PUB group JD Wetherspoon has shown an improvement in trading but said high overheads and strong price competition are causing it problems.
Like-for-like sales for the 12 weeks to Sunday showed an increase of 0.9 per cent on a year earlier, compared with a decline of 0.3 per cent in the previous quarter.
But progress was hampered by pub costs, such as utility bills, wages and repair costs, remaining higher than in previous years.
The company, which has more than 600 sites, including The Savoy in Regent Street and the Grove Company Inn in Fleet Street, said: "The pub market remains competitive with continued pressure on both retail prices and costs."
Despite this Wetherspoon said it expected profits in line with expectations. In September, it cut the price of Carling lager and extended its traditional ales range.
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