JD Wetherspoon PLC (LSE: JDW) shares fell 4.3% in early trading, even as the pub chain reported a 10% rise in profits to £81.4 million and outperformed rivals for the third year in a row.
Chairman Tim Martin criticised Labour’s tax policies, saying increases in national insurance, minimum wage and new levies will cost the company £67 million a year and add to inflation. He also argued that pubs are treated unfairly compared to supermarkets.
Mr Martin has pledged to keep price rises to a minimum, despite new cost pressures from taxes and energy bills. He said the newly introduced “extended producer responsibility” packaging levy will push the company’s annual costs from £800,000 to £2.4 million.
Martin also criticised so-called “non-commodity” energy charges—taxes and levies added to electricity bills—which he said will increase Wetherspoon’s costs by £7 million a year from this month.
Despite the pressures, Wetherspoon maintained its 12p dividend and saw like-for-like sales grow 5.1%.
Meanwhile, the FTSE 100 was 38 points higher at 9,465.75.
