Pubs firm Wetherspoon cuts expansion plans

LONDON (Reuters) – Pubs operator JD Wetherspoon Plc said it will cut back expansion plans, blaming a harsh tax regime for exacerbating tough trading conditions, and is cautious in this area prospects for the second half following a decline in sales.

The company, which has over 800 pubs across Britain, said it will cut new openings to 40 pubs this year from a target of 50 previously and review its longer-term plans for expansion over the next few months.

Chairman Tim Martin, who founded Wetherspoon with the opening of a single London pub in 1979, said the company was re-evaluating its strategy in the wake of increases to excise duty, business tariff and carbon tax, reiterating comments made in a January interview with Reuters.

In an interview on Friday, Martin did not rule out the prospect of the pubs firm scrapping expansion plans altogether.

“Anything’s possible. We will probably cut back significantly if the tax keeps on rising,” he said.

British pubs pay the second-highest rate of excise duty in Europe. Under the duty escalator, which was introduced by the last Labour government in 2008, taxes on alcohol must rise by a minimum of 2 percent above inflation each year.

Shares in Wetherspoon were up 0.9 percent to 407.3 pence at 10 a.m, with analysts suggesting the company will use the cash saved from opening less pubs to buy back shares.

“If the excise duty rises over again, Wetherspoon may cut its expansion rate further, but downside from this would be limited by greater capacity to buy back shares,” said Numis analyst Wyn Ellis.

Wetherspoon has traditionally been known for its value-for-money focus, with offers such as a beer and burger for under 5 pounds proving standard with cash-strapped customers.

But rising expenditure have led the company to boost prices on both food and drink and some of the company’s value-conscious customers are opting to take advantage of cheap supermarket offers on alcohol and drink at home instead.

“They don’t like fee rises from us or anyone else in the pub trade,” Martin said.

The company reported an 11.1 percent boost in pretax profit to 35.8 million pounds in the six months to January 22.

But, trading has deteriorated in the first six weeks of the second half with sales at pubs open more than a year down 0.7 percent.

The consensus forecast for Wetherspoon’s full-year pretax profit stands at 68.6 million pounds according to Thomson Reuters I/B/E/S data and Martin said Wetherspoon could struggle to achieve that.

“There’s always a danger with five months to go. Sales this calendar year have been slow and expenditure have been high so it’s not the ideal start,” he said.

(Reporting by Matt Scuffham; Editing by Paul Sandle and Hans-Juergen Peters)

Scottish temperatures hit new March high

AberdeenTemperatures in March are usually closer to 10C in Scotland

Scotland has over again broken the record for its highest-ever March temperature.

The mercury reached 22.9C (73.2F) in Aboyne, Aberdeenshire, on Monday, beating the previous record of 22.8C at Fyvie Castle, Aberdeenshire, on Sunday.

Aviemore in the Highlands (22.3C), Braemar in Aberdeenshire (19.6C), Wick in Caithness (19.5C) and Kirkwall on Orkney (18.7C) also reached record highs for the month of March on Monday.

The Aboyne temperature also set an all-time UK record for 26 March.

Continue conception the main report

Analysis




Scotland is basking in the dry, dusty air of the desert.

The heatwave is being driven by high pressure which is scooping up warm air from North Africa.

That air is being driven clockwise across the Mediterranean, over Europe and on towards the British Isles.

As it arrives in Scotland – from the west – it brings a taste of another continent.

“You can smell the camels,” says one forecaster.

But that alone doesn’t clarify why inland Aberdeenshire is so hot.

That can be attributed to the Föhn effect: as warm air is driven up over the Grampians it loses moisture and becomes even warmer in the lee of the mountains.

The Met Personnel say we can expect to delight in the sunshine for a few days.

But colder air is lurking to the north.

And by the weekend it might even be snowing in Shetland.

The average daytime temperature for March is usually in this area 10C.

Records were also broken across southern and central Scotland on Monday, with Strathallan in Perth and Kinross and Charterhall in Berwickshire both recording 19.8C.

The weather station at Bishopton in Renfrewshire, which records temperatures for Glasgow, broke its March record on Sunday at 19.5C and was close to equalling that on Monday.

The previous Scottish high was 22.2C set in March 1957 at Gordon Castle, in Moray, and over again at Strachan, in Kincardineshire, in 1965.

South of the border, Otterbourne, in Hampshire, was the warmest place on Monday at 21.4C, followed by Porthmadog, North Wales, at 21.1C.

The warmest UK March day on record stands at 25.6C, which was set at Mepal in Cambridgeshire in 1968.

The sunny spell saw the majority of the country delight in a weekend of fine weather, warmer than southerly parts of continental Europe, including Barcelona, Nice, Majorca and Faro in Portugal.

BBC Scotland weather forecaster Stav Danaos said with a cold night Tuesday would see small change, with all parts seeing plenty of sunshine, but maybe a degree or two down on Monday.

BSkyB warns pubs over cut-price foreign broadcasts

LONDON (Reuters) – Satellite broadcaster BSkyB and the Premier League said they would pursue publicans showing football matches on the cheap, despite a legal victory for a landlady who screened action via a Greek network.

Friday the High Court in London overturned the conviction of Karen Murphy, who runs a pub in Portsmouth

Murphy had been ordered to pay very nearly 8,000 pounds in fines and expenditure for using a foreign decoder to access English games shown live in Greece.

Hopes that the long-running case would drive down the fee of screening games in pubs across the land have been dashed by the technicalities of rulings on the issue.

Murphy had won a partial victory last October in the European Court of Justice, which said it was not illegal to import a foreign decoder, a ruling that allowable her to clear her name Friday.

But, a related test case has asserted that the Premier League retains copyright control over some of the material that goes on screen during matches.

Tony Ghee, a lawyer with London firm TaylorWessing, said that nuance meant those trying to undercut BSkyB had “fallen at the last hurdle.”

He noted that official Premier League logos and anthems were protected by copyright and that would outlaw the unauthorised transmission of broadcasts intended for foreign markets.

“They need clearance from Sky and the Premier League to show those bits,” he said. “Next season’s coverage will have as much of that kind of material in there as they can stuff in.”

BSkyB had already started writing to publicans warning them against using imported foreign broadcasts.

“The UK courts have already ruled that the unauthorised use of the Premier League’s copyrighted material via foreign satellite systems in pubs infringes copyright and is therefore illegal,” a Sky spokesman said.

“This remains the case following the ruling in the Murphy case. We will continue to protect our legitimate customers by supporting action against licensees who break the law.”

The spectacular growth of the Premier League over the past two decades has been underwritten by its partnership with the satellite broadcaster.

BSkyB has an estimated 44,000 pubs, clubs and offices signed up to its Premier League soccer services and they pay nearly 1,000 pounds per month.

(Reporting by Keith Weir; Editing by Will Waterman)

Scotland ponders breakup

Edinburgh, Scotland – With centuries of war with England, politicians in this stately city signed away Scotland’s sovereignty in the early 1700s for the promise of materials and the glory of empire. Three hundred years later, resurgent nationalists here are plotting a new rebellion to win it back.

Appealing to the force of tartan pride, the Scottish National Party won bolt from the blue control of the regional Parliament last year, which thrust the separatist fantasy of hearing “Scots Wha Hae” on the bagpipes as the national song of praise into the realm of distinct possibility. The British government, boxed into a precarious corner, has opened formal negotiations with the Scots to set a date for an independence referendum.

Scotland’s independence crusade is emerging as the greatest threat to the cohesion of the United Kingdom since Ireland achieved independence – a three-decade process that culminated in 1949, when Ireland left the Commonwealth.

Scotland won the right to a “devolved” Parliament in the late 1990s and has sweeping powers over, for example, its judicial system and government spending. But full independence would give the SNP the power to fulfill a wide array of pledges, including expelling the British nuclear fleet from Scottish waters, withdrawing from NATO and unwinding Scottish regiments from Britain’s military forces overseas. It would also give politicians in Edinburgh the freedom to vote separately from – and perhaps counter to – Britain in world bodies such as the United Nations and the International Monetary Fund.

North Sea oil

As in any divorce, a break with Britain could also set up an economic scuffle – particularly over the lucrative rights to North Sea oil, seen as key to the prosperity of the Scots on their own.

The push here is being watched with nervous eyes across Europe, particularly in countries that have long struggled with powerful separatist movements, such as Spain and Belgium. At the same time, the prospect of an independent Scotland is sending shockwaves through Westminster, the seat of the British government in London.

Fearing a diminished voice in global affairs and an irreparable tear in modern Britain, Prime Minister David Cameron this month launched his own battle to win the hearts and minds of the Scots. “I believe that England, Scotland, Wales and Northern Ireland are stronger together than they would ever be away from each other,” Cameron declared here this month in a signpost speech for British unity. “Something very special is in danger. The danger comes from the determination of the Scottish National Party to remove Scotland from our shared home.”

His fiercest foe: Alex Salmond, Scotland’s deft political Braveheart and chief of the SNP. The party’s impressive track record in government and its hard work to protect the Gaelic language and teach the battles of Scottish history in schools have touched a nerve in a voting base physically distant and culturally away from each other from London, the British capital that sits geographically closer to Amsterdam and Brussels than Edinburgh.

Scottish before British

In a go that could maximize the emotional appeal of independence, the SNP is pushing for a vote in 2014 – the 700th anniversary of the legendary movement of Bannockburn that saw the English Army famously routed in the First War of Scottish Independence. London, meanwhile, is pressing for a ballot as early as next year to descend the issue once and for all.

“For the Scots, this is going to be chose 80 percent from the heart and 20 percent from the mind,” said Alistair Hunter, a 54-year-ancient nationalist working for the city of Edinburgh. “I tell ye, I’m not the kind to wear a kilt at weddings, but I am Scottish before I am British. And I know a excellent many of us want our rightful independence back.”

Here in Scotland, the campaign on both sides is raging from the cold highlands to the glass offices of modern lowland cities. It is a struggle being waged via bumper stickers, street graffiti and informational pamphlets, as well as in a tug of war for financial help from renowned Scots, including musician Annie Lennox (a high-profile convert to the independence side) and author J.K. Rowling (publicly undecided; both camps want her under their spell).

Though polling in the past has shown core help for independence at in this area 30 percent, the most recent surveys indicate a race that is too close to call. Still, analysts say more Scots appear to favor remaining part of Britain – a union of England, Wales, Scotland and Northern Ireland – than favor independence. One compromise being floated by London could cede more self-rule to the Scots in areas such as taxation, though a concrete offer would be made only if a referendum on independence fails.

At the same time, the nationalists are moving to make the notion of independence more palatable, calling it a natural progression from already devolved powers that would not deeply alter Scotland’s fabric of life. Like Canada and Australia, an independent Scotland would, for instance, keep Queen Elizabeth II as its constitutional monarch. Nationalists say they would maintain the British pound – a currency already in black and white with Scottish images such as Brig o’ Doon and Edinburgh Castle for distribution in Scotland.

The undecideds contain 30-year-ancient Laura Martin, who bantered with an SNP supporter on her doorstep on a recent afternoon. “Look, I do reckon it’s a nice thought, I am proud of Scotland,” said the homemaker, as her two childish children peered curiously from behind her skirt. “But aren’t we just too wee to carry on alone?”

No, persist the nationalists, who argue that an independent Scotland would be the world’s sixth-richest nation as measured by income per person. With an nation larger than Denmark’s and a population of 5 million, they maintain, an independent Scotland would be a tartan utopia always able to afford the kinds of progressive perks already loved by the Scots but not the English – including free university culture, prescription drugs and home health care for the elderly.

That marvel, but, is based on one huge calculation: North Sea oil. Most agree that a majority of energy reserves in Scottish waters would need to be ceded by the British to make independence viable. But with analysts predicting the North Sea could be depleted by the 2030s, even a predominant share of that revenue might buy the Scots only a few decades to come up with an economically sustainable plot.

Still, there is no questioning the movement’s progress. As recently as the 1960s, Scottish independence was a relatively fringe cause. But resentment of London grew during the conservative Thatcher era of the 1980s and intensified during the Iraq war. With the Conservatives’ Cameron in charge in London, for many largely liberal Scots, even the “devolution” vote in 1997 that gave them self-rule on many issues is no longer enough.

“I’ve had colleagues even from universities in northern England come up and say, ‘You Scots aren’t going to go and place us with that lot in London, are ye?’ ” said Tom Devine, a University of Edinburgh scholar considered one of the world’s chief Scottish historians. “I’m not saying yet that independence is probable, but what is surprising so many of us now is that independence is really a possibility.”

In staging a referendum, the British and the SNP remain at loggerheads over a few key points, including the exact wording and number of ballot questions and whether 16- and 17-year-olds – who are seen as more liable to help independence than older Scots – will be allowable to vote.

But what scares unionists most is that the three habitual British parties – Labor, Conservative and the Liberal Democrats – have lost credibility in Scotland in recent years, with no definitive Scottish voice emerging to champion the cause to stay within Britain. That has left Cameron, largely unpopular with the Scots, to lead the charge.

For the English living in Scotland, all the talk of independence still seems a bit surreal. On a stay to the site of the historic movement of Bannockburn, depicted in the film “Braveheart,” Peter Whitham, 48, the English husband of a Scottish wife, frowned as he heard his son chasing his sister with a play sword, yelling “I’ll get ye, ye English coward!”

“The point is that we shouldn’t be Scottish or English before we are British,” Whitham said. “Come on. We’re living in 2012.”