous criteria, including décor and maintenance, cleanliness, accessibility, handwashing and drying equipment and overall management.

 

In January 2024, the company was awarded the highest rating by the Sustainable Restaurant Association - the world's largest accreditation scheme for pubs and restaurants, see https://www.jdwetherspoon.com/wp-content/uploads/2025/03/pages-for-interim-report.pdf.

 

Wetherspoon came second in the 2024 'Out to Lunch' league table, compiled by the Soil Association. Restaurants and pubs are judged and scored on a range of criteria: family friendliness, healthy options, food quality, value, sustainability and ingredients' provenance.

 

Wetherspoon is seeking to extend the appeal of its menu. For example, 41% of the dishes on the menu that is available in the majority of pubs are vegetarian, 14% are vegan and 27% are under 500 calories.

 

Cod and haddock are sourced from fisheries which have been certified as well-managed and sustainable fisheries.

 

 

Wetherspoon uses 100% UK and Irish beef on its food menu, traceable from farm to fork.

 

100% of the eggs served on the menu are free range. All shell eggs are certified with the British Lion quality mark and are RSPCA assured, ensuring the highest standards of animal welfare.

 

Guinness have a 'Quality Accreditation Programme'. Independent assessors review 17 aspects of quality. 100% of pubs passed their Guinness accreditation.

 

Since 2008, Wetherspoon has invited brewers from overseas to feature their ales in its real-ale festivals. To date, these brewers have contributed 235 ales, from 147 breweries in 29 countries. In addition, the company works with over 250 UK brewers, mostly small or "micro" brewers.

 

Since 1999, Wetherspoon has worked with independent real-ale quality assessor Cask Marque to gauge the quality of ale being served in its pubs. Cask Marque carries out an 11-point audit covering stock rotation, beer line cleanliness, equipment maintenance, glasswashing cleanliness and hygiene. A star rating is awarded from 1 to 5, with a target of 4 to 5 stars for all pubs. Cask Marque state that 66% of UK pubs achieve 4 or 5 stars. 98.1% of Wetherspoon pubs have achieved 4 or 5 stars.

 

 

Sustainability, recycling and the environment

 

Wherever possible, Wetherspoon separates waste into nine streams: food waste; glass; tins/cans; cooking oil; paper/cardboard; plastic; lightbulbs; waste electrical and electronic equipment (WEEE); general waste and from December 2024 - Tetra Pak cartons

 

Wetherspoon's national distribution centre, at Daventry, also includes an in-house 24-hour recycling centre, with a dedicated workforce and specialist equipment. When making deliveries to pubs, lorries collect recycling, used cooking oil and reusable items for return to the recycling centre - so reducing the company's carbon footprint from reduced road miles.

 

4,562 tonnes of recyclable waste were processed in the first six months of this year at our national recycling centre. In addition, food waste is sent for 'anaerobic digestion' and used cooking oil is converted to biodiesel for agricultural use.

 

Automated meter readers for electricity and gas, which provide half hourly consumption data, are installed in the majority of pubs to facilitate energy consumption reporting. We are now also commencing a rollout of 100 automated meter readers for water in our highest consuming sites.

 

Technologies such as Voltage Optimisation and solar are being trialled.

 

 

 

 

 

Bonuses and free shares

 

As indicated above, Wetherspoon has, for many years (see table below), operated a bonus and share scheme for all employees. Before the pandemic, these awards increased, as earnings increased for shareholders.

 

Financial year	Bonus and free shares	Profit/(loss) after tax1	Bonus and free shares as % of profits
	£m	£m
2008	16	36	45%
2009	21	45	45%
2010	23	51	44%
2011	23	52	43%
2012	24	57	42%
2013	29	65	44%
2014	29	59	50%
2015	31	57	53%
2016	33	57	58%
2017	44	77	57%
2018	43	84	51%
2019	46	80	58%
2020	33	(39)	-
2021	23	(146)	-
2022	30	(25)	-
2023	36	34	106%
2024	49	59	83%
2025 H1	20	25	80%
Total2	467	838	55.7%

 

¹(IFRS-16 was implemented in the year ending 26 July 2020 (FY20). From this period all profit numbers in the above table are on a Post IFRS-16 basis. Prior to this date all profit numbers are on a Pre IFRS-16 basis.

² Excludes 2020, 2021 and 2022.

 

Length of service

 

The table below provides details of the improved retention levels of pub and kitchen managers, key areas for any pub company, in the last decade.

 

Financial year	Average pub manager length of service	Average kitchen manager length of service
	(Years)	(Years)
2014	10.0	6.1
2015	10.1	6.1
2016	11.0	7.1
2017	11.1	8.0
2018	12.0	8.1
2019	12.2	8.1
2020	12.9	9.1
2021	13.6	9.6
2022	13.9	10.4
2023	14.3	10.6
2024	14.9	10.9
2025 H1	15.2	11.2

 

 

 

 

 

 

 

 

 

 

Food hygiene ratings

 

Wetherspoon has always emphasised the importance of hygiene standards.

 

We now have 734 pubs rated on the Food Standards Agency's website (see table below). The average score is 4.99, with 99.2% of the pubs (all but 6) achieving a top rating of five stars. We believe this to be the highest average rating for any substantial pub company.

 

In the separate Scottish scheme, which records either a 'pass' or a 'fail', all of our 55 pubs have passed.

 

Financial Year	Total pubs scored	Average rating	Pubs with highest rating %
2014	824	4.91	92.0
2015	858	4.93	94.1
2016	836	4.89	91.7
2017	818	4.89	91.8
2018	807	4.97	97.3
2019	799	4.97	97.4
2020	781	4.96	97.0
2021	787	4.97	98.4
2022	775	4.98	98.6
2023	753	4.99	99.2
2024	735	4.99	99.6
2025 H1	734	4.99	99.2

 

 

Property litigation

 

Some years ago, Wetherspoon took successful legal action for fraud against its own property advisors Van de Berg, who were found, by the court, to have diverted freehold properties to third parties, leaving Wetherspoon with an inferior leasehold interest.

 

Following the Van de Berg case, Wetherspoon instigated further legal actions against a number of individuals and companies who had freehold properties introduced to them by Van de Berg. Liability was denied by all. The cases were contested and settled out of court. Details can be found in appendix 4 below.

 

Press corrections

 

In the febrile atmosphere of the first UK lockdown, a number of harmful inaccuracies were published in the press. A large number of corrections and apologies were received, as a result of legal representations by Wetherspoon.

 

In order to try to set the record straight, a special edition of Wetherspoon News was published, which includes details of the apologies and corrections. It can be found on the company's website:

 

(https://www.jdwetherspoon.com/wp-content/uploads/2024/08/Does-Truth-Matter_.pdf).

 

 

Pubwatch

 

As Wetherspoon has previously highlighted, Pubwatch is a forum which has improved wider town and city environments, by bringing together pubs, local authorities and the police, in a concerted way, to encourage good behaviour and to reduce antisocial activity.

 

Wetherspoon pubs are members of 532 schemes country wide, with 4 new schemes and 10 less schemes due to disposals.

 

The company also helps to fund National Pubwatch, founded in 1997 by just two licensees and a police office. This is the umbrella organisation which helps to set up, co-ordinate and support local schemes.

 

It is our experience that in some towns and cities, where the authorities have struggled to control antisocial behaviour, the setting up of a Pubwatch has been instrumental in improving safety and security - of not only licensed premises, but also the town and city in general, as well as assisting the police in bringing down crime.

 

Conversely, we have found, in several towns, including some towns on the outskirts of London, that the absence of an effective Pubwatch scheme results in higher incidents of crime, disorder and antisocial behaviour.

 

In our view, Pubwatch is integral to making towns and cities a safe environment for everyone.

 

 

World Health Organisation report

 

The company continues to be concerned about the possibility of further lockdowns and about the efficacy of the government enquiry into the pandemic, which will not be concluded for several years.

 

In contrast, the World Health Organisation (WHO) reported on its findings in 2022.

 

Professor Francois Balloux, director of the UCL Genetics Institute, writing in The Guardian, and Professor Robert Dingwall, of Trent University, writing in the Telegraph, provide useful synopses of the WHO report:

 

(see pages 54-56 of Wetherspoon News

https://www.jdwetherspoon.com/wp-content/uploads/2024/04/Wetherspoon-News-autumn-2022.pdf)

 

The conclusion of Professor Balloux, broadly echoed by Professor Dingwall, based on an analysis by the World Health Organisation of the pandemic, is that Sweden (which did not lock down), had a Covid-19 fatality rate "of about half the UK's" and that "the worst performer, by some margin, is Peru, despite enforcing the harshest, longest lockdown."

 

Professor Balloux concludes that "the strength of mitigation measures does not seem to be a particularly strong indicator of excess deaths."

 

 

Current trading and outlook

 

In the last seven weeks, to 16 March 2025, like-for-like sales increased by 5.0%.

 

As previously indicated, increases in national insurance and labour rates will result in company cost increases of approximately £60 million per annum, which amount to approximately £1,500 per pub, per week.

 

Since labour costs are around 35% of the pub industry's sales, compared to around 11% for supermarkets, increases of this nature inevitably have a disproportionate impact on pubs, exacerbating the already-wide price differential for customers between the on and off-trade.

 

The combination of much higher VAT rates for pubs than supermarkets, combined with increased labour costs will weigh heavily on the pub industry.

 

The company currently anticipates a reasonable outcome for the financial year, subject to our future sales performance.

 

 

 

 

 

APPENDIX 1 Extract from Wetherspoon FY23 Annual report, Chairman's Statement

 

Business rates transmogrified to a sales tax

 

Business rates are supposed to be based on the value of the building, rather than the level of trade of the tenant. This should mean that the rateable value per square foot is approximately the same for comparable pubs in similar locations. However, as a result of the valuation approach adopted by the government "Assessor" in Scotland, Wetherspoon often pays far higher rates per square foot than its competitors.

 

This is highlighted (in the tables below) by assessments for the Omni Centre, a modern leisure complex in central Edinburgh, where Wetherspoon has been assessed at more than double the rate per square foot of the average of its competitors, and for The Centre in Livingston (West Lothian), a modern shopping centre, where a similar anomaly applies.

 

As a result of applying valuation practice from another era, which assumed that pubs charged approximately the same prices, the raison d'être of the rating system - that rates are based on property values, not the tenant's trade - has been undermined.

 

Similar issues are evident in Galashiels, Arbroath, Anniesland - and, indeed, at most Wetherspoon pubs in Scotland. In effect, the application of the rating system in Scotland discriminates against businesses like Wetherspoon, which have lower prices, and encourages businesses to charge higher prices. As a result, consumers are likely to pay higher prices, which cannot be the intent of rating legislation.

 

Omni Centre, Edinburgh					The Centre, Livingston
Occupier Name	Rateable Value (RV)	Customer Area (ft²)	Rates per square foot		Occupier Name	Rateable Value (RV)	Customer Area (ft²)	Rates per square foot
Playfair (JDW)	£218,750	2,756	£79.37		The Newyearfield (JDW)	£165,750	4,090	£40.53
Unit 9 (vacant)	£48,900	1,053	£46.44		Paraffin Lamp	£52,200	2,077	£25.13
Unit 7 (vacant)	£81,800	2,283	£35.83		Wagamama	£67,600	2,096	£32.25
Frankie & Benny's	£119,500	2,731	£43.76		Nando's	£80,700	2,196	£36.75
Nando's	£122,750	2,804	£43.78		Chiquito	£68,500	2,221	£30.84
Slug & Lettuce	£108,750	3,197	£34.02		Ask Italian	£69,600	2,254	£30.88
The Filling Station	£147,750	3,375	£43.78		Pizza Express	£68,100	2,325	£29.29
Tony Macaroni	£125,000	3,427	£36.48		Prezzo	£70,600	2,413	£29.26
Unit 6 (vacant)	£141,750	3,956	£35.83		Harvester	£98,600	3,171	£31.09
Cosmo	£200,000	7,395	£27.05		Pizza Hut	£111,000	3,796	£29.24
Average (exc JDW)	£121,800	3,358	£38.55		Hot Flame	£136,500	4,661	£29.29
					Average (exc JDW)	£82,340	2,721	£30.40

 

In summary, as a result of the approach taken in Scotland, business rates for pubs are de facto a sales tax, rather than a property tax, as the above examples clearly demonstrate.

 

 

 

 

APPENDIX 2 Extract from Wetherspoon FY23 Annual report, Chairman's Statement:

 

VAT equality

 

As we have previously stated, the government would generate more revenue and jobs if it were to create tax equality among supermarkets, pubs and restaurants.

 

Supermarkets pay virtually no VAT in respect of food sales, whereas pubs pay 20%. This has enabled supermarkets to subsidise the price of alcoholic drinks, widening the price gap, to the detriment of pubs and restaurants. Pubs also pay around 20 pence a pint in business rates, whereas supermarkets pay only about 2 pence, creating further inequality.

 

Pubs have lost 50% of their beer sales to supermarkets in the last 35 or so years. It makes no sense for supermarkets to be treated more leniently than pubs, since pubs generate far more jobs per pint or meal than do supermarkets, as well as far higher levels of tax. Pubs also make an important contribution to the social life of many communities and have better visibility and control of those who consume alcoholic drinks.

.

Tax equality is particularly important for residents of less affluent areas, since the tax differential is more important there - people can less afford to pay the difference in prices between the on and off trade.

 

As a result, in these less affluent areas, there are often fewer pubs, coffee shops and restaurants, with less employment and increased high-street dereliction. Tax equality would also be in line with the principle of fairness - the same taxes should apply to businesses which sell the same products.

 

 

 

APPENDIX 3 Extract from Wetherspoon FY23 Annual report, Chairman's Statement

 

Corporate Governance

 

As a result of the 'nine-year rule', limiting the tenure of NEDs and the presumption in favour of 'independent', part-time chairmen, boards are often composed of short-term directors, with very little representation from those who understand the company best - people who work for it full time, or have worked for it full time.

 

Wetherspoon's review of the boards of major banks and pub companies, which teetered on the edge of failure in the 2008-10 recession, highlighted the short "tenure", on average, of directors.

 

In contrast, Wetherspoon noted the relative success, during this fraught financial period, of pub companies Fuller's and Young's, the boards of which were dominated by experienced executives, or former executives.

 

As a result, Wetherspoon increased the level of experience on the Wetherspoon board by appointing four "worker directors".

 

All four worker directors started on the 'shop floor' and eventually became successful pub managers. Three have been promoted to regional management roles. They have worked for the company for an average of 24 years.

 

Board composition cannot guarantee future success, but it makes sensible decisions, based on experience at the coalface of the business, more likely.

 

The UK Corporate Governance Code 2018 (the 'Code') is a vast improvement on previous codes, emphasising the importance of employees, customers and other stakeholders in commercial success. It also emphasises the importance of its comply-or-explain ethos, and the consequent need for shareholders to engage with companies in order to understand their explanations.

 

A major impediment to the effective implementation of comply or explain seems to be the undermanning of the corporate governance departments of major shareholders.

 

For example, Wetherspoon has met a compliance officer from one major institution who is responsible for around 400 companies - an impossible task.

 

As a result, it appears that compliance officers and governance advisors, in practice, often rely on a "tick-box" approach, which is, itself, in breach of the Code.

 

A further issue is that many major investors, in their own companies, for sensible reasons, do not observe the nine-year rule, and other rules, themselves. An approach of "do what I say, not what I do" is clearly unsustainable.

 

 

 

APPENDIX 4 Extract from Wetherspoon FY23 Annual report, Chairman's Statement:

 

Property Litigation

 

In 2013, Wetherspoon agreed an out-of-court settlement of approximately £1.25 million with developer Anthony Lyons, formerly of property leisure agent Davis Coffer Lyons, relating to claims that Mr Lyons had been an accessory to frauds committed by Wetherspoon's former retained agent Van de Berg and its directors Christian Braun, George Aldridge and Richard Harvey in respect of properties in Leytonstone (which currently trades as the Walnut Tree), Newbury (which was leased to Café Rouge) and Portsmouth (which currently trades as The Isambard Kingdom Brunel).

 

Of these three properties, only Portsmouth was pleaded by Wetherspoon in its case 2008/9 case against Van de Berg. Mr Lyons denied the claim and the litigation was contested.

 

In the Van de Berg litigation, Mr Justice Peter Smith ruled that Van de Berg, but not Mr Lyons (who was not a party to the case), fraudulently diverted the freehold of Portsmouth from Wetherspoon to Moorstown Properties Limited, a company owned by Simon Conway, which leased the property to Wetherspoon.

 

As part of a series of cases, Wetherspoon also agreed out-of-court settlements with:

 

1) Paul Ferrari of London estate agent Ferrari Dewe & Co, in respect of properties referred to as the 'Ferrari Five' by Mr Justice Peter Smith in the Van de Berg case, and

 

2) Property investor Jason Harris, formerly of First London and now of First Urban Group who paid £400,000 to Wetherspoon to settle a claim in which it

 was alleged that Harris was an accessory to frauds committed by Van de Berg. Harris contested the claim and did not admit liability.

 

Messrs Ferrari and Harris both contested the claims and did not admit liability.

 

 

 

 

INCOME STATEMENT for the 26 weeks ended 26 January 2025

 

J D Wetherspoon plc, company number: 1709784
	Notes	Unaudited		Unaudited		Unaudited		Unaudited	Unaudited	Unaudited
		26 weeks		26 weeks		26 weeks		26 weeks	26 weeks	26 weeks
		ended		ended		ended		ended	ended	ended
		26 January		26 January		26 January		28 January	28 January	28 January
		2025		2025		2025		2024	2024	2024
		before		separately		after		before	separately	after
		separately		disclosed		separately		separately	disclosed	separately
		disclosed		items		disclosed		disclosed	items	disclosed
		items				items		items		items
		£000		£000		£000		£000	£000	£000
Revenue	1	1,029,518		-		1,029,518		990,954	-	990,954
Other operating income	2	-		-		-		-	4,356	4,356
Operating costs	2	(964,691)		(1,806)		(966,497)		(923,272)	-	(923,272)
Operating profit		64,827		(1,806)		63,021		67,682	4,356	72,038
Property gains/(losses)	2	-		(825)		(825)		88	(15,179)	(15,091)
Finance income	2	1,256		11,107		12,363		1,195	1,567	2,762
Finance costs	2	(33,214)		-		(33,214)		(32,931)	(636)	(33,567)
Profit/(loss) before tax		32,869		8,476		41,345		36,034	(9,892)	26,142
Income tax charge	4	(7,988)		(1,131)		(9,119)		(11,147)	3,653	(7,494)
Profit/(loss) for the period		24,881		7,345		32,226		24,887	(6,239)	18,648
Profit/(loss) per ordinary share (p)
- Basic	5	21.5		6.3		27.8		20.3	(5.1)	15.2
- Diluted	5	20.6		6.1		26.7		19.6	(4.9)	14.7

 

 

 

STATEMENT OF COMPREHENSIVE INCOME for the 26 weeks ended 26 January 2025

 

 

			Unaudited	Unaudited	Audited
	Notes		26 weeks	26 weeks	52 weeks
			ended	ended	ended
			26 January	28 January	28 July
			2025	2024	2024
			£000	£000	£000
Items which will be reclassified subsequently to profit or loss:
Interest rate swaps: gain taken to other comprehensive income	10		-	38	38
Interest rate swaps: loss reclassification to the income statement	10		(6,986)	(5,601)	(18,025)
Tax on items taken directly to other comprehensive income			-	-	-
Currency translation differences			(596)	(1,388)	(1,294)
Net loss recognised directly in other comprehensive income			(7,582)	(6,951)	(7,582)
Profit for the period			32,226	18,648	48,785
Total comprehensive profit for the period			24,644	11,697	29,504

 

 

 

 

 

 

 

 

 

 

CASH FLOW STATEMENT for the 26 weeks ended 26 January 2025

 

J D Wetherspoon plc, company number: 1709784		Unaudited		Unaudited		Unaudited	Unaudited	Audited	Audited
				free cash			free cash		free cash
				flow1			flow1		flow1
		26 weeks		26 weeks		26 weeks	26 weeks	52 weeks	52 weeks
	Note	ended		ended		ended	ended	ended	ended
		26 January		26 January		28 January	28 January	28 July	28 July
		2025		2025		2024	2024	2024	2024
		£000		£000		£000	£000	£000	£000
Cash flows from operating activities
Cash generated from operations	6	115,230		115,230		78,719	78,719	232,907	232,907
Interest received		1,107		1,107		1,053	1,053	1,765	1,765
Interest paid		(25,100)		(25,100)		(26,770)	(26,770)	(52,482)	(52,482)
Cash proceeds on termination of interest rate swaps		-		-		14,783	14,783	14,783	14,783
Corporation tax paid		(10,858)		(10,858)		(6,600)	(6,600)	(9,940)	(9,940)
Lease interest	11	(7,254)		(7,254)		(7,321)	(7,321)	(14,471)	(14,471)
Net cash flow from operating activities		73,125		73,125		53,864	53,864	172,562	172,562
Cash flows from investing activities
Reinvestment in pubs		(34,664)		(34,664)		(33,612)	(33,612)	(76,389)	(76,389)
Reinvestment in business and IT projects		(5,988)		(5,988)		(975)	(975)	(6,243)	(6,243)
Investment in new pubs and pub extensions		(10,375)		-		(10,510)	-	(11,933)	-
Freehold reversions and investment properties		(13,580)		-		(12,122)	-	(21,944)	-
Proceeds of sale of property, plant and equipment		5,686		-		10,688	-	17,872	-
Net cash flow used in investing activities		(58,921)		(40,652)		(46,531)	(34,587)	(98,637)	(82,632)
Cash flows from financing activities
Equity dividends paid		(14,807)		-		-	-	-	-
Purchase of own shares for cancellation		(8,891)		-		(34,081)	-	(39,505)	-
Purchase of own shares for share-based payments		(11,763)		(11,763)		(6,630)	(6,630)	(12,738)	(12,738)
Loan issue cost		(294)		(294)		-	-	(4,948)	(4,948)
Advances/(repayments) under bank loans		60,000		-		15,000	-	(4,000)	-
Other loan receivables		391		-		370	-	778	-
Lease principal payments	11	(20,915)		(20,915)		(18,729)	(18,729)	(39,207)	(39,207)
Asset-financing principal payments		-		-		(2,107)	-	(4,245)	-
Net cash flow from (used in) financing activities		3,721		(32,972)		(46,177)	(25,359)	(103,865)	(56,893)
Net change in cash and cash equivalents		17,925				(38,844)		(29,940)
Opening cash and cash equivalents		57,233				87,173		87,173
Closing cash and cash equivalents		75,158				48,329		57,233
Free cash flow1				(499)			(6,082)		33,037

 

¹ Free cash flow is a measure not required by accounting standards; a definition is provided in the accounting policies within the 2024 Annual Report.

 

 

 

 

 

 

 

 

BALANCE SHEET as at 26 January 2025

 

J D Wetherspoon plc, company number: 1709784	Notes	Unaudited	Unaudited	Audited
		26 January	28 January	28 July
		2025	2024	2024
		£000	£000	£000
Assets
Non-current assets
Property, plant and equipment		1,397,306	1,374,806	1,374,617
Intangible assets		6,902	6,489	5,933
Investment property		18,202	18,652	18,290
Right-of-use assets	11	367,864	364,072	373,338
Other loan receivable		803	1,523	1,194
Derivative financial instruments	10	314	-	-
Lease assets	11	9,374	9,771	8,860
Total non-current assets		1,800,765	1,775,313	1,782,232
Current assets
Lease assets	11	1,066	1,617	1,358
Assets held for sale	8	1,500	1,750	2,488
Inventories		31,460	29,374	28,404
Receivables		27,276	27,543	26,576
Current income tax receivables		4,837	6,301	6,079
Cash and cash equivalents		75,158	48,329	57,233
Total current assets		141,297	114,914	122,138
Total assets		1,942,062	1,890,227	1,904,370
Current liabilities
Borrowings	9	-	(2,093)	-
Derivative financial instruments	10	(78)	-	(701)
Trade and other payables		(300,364)	(281,294)	(298,059)
Provisions		(1,382)	(2,817)	(3,047)
Lease liabilities	11	(47,629)	(48,413)	(49,582)
Total current liabilities		(349,453)	(334,617)	(351,389)
Non-current liabilities
Borrowings	9	(779,540)	(742,879)	(719,134)
Derivative financial instruments	10	(889)	(9,116)	(4,073)
Deferred tax liabilities		(56,660)	(64,359)	(59,487)
Lease liabilities	11	(363,183)	(369,938)	(368,660)
Total non-current liabilities		(1,200,272)	(1,186,292)	(1,151,354)
Total liabilities		(1,549,725)	(1,520,909)	(1,502,743)
Net assets		392,337	369,318	401,627
Shareholders' equity
Share capital		2,435	2,485	2,472
Share premium account		143,170	143,170	143,170
Capital redemption reserve		2,477	2,337	2,440
Other reserves		168,764	234,669	195,074
Hedging reserve		6,808	26,218	13,794
Currency translation reserve		(378)	578	106
Retained earnings		69,061	(40,139)	44,571
Total shareholders' equity		392,337	369,318	401,627

 

 

 

 

 

 

 

STATEMENT OF CHANGES IN EQUITY

 

J D Wetherspoon plc, company number: 1709784
	Notes	Share	Share premium	Capital	Other		Currency
		capital	account	redemption	Reserves	Hedging	translation	Retained	Total
				reserve		reserve	reserve	earnings
		£000	£000	£000	£000	£000	£000	£000	£000
As at 28 January 2024 as previously reported		2,485	143,170	2,337	234,669	26,218	578	(40,139)	369,318
Effect of restatements1		-	-	-	-	-	-	13,600	13,600
Restated1 as at 28 January 2024		2,485	143,170	2,337	234,669	26,218	578	(26,539)	382,918
Total comprehensive income		-	-	-	-	(12,424)	(472)	30,703	17,807
Profit for the period		-	-	-	-		-	30,137	30,137
Interest rate swaps: amount reclassified to the income statement		-	-	-	-	(12,424)	-	-	(12,424)
Currency translation differences		-	-	-	-	-	(472)	566	94
Purchase of own shares and cancellation		(13)	-	103	(39,595)	-	-	39,458	(47)
Share-based payment charges		-	-	-	-	-	-	7,008	7,008
Tax on share-based payment	4	-	-	-	-	-	-	49	49
Purchase of own shares for share-based payments		-	-	-	-	-	-	(6,108)	(6,108)
As at 28 July 2024		2,472	143,170	2,440	195,074	13,794	106	44,571	401,627
Total comprehensive income		-	-	-	-	(6,986)	(484)	32,114	24,644
Profit for the period		-	-	-	-		-	32,226	32,226
Interest rate swaps: amount reclassified to the income statement		-	-	-	-	(6,986)	-	-	(6,986)
Currency translation differences		-	-	-	-	-	(484)	(112)	(596)
Purchase of own shares and cancellation		(37)	-	37	(11,503)	-	-	-	(11,503)
Share-based payment charges		-	-	-	-	-	-	4,295	4,295
Tax on share-based payment	4	-	-	-	-	-	-	(156)	(156)
Purchase of own shares for share-based payments		-	-	-	-	-	-	(11,763)	(11,763)
Dividends		-	-	-	(14,807)	-	-	-	(14,807)
As at 26 January 2025		2,435	143,170	2,477	168,764	6,808	(378)	69,061	392,337

¹Restated 30 July 2023. See accounting policies in Annual Report 2024.

 

The share premium account represents those proceeds received in excess of the nominal value of new shares issued.

 

The capital redemption reserve represents the nominal amount of share capital repurchased and cancelled in previous periods.

 

Other reserves contain net proceeds received for share placements which took place in previous periods. The other reserve is determined to be distributable for the purposes of the Companies Act 2006.

 

During the year, 1,840,000 shares were repurchased by the company and cancelled at a cost of £11.5 million (£2.6 million of which was paid after 26 January 2025 and has been treated as a current liability in the balance sheet), including fees, representing an average cost per share of 621p.

 

See note 10 for details on the hedging reserve.

 

The currency translation reserve contains the accumulated currency gains and losses on the long-term financing and balance sheet translation of the overseas branch. The currency translation difference reported in retained earnings is the retranslation of the opening reserves in the overseas branch at the current period end's currency exchange rate.

 

As at 26 January 2025, the company had distributable reserves of £244.3 million (2024: restated £234.9 million).

 

 

 

 

 

 

 

 

 

 

 

NOTES TO THE FINANCIAL STATEMENTS

 

 

1.             Revenue

	Unaudited	Unaudited	Audited
	26 weeks	26 weeks	52 weeks
	ended	ended	ended
	26 January	28 January	28 July
	2025	2024	2024
	£000	£000	£000
Bar	588,626	570,810	1,167,450
Food	392,490	374,714	773,002
Slot/fruit machines	35,490	32,232	66,886
Hotel	11,202	12,131	25,337
Other	1,710	1,067	2,825
	1,029,518	990,954	2,035,500

 

2.          Separately disclosed items

		Unaudited	Unaudited
		26 weeks	26 weeks
		ended	ended
		26 January	28 January
		2025	2024
		£000	£000
Operating items
Government grants		-	14
Depreciation adjustment on impaired assets		(968)	4,139
Other		(838)	203
Total operating (loss)/profit		(1,806)	4,356
Property losses
Disposal programme
Loss on disposal of pubs		(2,160)	(5,913)
		(2,160)	(5,913)
Other property (gains)/losses
Impairment of assets under construction		-	(4,583)
Impairment of property, plant and equipment		(2,489)	(5,848)
Reversal of property, plant and equipment impairment		3,914	358
Impairment of right-of-use assets		(413)	-
Reversal of right-of-use assets impairment		323	807
		1,335	(9,266)
Total property losses		(825)	(15,179)
Other items
Finance costs		-	(636)
Finance income		11,107	1,567
		11,107	931
Taxation
Tax effect on separately disclosed items		(1,131)	3,653
		(1,131)	3,653
Total separately disclosed items		7,345	(6,239)

 

 

 

 

2.             Separately disclosed items (continued)

 

Operating items

Local government support grants

The company has not received any government grants in the period (2024: £14,000 associated with the COVID-19 pandemic).

 

Depreciation adjustment on impaired assets

An adjustment of £968,000 for previously under charged depreciation on impaired fixed assets has been recognised this period. In 2024, income of £4,139,000 was recognised due to an overcharge of depreciation relating to previously impaired fixed assets and right-of-use assets.

 

Other

Costs of £838,000 (2024: income of £203,000) have been recognised in the period, relating to:

·    £568,000 (2024: nil) of employee settlement agreements.

·    £139,000 (2024: nil) due to a historic VAT correction.

·    £72,000 (2024: £517,000) relating to a contractual dispute with a large supplier which is now resolved.

·    £59,000 (2024: nil) relating to property expenditure the company deems to be outside the usual course of business and therefore classified as separately disclosed items.

·    In the prior period, other income of £1,402,000 was recognised relating to a settlement agreement offset by costs of £682,000 in relation to a historic employment tax issue and costs of £517,000, as mentioned above.

 

Property losses

Costs classified under the 'loss on disposal of pubs' relate to sites sold or surrendered during the period.

 

Other property (gains)/losses

Property impairment relates to pubs which are deemed unlikely to generate sufficient cash flows in the future to support their carrying value. In the period, the company recognised a total impairment reversal of £1,335,000 (2024: charge of £9,266,000).

 

Separately disclosed finance costs and income

The separately disclosed finance costs in the prior period of £636,000 relate to interest rate swaps.

 

A credit of £4,120,000 (2024: charge of £6,237,000) relates to the fair value movement on interest rate swaps. Income of £6,987,000 (2024: income of £176,000) relates to the amortisation of the hedge reserve to the P&L relating to discontinued hedges. No hedge ineffectiveness has been recognised in the period (2024: income of £5,425,000).

 

Included within separately disclosed finance income during the 26 weeks ended 28 January 2024 is the reversal of overcharged

interest relating to IFRS-16 leases, of £1,567,000.

 

Taxation

The tax effect on separately disclosed items is a cost of £1,131,000 (2024: income of £3,653,000).

 

 

 

 

 

3.     Employee benefits expenses

	Unaudited	Unaudited
	26 weeks	26 weeks
	ended	ended
	26 January	28 January
	2025	2024
	£000	£000
Wages and salaries	371,229	345,684
Employee support grants	-	(289)
Social security costs	23,307	21,506
Other pension costs	6,396	5,682
Share-based payments	4,295	4,013
	405,227	376,596

Employee support grants disclosed above are amounts claimed by the company under the coronavirus job retention schemes in the UK and the Republic of Ireland.

 

	Unaudited	Unaudited
	2025	2024
	Number	Number
Full-time equivalents
Head office	399	382
Pub managerial	4,686	4,490
Pub hourly paid staff	19,208	19,593
	24,293	24,465
	2025	2024
	Number	Number
Total employees
Head office	405	382
Pub managerial	5,005	4,744
Pub hourly paid staff	36,599	36,628
	42,009	41,754

 

The totals above relate to the monthly average number of employees during the period, not the total of employees at the end of the period.

 

Share-based payments	Unaudited	Unaudited
	26 weeks	26 weeks
	ended	ended
	26 January	28 January
	2025	2024
Shares awarded during the year (shares)	2,085,491	1,548,446
Average price of shares awarded (pence)	723	658
Market value of shares vested during the year (£000)	6,116	4,835
Share awards not yet vested (£000)	20,662	15,116

 

The shares awarded as part of the above schemes are based on the cash value of the bonuses at the date of the awards. These awards vest over three years, with their cost spread over their three-year life. The share-based payment charge above represents the annual cost of bonuses awarded over the past three years. All awards are settled in equity.

 

The company operates two share-based compensation plans. In both schemes, the fair values of the shares granted are determined by reference to the share price at the date of the award. The shares vest at a £Nil exercise price - and there are no market-based conditions to the shares which affect their ability to vest.

 

 

 

 

 

 

 

4.     Income tax expense

 

The taxation charge for the 26 weeks ended 26 January 2025 is based on the pre-separately disclosed items profit before tax of £32.9 million and the estimated effective tax rate before separately disclosed items for the 26 weeks ended 26 January 2025 of 24.3% (28 July 2024: 20.5%). This comprises a pre-separately disclosed current tax rate of 16.5% (28 July 2024: 3.9%) and a pre-separately disclosed deferred tax charge of 7.8% (28 July 2024: 20.5% charge).

 

The UK standard weighted average tax rate for the period is 25% (2024: 25%).

 

The exceptional current tax charge relates entirely to the tax on profit crystallised when terminating interest rate SWAP contracts.  For tax purposes the profits are spread over the remaining life of the underlying hedged item which results in the high exceptional ETR in the current period. A deferred tax liability is recognised in respect of this item.

 

 

	Unaudited		Unaudited	Unaudited	Unaudited	Audited	Audited
	26 weeks		26 weeks	26 weeks	26 weeks	52 weeks	52 weeks
	ended		ended	ended	ended	ended	Ended
	26 January 2025		26 January 2025	28 January 2024	28 January 2024	28 July 2024	28 July 2024
	before		after	before	after	before	after
	separately		separately	separately	separately	separately	separately
	disclosed		disclosed	disclosed	Disclosed	disclosed	disclosed
	items		items	items	Items	Items	Items
	£000		£000	£000	£000	£000	£000
Taken through income statement
Current income tax:
Current income tax charge	5,410		12,178	75	8,895	2,901	15,307
Previous period adjustment	-		-	-	(245)	-	(3,043)
Total current income tax	5,410		12,178	75	8,650	2,901	12,264
Deferred tax:
Origination and reversal of temporary differences	2,578		(2,518)	11,072	(1,156)	12,460	(704)
Prior year deferred tax credit	-		(541)	-	-	-	275
Total deferred tax	2,578		(3,059)	11,072	(1,156)	12,460	(429)
Tax charge	7,988		9,119	11,147	7,494	15,361	11,835
Taken through equity
Current tax	(78)		(78)	(52)	(52)	(52)	(52)
Deferred tax	234		234	(186)	(186)	(235)	(235)
Tax credit	156		156	(238)	(238)	(287)	(287)
Taken through comprehensive income
Deferred tax charge on swaps	-		-	-	-	-	-
Tax (credit)/charge	-		-	-	-	-	-

 

For periods commencing on or after 1 January 2024, additional reporting requirements will apply to ensure that the effective tax

rate will be at least 15% in all countries, subject to various complex calculations. This is in line with the minimum taxation rules

announced by the G7 and progressed by the OECD Inclusive Framework on Base Erosion and Profit Sharing. These rules have

been implemented in the UK via the Multinational Top Up Tax legislation during the year and will first apply to the accounting

period ending 27 July 2025.

 

Historically the company's effective tax rate has been above 15%. However, the company does operate in Ireland where the

corporation tax rate is below 15%. The group has assessed the exposure to Multinational Top Up Taxes and any impact will be

immaterial.

 

The company applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to

Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.

 

 

 

 

 

5.            Earnings per share

 

Weighted average number of shares

 

Basic earnings/(loss) per share is calculated by dividing the profit/(loss) after tax for the period by the weighted average number of ordinary shares in issue during the financial year of 122,316,552 (2024: 127,671,463) less the weighted average number of shares held in trust during the financial year of 1,541,173 (2024: 4,618,943). Shares held in trust are shares purchased by the company to satisfy employee share schemes that have not yet vested.

 

Diluted earnings/(loss) per share is calculated by dividing the profit/(loss) after tax for the period by the weighted average number of ordinary shares in issue during the financial year adjusted for both shares held in trust and the effects of potentially dilutive shares. For the company, the dilutive shares are those that relate to employee share schemes that have not been purchased in advance and have not yet vested. In the event of making a loss during the year, the diluted loss per share is capped at the basic earnings per share as the impact of dilution cannot result in a reduction in the loss per share.

 

	Unaudited	Unaudited	Audited
Weighted average number of shares	26 weeks	26 weeks	52 weeks
	ended	ended	ended
	26 January	28 January	28 July
	2025	2024	2024
Shares in issue	122,316,552	127,671,463	125,291,770
Shares held in trust	(6,467,650)	(4,618,943)	(4,956,072)
Shares in issue - Basic	115,848,902	123,052,520	120,335,698
Dilutive shares1	5,007,628	3,466,567	4,693,614
Shares in issue - Diluted	120,856,530	126,519,087	125,029,312

 

 

Earnings / (loss) per share

 

26 weeks ended 26 January 2025 unaudited	Profit/(loss)	Basic EPS	Diluted EPS
	£000	pence	pence
Earnings (profit after tax)	32,226	27.8	26.7
Exclude effect of separately disclosed items after tax	(7,345)	(6.3)	(6.1)
Earnings before separately disclosed items	24,881	21.5	20.6
Underlying earnings before separately disclosed	24,881	21.5	20.6

 

 

26 weeks ended 28 January 2024 unaudited	Profit/(loss)	Basic EPS	Diluted EPS
	£000	pence	pence1
Earnings (profit after tax)	18,648	15.2	14.7
Exclude effect of separately disclosed items after tax	6,239	5.1	4.9
Earnings before separately disclosed items	24,887	20.3	19.6
Exclude effect of property gains/(losses)	(88)	(0.1)	(0.1)
Underlying earnings before separately disclosed	24,799	20.2	19.5

 

 

Free cash flow per share	Free cash	Basic free	Diluted free
	flow	cash flow	cash flow
		per share	per share
	£000	pence	pence
26 weeks ended 26 January 2025 unaudited	(499)	-0.4	-0.4
26 weeks ended 28 January 2024 unaudited	(6,082)	-4.9	-4.8
52 weeks ended 28 July 2024	33,037	27.5	26.4

 

 

 

 

 

 

6.            Cash used in/generated from operations

 

	Unaudited	Unaudited	Audited
	26 weeks	26 weeks	52 weeks
	ended	ended	ended
	26 January	28 January	28 July
	2025	2024	2024
	£000	£000	£000
Profit for the period	32,226	18,648	48,785
Adjusted for:
Tax (note 4)	9,119	7,494	11,835
Share-based charges (note 3)	4,295	4,013	11,021
Loss on disposal of property, plant and equipment	2,652	5,964	14,978
Disposal of capitalised leases & Lease premiums	(491)	(1,619)	(1,519)
Net impairment (reversal)/charge (note 2)	(1,335)	9,266	19,098
Interest payable & receivable	24,010	25,718	50,717
Lease interest (note 11)	7,254	5,782	14,471
Separately disclosed Interest (note 2)	(11,107)	636	(16,131)
Amortisation of bank loan issue costs	699	236	439
Depreciation and amortisation	56,044	49,675	102,382
Aborted properties costs	12	397	336
Foreign exchange movements	(596)	(1,388)	(1,294)
	122,782	124,822	255,118
Change in inventories	(3,056)	5,184	6,154
Change in receivables	(711)	(312)	707
Change in payables	(3,785)	(50,975)	(29,072)
Cash generated from operations	115,230	78,719	232,907

 

7.             Analysis of change in net debt

	Unaudited			Audited			Unaudited
	28 January	Cash	Other	28 July	Cash	Other	26 January
	2024	flows	changes	2024	flows	changes	2025
	£000	£000	£000	£000	£000	£000	£000
Borrowings
Cash and cash equivalents	48,329	8,904	-	57,233	17,925	-	75,158
Other loan receivable - before one year	797	(81)	-	716	-	-	716
Asset-financing obligations - before one year	(2,093)	2,138	(45)	-	-	-	-
Current net borrowings	47,033	10,961	(45)	57,949	17,925	-	75,874
Bank loans - due after one year	(644,996)	23,948	(181)	(621,229)	(59,706)	(677)	(681,612)
Asset-financing obligations - after one year	-	-	-	-	-	-	-
Other loan receivable - after one year	1,607	(312)	(101)	1,194	(391)	-	803
Private placement - after one year	(97,883)	-	(22)	(97,905)	-	(23)	(97,928)
Non-current net borrowings	(741,272)	23,636	(304)	(717,940)	(60,097)	(700)	(778,737)
Net debt	(694,239)	34,597	(349)	(659,991)	(42,172)	(700)	(702,863)
Derivatives
Interest rate swaps asset - after one year	-	(14,783)	14,783	-	-	314	314
Interest rate swaps liability - within one year	-	-	(701)	(701)	-	623	(78)
Interest rate swaps liability - after one year	(9,116)	-	5,043	(4,073)	-	3,184	(889)
Total derivatives	(9,116)	(14,783)	19,125	(4,774)	-	4,121	(653)
Net debt after derivatives	(703,355)	19,814	18,776	(664,765)	(42,172)	3,421	(703,516)
Leases
Lease assets - before one year	1,617	(549)	290	1,358	(582)	290	1,066
Lease assets - after one year	9,771	-	(911)	8,860	-	514	9,374
Lease obligations - before one year	(48,413)	21,027	(22,196)	(49,582)	21,497	(19,544)	(47,629)
Lease obligations - after one year	(369,938)	-	1,278	(368,660)		5,477	(363,183)
Net lease liabilities	(406,963)	20,478	(21,539)	(408,024)	20,915	(13,263)	(400,372)
Net debt after derivatives and lease liabilities	(1,110,318)	40,292	(2,763)	(1,072,789)	(21,257)	(9,842)	(1,103,888)

 

Lease obligations represent long-term payables, while lease assets represent long-term receivables - both are, therefore, disclosed in the table above.

 

The non-cash movement in bank loans and the private placement relate to the amortisation of loan issue costs. These are arrangement fees paid in respect of new borrowings and are charged to the income statement over the expected life of the loans.

 

The movement in interest rate swaps relates to the change in the 'mark to market' valuations for the year for swaps subject to hedge accounting.

 

 

 

 

 

8.     Assets held for sale

 

These relate to situations in which the company had exchanged contracts to sell a property, but the transaction is not yet complete. As at 26 January 2025, one site was classified as held for sale (28 July 2024: four sites)

						Unaudited	Unaudited	Audited
						26 January	28 January	28 July
						2025	2024	2024
						£000	£000	£000
Property, plant and equipment						1,500	1,750	2,488

 

9.     Borrowings

						Unaudited	Unaudited	Audited
						26 January	28 January	28 July
						2025	2024	2024
						£000	£000	£000
Current (due within one year)
Other
Lease liabilities						47,629	48,413	49,582
Asset-financing obligations						-	2,093	-
Total current borrowings (including lease liabilities)						47,629	50,506	49,582
Non-current (due after one year)
Bank loans
Variable-rate facility						686,000	645,000	626,000
Unamortised bank loan issue costs						(4,388)	(4)	(4,771)
						681,612	644,996	621,229
Private placement
Fixed-rate facility						98,000	98,000	98,000
Unamortised private placement issue costs						(72)	(117)	(95)
						97,928	97,883	97,905
Other
Lease liabilities						363,183	369,938	368,660
Asset-financing						-	-	-
						363,183	369,938	368,660
Total non-current borrowings (including lease liabilities)						1,142,723	1,112,817	1,087,794
Total borrowings (including lease liabilities)						1,190,352	1,163,323	1,137,376

 

Lease liabilities

The carrying amounts of lease liabilities and the movements during the period are outlined in note 11.

 

Asset-financing obligations

Asset-financing obligations relate to asset finance leases of equipment in pubs.

 

Variable-rate facility

The company refinanced during 2024 and now has a combined revolving credit facility of £529 million and term loan of £311 million (28 July 2024: combined revolving credit facility of £529 million and term loan of £311 million). There was no cash flow impact on refinancing, given that the new agreement was a continuation of the previous facility. As at 26 January 2025, £686 million was drawn down (28 July 2024: £626 million). There are 13 participating lenders. The current facility of £840 million matures in June 2028. The company has hedged its interest rate liabilities to its banks by swapping the floating-rate debt into fixed-rate debt, see note 10.

 

Unamortised bank loan issue costs

Unamortised bank loan issue costs primarily relate to refinancing, securing and extending the variable-rate facility.

 

Private placement

The fixed-rate facility relates to senior secured notes of £98 million. The notes mature in 2026.

 

The company has an overdraft facility of £10 million, which is undrawn as at 26 January 2025.

 

 

 

10.          Financial instruments

 

The below table outlines the movements in fair value among the hedging reserve, comprehensive income and the income statement during the year.

	Unaudited	Audited
	26 January	28 July
	2025	2024
Interest rate swaps	£000	£000
Carrying value of derivative financial instruments - Non-current and current liability	(967)	(4,774)
Carrying value of derivative financial instruments - Non-current asset	314	-
Change in fair value of continuing derivatives	4,120	4,774
Change in fair value of discontinued derivatives	-	11,866
Hedge (gain)/loss recognised in comprehensive income in respect of continuing hedges	-	(38)
Losses/(gains) recognised in P&L in respect of hedges held at fair value through the profit or loss	(4,120)	1,894
Transaction proceeds received in respect of terminated hedges (net of termination fees)	-	14,783
Amortisation to P&L of cashflow hedge reserve relating to discontinued hedge relationship	(6,986)	(18,025)
Hedging reserve balance in respect of discontinued hedges	(6,808)	(13,794)
Hedging Reserve
Opening	(13,794)	(31,781)
Hedging (gains)/losses recognised in comprehensive income	-	(38)
Hedge ineffectiveness reclassified from the reserves to the P&L in respect of terminated swaps	-	-
Amortisation to P&L of cashflow hedge reserve relating to discontinued hedge relationships	6,986	18,025
Deferred tax posted to comprehensive income	-	-
Closing	(6,808)	(13,794)

 

At the beginning of the reporting period, the company had two interest rate swaps in place. No hedge accounting was

applied to these interest rate swaps. During the 26 weeks ended 26 January 2025, seven further interest rate swaps were taken out, designated as two relationships.

 

The hedge reserve of £6.8 million is made up of fair value relating to hedges which have previously been derecognised/discontinued (28 July 2024: £13.8 million).

11.             Leases

 

The following amounts, relating to lease cash flows, were debited/credited to the income statement during the period.

 

Rent Cash flow Analysis		Unaudited	Audited
		26 January	28 July
		2025	2024
		£000	£000
Cash outflows relating to capitalised leases		28,913	54,921
Expense relating to short term leases		422	593
Expense relating to variable element of concessions		7,847	16,905
Total rent cash outflows for period		37,182	72,419
Cash inflows relating to capitalised leases		(743)	(1,243)
Income relating to lessor sites		(2,077)	(2,711)
Total rent cash Inflows for period		(2,820)	(3,954)

 

 

The balance sheet shows the following amounts relating to leases. These have been reconciled in sections (a) to (d) below:

 

		Unaudited	Audited
		26 January	28 July
		2025	2024
		£000	£000
Right-of-use asset1 (a)		367,864	373,338
Non-current lease asset		9,374	8,860
Current lease assets		1,066	1,358
Total lease assets2 (b) (d)		10,440	10,218
Current lease liability		(47,629)	(49,582)
Non-current lease liability		(363,183)	(368,660)
Total lease liability1 (c) (d)		(410,812)	(418,242)

 

¹Right-of-use assets and lease liabilities relate to leasehold properties occupied by J D Wetherspoon.

²Lease assets relate to leasehold properties sublet by J D Wetherspoon.

 

 

11.     Leases (continued)

 

(a)   Right-of-use assets

 

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:

 

			£000
Net book amount as at 28 July 2024			373,338
Adjustments within the period:
Additions			9,547
Disposals due to new subleases			(1,276)
Remeasurement			11,725
Freehold reversions transferred to property, plant and equipment			(6,195)
Disposals and derecognised leases			-
Impact of lease adjustments			13,801
Amortisation and Impairment
Provided during the period			(19,192)
Exchange differences			8
Impairment loss			(415)
Reversal of impairment losses			324
Amortisation and Impairment			(19,275)
Net book amount at 26 January 2025			367,864

During the period, additions related to five new signed lease contracts and one new signed sublease contract. 12 were remeasured as a result of changes in the agreed payments under the lease contracts and changes in the lease terms. Exchange differences occur as a result of translating the capitalised leases in the Republic of Ireland. Five freehold reversions took place in the year, while there was one disposal. As at the time of this interim report, lease additions totalled £9,547,000 and depreciation £19,192,000.

 

(b) Sublet lease assets

		Unaudited	Audited
		26 January	28 July
		2025	2024
		£000	£000
Lease asset as at commencement of period		10,219	9,811
Additions		1,399	1,900
Remeasurements of leases		(596)	(516)
Interest due in period		161	267
Total cash Inflow for leases in period		(743)	(1,243)
At 26 January 2025		10,440	10,219

 

The incremental borrowing rate applied to lease liabilities and assets was 1.94 - 5.75% depending on the lease's length.

 

Set out below are the carrying amounts of the lease assets recognised and the movement during the period. The company sublets several of its leases, with lease assets being the capitalised future rent receivable from sublet sites.

 

 

 

 

 

 

 

                                                                                                                                                                                                                                                                           

11.   Leases (continued)

 

(c)   Lease liability

 

		Unaudited	Audited
		26 January	28 July
		2025	2024
		£000	£000
Lease liability as at commencement of period		(418,242)	(443,280)
Additions		(9,404)	(8,617)
Freehold reversions transferred to property, plant and equipment		6,764	6,764
Remeasurements of leases		(11,437)	(22,458)
Disposals and derecognised leases		-	2,081
Exchange differences		10	(330)
Lease liabilities before payments		(432,309)	(458,425)
Interest payable in period:
Interest expense within period (discounting element)		(7,415)	(14,738)
Total cash outflow for leases in period:
Lease payment commitments for period		28,912	54,921
Net principal payments		21,497	40,183
Lease liability as at closing of period		(410,812)	(418,242)

 

Future rent payments could change as a result of open-market rent reviews or options being exercised to terminate a lease early. Any changes in the minimum unavoidable lease payments will be included as a remeasurement of the lease liability. The accounting policies within the 2024 Annual Report further describe the policy in relation to the termination of leases.

 

(d)   Lease maturity profile

 

Set out below are the remaining maturities (period between the balance sheet date and the end of the lease) of the lease liabilities and lease assets, which are undiscounted:

		Lease liabilities		Lease assets
		26 January	28 July	26 January	28 July
		2025	2024	2025	2024
		£000	£000	£000	£000
Within one year		47,629	49,582	(1,066)	(1,358)
Between one and five years		169,341	171,644	(5,715)	(5,130)
After five years		337,793	335,859	(5,245)	(5,270)
Lease commitments payable / receivable		554,763	557,085	(12,026)	(11,758)
Discounting		(143,951)	(138,843)	1,586	1,540
Lease liability / lease asset		410,812	418,242	(10,440)	(10,218)