Pub chain JD Wetherspoon has paved the way for its expansion plans by announcing higher sales over the Christmas period, although it added that its operating margins were likely to be suffer as it prepares for the new openings. For the first 12 weeks of the second quarter to 19 January 2014, like-for-like sales increased by 6.7% and total sales by 10.6%. This brought year-to-date sales (comprising the 25 weeks to 19th January) to an increase of 5.2% on a like-for-like basis and 9% on a total sales basis.

However, the group added that operating margins before exceptional items were likely to be 0.2% lower than the same period last year, due to increased investment in areas such as IT, training and additional operating personnel ahead of its expansion in the years ahead.

JD Wetherspoon added that it was anticipating a slightly higher corporation tax rate for this financial year, at around 27%, due to higher-than-expected non-qualifying capital expenditure.

The company has opened 18 new pubs so far this financial year and currently has 11 sites under development. In line with previous estimates, it intends to open approximately 40 to 50 pubs in the current financial year.