Wetherspoons shares slump March 8th, 2008
JD Wetherspoons (JDW) slumped by 51.75p to 260p on the news that it had been hit hard by the smoking ban and did not expect a speedy recovery from the downturn. Despite customers preferring the no smoking atmostphere, smokers are choosing to spend less time in the pubs, therefore drinking less.
Whilst turnover was up 0.4%, pre-tax profits fell 13% to £28.5m for the first half of the year. Second half results are expected to be broadly in line with the first half. Despite the news, the interim dividend was increased by 10% to 4.4p.
