Wetherspoons is set to pay out final dividends to shareholders for the first time since the COVID pandemic.

The pub chain said that as a result of improved trading and financial position of the company, the board has recommended a final dividend of 12 pence per share, equivalent to the 2019 annual dividend.

In the year to 28 July, Wetherspoons hit revenue of £2.03bn, a 5.7% annual increase, while its profit before tax increased 73.5% to £73.9m.

However, in this time, the number of pubs operated by the chain dropped to 800 at the end of the 2024 financial year.

Investment director at AJ Bell, Russ Mould, said: "In some respects, the big increase in profit announced by Wetherspoons is a red herring, as part of it related to pub disposals.

"However, the company did achieve resilient trading and has brought back dividends for the first time since before the pandemic. While the amount might be fairly nominal, investors will still be pleased by the signal it sends, offering reassurance despite what is a sizeable debt pile.

"Wetherspoons deserves credit for navigating a tricky period of weak consumer demand as well as the poor weather and rioting which blighted the summer. The company thinks it can sustain 1,000 pubs and this kind of transparency is welcome, making it easy for the market to assess the scope for expansion from the current estate of 800 sites. Another lever the business can pull is to upgrade existing premises by adding garden spaces and expanding into adjacent buildings."

Like-for-like sales across this period increased by 7.6% year-on-year, with bar sales increasing by 8.9% and food sales jumping by 5.6%.

The pub chain said that these sales were stronger as a result of a small number of pub disposals and lease terminations.

Head of markets at interactive investor, Richard Hunter, stated that there were further "glimmers of light" at the company, with operating profit increasing 30% year-on-year to £139.5m, while its earnings per share increased by 77.3% to 46.8 pence.

Hunter added: "Even though some of the metrics have surpassed pre-pandemic levels, overall profitability has been hamstrung by a number of subsequent headwinds in the meantime, such as the previously noted 'ferocious' inflationary pressures, particularly in regard to energy, food and labour, although more recently some of these pressures have started to ease.

"From a broader perspective, the economic outlook for the UK is another potential headwind. Wetherspoons has been able to pass on some of the inflationary costs without diminishing its appeal, but equally it will be mindful that this particular strategy needs to be reined in where possible in order to maintain its no-nonsense and no-frills value offering."

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