Image source: Shutterstock

Highlights

  • Wetherspoon’s FY24 revenue reached GBP 2,035.50 million, up 5.7% year-on-year.
  • Free cash inflow dropped 87.8% to GBP 33 million in FY24 due to increased reinvestment.
  • Wetherspoon plans menu enhancements and pub expansions, focusing on customer experience

Wetherspoon (JD) PLC (LSE: JDW) is a pub operator across the United Kingdom and Ireland. It has a market cap of GBP 902.44mn and is listed on the FTSE 250 index.

In FY24, the company reported revenue of GBP 2,035.50 million, reflecting a year-on-year increase of 5.7% compared to FY23. This growth was led by like-for-like (LFL) sales, which rose by 7.6%. Notable increases were seen in various segments, with bar sales climbing by 8.9%, food sales by 5.6%, slot, and fruit machine sales by 10.8%, and hotel room sales by 2.7%.

On the other hand, free cash inflow dropped 87.8% to GBP 33.00 million from GBP 271.10 million in the previous corresponding period. This decrease was primarily attributed to a reduction in liabilities to suppliers, which fell from GBP 329 million to GBP 298 million, along with a rise in reinvestment in pubs, which increased from GBP 47 million in FY23 to GBP 83 million in FY24, surpassing depreciation by GBP 17 million.

Further, the company had an asset turnover of 1.05x and a debt-equity ratio of 2.83x in FY24, compared to the industry median of 0.53x and 2.94x, respectively.

Company Outlook

As per the company, its sales are rising, with like-for-like sales increasing by 4.9% over the past nine weeks ending September 29, 2024. However, the company is cautious about potential future lockdowns and the ongoing government inquiry into the pandemic, which may take several years to complete.

Wetherspoon is also working to enhance its menu. At present, 24% of the dishes have fewer than 500 calories, while 39% are vegetarian and 11% are vegan. The company also aims to enhance successful existing pubs. It plans to add gardens and expand customer areas into nearby buildings. Recent expansions include The Prince of Wales in Cardiff, The Sir John Moore in Glasgow, and several others across the UK.

Top 10 Shareholders

JDW's top ten shareholders account for approximately 75.76% of total shareholdings. The largest individual shareholder is Martin (Timothy Randall), who holds around 24.58% of the shares, followed by Fidelity International with about 9.33%, as illustrated in the chart below:

Stock Information

The stock has increased by approximately 3.61% over the past month. However, it has decreased by around 144% over the last six months. The 52-week low is GBX 587.00, while the 52-week high is GBX 864.50. As of October 7, 2024, the stock's closing price is GBX 716.5.

Image source: EODHD/Others

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 11 October 2024. The reference data in this report has been partly sourced from EODHD/Others.