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Pin to quick picksWetherspoon (J.D) Share News (JDW)

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Wetherspoon founder hits out at Brexit "doom-mongers"

Wed, 13th Jul 2016 10:34

* Founder critical of IMF, BoE, CBI

* Says UK economic prospects to improve after Brexit

* Pub trade "strengthened slightly" in recent weeks

LONDON, July 13 (Reuters) - Britain's economic prospectswill improve after Brexit, the founder of pubs group JDWetherspoon said on Wednesday, lashing out at the"irresponsible doom-mongering" of politicians, banks and companybosses in the run up to the referendum.

Tim Martin, who chairs the company, was a prominentcampaigner for Britain to leave the European Union, appearing intelevision debates before the June 23 vote and distributing halfa million beer mats challenging statistics used by thegovernment.

In comments in a trading statement on Wednesday, Martin hitout at the "extremely negative" forecasts for the Britisheconomy, including from UK finance minister George Osborne,Christine Lagarde, the head of the International Monetary Fund,Bank of England Governor Mark Carney, the Confederation ofBritish Industry, Goldman Sachs and many of the bosses ofBritain's biggest businesses.

"(These) individuals and organisations are either dishonest,or they have a poor understanding of economics, since democracyand prosperity are closely linked and the EU is clearlyundemocratic," he said.

"By voting to restore democracy in the UK, I believe theUK's economic prospects will improve, although it is quitepossible that the unprecedented and irresponsible doom-mongering... may lead to some kind of slowdown."

The vote for Brexit caused turmoil in financial markets andhas hit consumer confidence in Britain. The boss of Britishsupermarket group Sainsbury's Mike Coupe last weekhighlighted the danger of Britain talking itself into arecession.

A survey published last week showed British consumerconfidence suffered one of its biggest drops in 21 years in thewake of vote, though many British firms have said it is too soonto predict the consequences of Brexit.

Martin said Wetherspoon's trade had actually strengthenedslightly in recent weeks and he anticipated a "modestly improvedoutcome" for the current financial year.

British luxury brand Burberry and online fashionretailer ASOS have both said they expect to benefitfrom the depreciation of the pound versus sterling in the wakeof the Brexit vote.

Shares in Wetherspoon, up 9 percent over the last threemonths, were up 2.6 percent at 761 pence by 0856 GMT, valuingthe business at 853 million pounds.

For the 11 weeks to 10 July sales at Wetherspoon's pubs openover a year increased by 4.0 percent, while total sales were up3.8 percent.

The full-year operating margin before exceptional items andbefore a 3.8 million pounds gain on property was forecast at 6.8percent, compared to 7.4 percent last year. (Reporting by James Davey. Editing by Jane Merriman)

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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