Shares in Wetherspoons fell by 8% after the pub chain said its H1 profit is likely to be lower year-on-year.

In its latest trading update, Wetherspoons reported that its like-for-like (LFL) sales were up 4.7% year-on-year in the 25 weeks to 18 January. Its bar and food sales increased by 6.9% and 1.3% respectively, while its slot and fruit machines sales jumped by 9.1%.

In the year-to-date, the pub chain’s total sales are up 5.3%, while its LFL sales in the weeks between 15 December to 4 January were up by 8.8%.

In this period, Wetherspoons has opened six new venues and anticipates a total of 15 new pubs to open in the current financial year. It has also sold six pubs, giving rise of a net cash inflow of £3.3m, leaving it with a managed trading estate of 794 pubs.

Chairman, Tim Martin, said he was pleased with the group’s sales growth and the increased momentum in the second quarter.

However, he added: "Costs have been higher than anticipated, with energy, wages, repairs and business rates, for example, increasing by £45m in the first 25 weeks.

"Profits in the first half are likely to be lower than the comparable period in the previous financial year.

"If the current sales momentum continues, the company currently anticipates a full year trading outcome slightly below that achieved in FY25."

Investment director at AJ Bell, Russ Mould, said that value has been a key part of the pub chain’s appeal, but shareholders’ enthusiasm has waned following the profit warning.

He concluded: "As a large-scale employer of people on relatively lower wages, Wetherspoons is exposed to increases in the national living wage and employer national insurance contributions.

"Maintenance and energy costs continue to tick higher. While Wetherspoons can probably pass some extra costs to customers, it must walk a tightrope as it looks to keep prices keen enough to keep its clientele coming through the doors.

"Wetherspoons is looking to expand after a period of retrenchment, but investors will be keeping a close eye on the debt pile – which has nudged higher – to see if this has any impact on its roll-out plans."

Wetherspoons is expecting to announce its results for the six months to 25 January on 20 March.

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