Fresh blow to UK pubs as JD Wetherspoon issues fourth profit warning in just seven months despite World Cup

JD WETHERSPOON has issued its fourth profit warning in seven months, despite football fever and scorching summer weather bringing drinkers through the doors. The pub chain said profits for the year were likely to fall below City expectations after sales grew more slowly than hoped and costs climbed. JD Wetherspoon has issued its fourth profit warning in seven months Credit: Alamy Stock Photo Founder and chairman Sir Tim Martin blamed ‘marginally lower sales’ and higher costs Credit: Paul Edwards Like-for-like sales rose 4 per cent in the 12 weeks to July 19 compared with a year earlier. Across the year so far, they were up 4.2 per cent. Sign up for the Money newsletter Thank you! But investors had expected a bigger lift from the World Cup and hot weather. Shares tumbled 9 per cent after yesterday’s announcement. Founder and chairman Sir Tim Martin blamed “marginally lower sales” in the final quarter, alongside higher bills for food, staff, repairs, energy and business rates. The firm, which runs 793 pubs and 23 franchise sites across the UK, had already warned in May that profit could come in slightly below the £73million then forecast by analysts. It has also said that wage rises and increased employer National Insurance contributions would add £60million to its costs this year. Derren Nathan, of Hargreaves Lansdown, said football mania and the heatwave had failed to deliver a “knockout performance”. Most read in Money The latest warning underlines the pressure facing Britain’s hospitality sector, where rising sales are struggling to offset soaring overheads. Pub bosses are hoping ministers will offer relief through cuts to business rates, VAT or National Insurance. BRANCHES SAFE-ANDER SANTANDER has promised not to close any more of its or TSB’s branches before 2028, despite a cost-cutting drive. New boss Mahesh Aditya said the bricks and mortar hubs remain an “important part” of the bank’s strategy. The pledge protects 305 Santander sites and 175 TSB branches for at least 18 months. However, it follows Santander’s decision earlier this year to axe 44 branches, putting 291 jobs at risk. Santander hopes to save £400million by the end of 2028 through integration, artificial intelligence and automation. JOBS DOWNED DIAGEO is cutting up to 30 per cent of jobs in some teams as new boss Dave Lewis battles weaker demand, especially in the US. The drinks giant, which owns Guinness, Johnnie Walker and Smirnoff, employed more than 29,000 people. Mr Lewis, nicknamed “Drastic Dave” after previous turnarounds, took charge in January. He is expected to reveal his full strategy to investors on August 6. BAGS OF CASH BRITISH luxury label Mulberry has slashed annual losses from £32.2million to £8.9million as shoppers returned — and snapped up more handbags at full price. Sales rose 4 per cent to £125.5million, accelerating to 11 per cent in the second half of last year. In Britain, like-for-like sales rose 8 per cent as shops saw a 19 per cent jump. Shares rose 2.2 per cent to a two-year high. Comment now