Margin pressure at JD Wetherspoon

Margins at pub group JD Wetherspoon came under pressure last year as the business faced increased costs across the board, including higher taxes, labour, utilities and the cost of food and drink supplies. So despite growing revenues 7.6 per cent, operating margins fell to 9.4 per cent in the six-month period (from 10 per cent in 2009), which meant operating profits only edged up slightly to £49.6m. However, pre-tax profits slumped 11 per cent due to a sharp rise in interest charges, up from £12.6m to £17.4m, following a debt refinancing.

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