(MENAFN- ProactiveInvestors) () suffered a dreary festive season as sales eased in December and have not recovered.
Shares in the pub group fell on December’s 2% decline in like-for-like sales and warning that takings slowed further in January.
The slowdown dented the firm’s second quarter takings which were positive overall for the 12 weeks to 18 January with like-for-like sales up 2.8%
The chain which runs almost 1000 pubs in the UK again blamed flat drink sales (food held up) on the UK tax system claiming it favoured supermarkets over pubs.
“The main reason behind this trend is not that people prefer to drink at home but relates to the huge and growing price differential between pubs and supermarkets” said chairman Tim Martin Wetherspoon’s chairman.
The firm has previously flagged the biggest financial dangers to the pub industry as the VAT and business rates disparity between supermarkets and pubs.
It has also warned on stealth taxes like reduced allowances for gaming machine income.
Martin said operating margins for the half year to 25 January will be around 7.3% 0.9 points lower than the same period last year.
Margins have also hampered also by an above-inflation increase in pay for staff and an increase in utility and supplier costs.
The firm added that the reduction in sales growth may have an impact on the group’s operating margin if the trend continues.
Shares lost 17p to 801p.
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