Wetherspoon says its sales are still down 16.9% on a year over year basis

J D Wetherspoon (LON: JDW) blamed the Coronavirus pandemic on Monday for sales that it said were still weaker on an annualised basis. Despite the state-backed, eat out to help out scheme, Wetherspoon advocated an extension in tax relief for the United Kingdom’s hospitality sector on Monday.

Witherspoon jumped about 2% in premarket trading on Monday. At 986 pence per share, the £1.19 billion company that has a price to earnings ratio of 16.99 is currently about 45% down year to date in the stock market. Here’s how you can invest in stocks online.

Wetherspoon advocates lower VAT on meals

Wetherspoon forecast to conclude the ongoing year in loss on Monday. On its loans, the company is seeking waivers to cushion the economic blow from COVID-19 that pushed the countrywide pubs into temporarily shutting down in recent months.

Wetherspoon acknowledged that the subsidised meal scheme helped push up sales in recent weeks but warned that sales are likely to take a hit again after the scheme. The pub operator recommends the government to consider lower VAT (value-added tax) to be maintained on meals for a longer period.

The British government resorted to slashing VAT on tourist attractions, restaurants, and hotels-related spending in July from 20% to only 5%. The move was directed at fuelling demand for hospitality services after months of inactivity due to COVID-19.  

According to the Watford-based company, supermarkets established a monopoly over the demand for food and beer in recent months due to the ongoing health crisis that resulted in novel challenges for the countrywide pubs.

Wetherspoon expressed plans of cutting 130 jobs in July

To combat the economic blow from COVID-19, Wetherspoon had expressed plans of slashing its workforce by 130 jobs in July. The company said that the layoffs will primarily affect workers at its head office. It also resorted to temporarily pulling out of its expansion plans in recent months.

The pub company operates 873 pubs in the United Kingdom, out of which, 844, it added, were now open for the public.  Its bar and food sales on a like-for-like basis, Wetherspoon reported, saw a 16.9% year over year decline in roughly six weeks that concluded on 16^th August.

In separate news from the UK, Pearson named Andy Bird as its new CEO on Monday. Bird has previously served at The Walt Disney Company as media veteran for its international arm.