Pub group JD Wetherspoon said it was “cautiously optimistic” about the current financial year after its 25-week sales results, which includes Christmas and New Year.

The company, which has more than 840 pubs, is still nursing its bruises from the pandemic, energy costs rises and taxation.

In an update on its current trading position in the 25 weeks to 22 January, the company said like-for-like sales were 13 per cent higher than the same period a year ago and 0.7 per cent lower than the same period immediately before the pandemic.

Wetherspoon chairman Tim Martin (pictured) said: “We are cautiously optimistic about the company’s prospects for the financial year.

“The biggest threat to the hospitality industry is the vast disparity in tax treatment between pubs and restaurants and supermarkets.

“Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20 per cent. This tax benefit allows supermarkets to subsidise the selling price of beer.

“We estimate that supermarkets have taken about half of the pub industry’s beer volumes since Wetherspoon started trading in 1979, a process that has likely accelerated following the pandemic.

“Pub industry directors have, in general, failed to campaign for tax equality, which is an important principle of taxation.”

The company has opened two pubs in the period and has sold 10. The sale of the pubs has resulted in a cash inflow of £2.9m with 35 pubs still on the market.