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Five Year Analysis of J D Wetherspoon

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Submitted By NikkiR
Words 1977
Pages 8
HNC Business Management

Introduction to Finance & Accounts

Five Year Analysis of JD Weatherspoon Plc.

Module Tutor:

Neil Fletcher

Report By:

Nichola D. Robinson
(21042952)

Deadline Date
Wednesday 9th May 2012
Executive Summary

• Revenue has grown at a steady rate of 1.7% with a slight decrease in 2008 with the introduction of the Smoking Ban being implemented which prohibits smoking in public places.

• A significant increase in revenue in 2011 was attributed to increases in like for like bar sales (1.7%) and food sales (4.2%).

• Profit after tax fell by 4% in 2008 again this was due to the implementation of the Smoking Ban.

• Between 2007 – 2011 JD Weatherspoon have opened a total of 177 new venues taking the overall total to 823.

• Finance costs have increased from £379.5m to £429.8m due to the opening of 50 new venues.

• JD Weatherspoon has a strong position within the industry creating a total of 2,800 jobs with additional jobs being created by Suppliers.

• The implementation of the ‘Scores on the Doors’ Scheme has given an image boost awarding zero to five stars to the venues with the highest standards in Safety & Hygiene with an average of 86% of venues achieving between four to five stars.

• JD Weatherspoon is the main face of the CLIC Sargent charity raising over £4.6m for families caring for Children with Cancer.

• JD Weatherspoon’s only threat is the tax disparity between pubs and Supermarkets, JDW paying an average of 20% on food sales whilst Supermarkets pay no VAT and also have a lower cash tax rate per pint.

• JD Weatherspoon now operates 24 hotels around the UK in addition to the successful pub and food businesses.

• In 2007 JD Weatherspoon’s became the first venue to open its doors from 9am contributing to a total of

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