Wetherspoons has seen its like-for-like sales increase by 4.2% year-on-year in the 52 weeks to 26 July, despite its profits falling by 28% to £58.6m.

The pub chain reported that its revenue also increased by 5.2% in this period, as its operating profit dropped by almost 18% to £120.2m, as a result of higher costs and wages, repairs and increased business rates.

The firm said that government-led tax and cost increases have “weighed heavily” on the hospitality industry in recent years, and it has called for taxes to be “fair and equitable” .

Over this period, Wetherspoons has opened eight new pubs in the year and has disposed of 15 pubs. At the end of this period, 792 managed pubs were trading.

Chairman at Wetherspoon, Tim Martin, stated: “The hospitality industry, as many commentators and companies have noted, has borne the brunt of government-led tax and regulatory cost increases, especially in the last two budgets. This has resulted in pubs becoming even more expensive than supermarkets, leading to job losses, closures and high street dereliction.

“It is to be hoped that the powers-that-be will refrain from any further increases, since pubs and restaurants pay around 40% of their receipts as taxes of one sort or another - and provide immense financial support to the Treasury, as well as social support to the community.”

In the nine weeks to 27 September, the firm’s like-for-like sales have increased by 8.6% year-on-year, helped by “exceptional weather”, adding that it has made “substantial progress” in recent years in increasing the number of beer gardens and outside areas.

Wetherspoons stated that it has made a good start to the financial year, although this is partially due to the weather.

As a result, it anticipates its profit before tax to be in line with current market expectations, which is expected to reach £74m in the full year.

Head of markets at AJ Bell, Dan Coatsworth, stated: "Wetherspoons was a summer heatwave beneficiary as its plethora of beer gardens acted as a magnet to drinkers basking in the glorious sunshine. Even though the market had already priced this sales catalyst into the shares, as reflected by a strong run over the summer, confirmation of decent trading provided another boost.

"That’s all well and good, but a summer trading gain is now in the rearview mirror. The focus returns to Wetherspoons’ strategy of prioritising sales volumes over margins. Cost pressures are a key area to watch as Wetherspoons is typically reluctant to pass on extra costs to customers unless necessary. That’s reflected in the margin decline in the latest results, and those margin pressures could be sustained well into 2027.

"It’s not simply food and drink costs to watch as Wetherspoons said costs to repair and maintain its pubs went up by a third to £132m over the past financial year. It’s important to keep pubs looking nice, otherwise people won’t want to visit them. Therefore, one could argue that repair, maintenance and improvement is not a discretionary spend. Wetherspoons could temporarily delay some of this work, but such a decision could backfire down the line if punters vote with their feet and go elsewhere."

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