The FTSE 250 was down 1.35% to 17,395.46 at 1547 BST.
Shares in pub chain JD Wetherspoon surged as it revealed a 10% rise in sales in the first nine weeks of the current year despite soaring costs, but warned it faced a challenge to lure drinkers back into its venues.
The company on Friday posted a loss of £30.4m before tax and exceptional items compared with a £167m loss in 2021 when Covid lockdowns were in place. Total sales excluding VAT more than doubled to £1.74bn.
Wetherspoons said there was a “significant” turnaround of £105m in free cashflow, which improved to an inflow of £21.9m in 2022, compared to an outflow of £83.3m.
“Most commentators, including most publicans, understandably predicted a post-lockdown boom, in which the public would react to enforced cabin fever by embarking on a celebratory spree, but the reality has, in contrast, been a painstakingly slow recovery in sales, for some but not all, accompanied by great inflation in costs,” the company said.
It added that the pandemic had meant “dyed-in-the-wool pub-goers” had filled their fridges with beer from supermarkets, which and it had “proved to be a momentous challenge to persuade them to return to the more salubrious environment of the saloon bar”.
Wetherspoons pulled any guidance, saying increases in labour and repair costs and the potentially adverse effects of rises in interest rates and energy costs on the economy, made firm predictions “hard to make”.
Rival pub group Mitchell’s & Butlers gained on the news.
Paving specialist Marshalls tumbled after saying it now expects the outturn for the full year to be below the bottom end of the current range of market expectations for profit of between £95.1m and £101m.
Marshalls said group revenues rose by 4% on a like-for-like basis, or by 20% once the acquisition of pitched roof firm Marley was included, to £544m in the nine months to 30 September.
Its building products division saw revenues rise 22% to £149m, with a particularly strong performance from the bricks and masonry business.
But the landscape products unit – which has the most exposure to private housing repair, maintenance and improvement (RMI) – continued to face “tough” trading conditions, Marshalls said, with revenues down 6% at £311m.
The firm continued: “The rate of contraction increased in the third quarter, to 16% compared to 1% at the half year, due to a marked softening of demand for private housing RMI in both the UK and international markets, and de-stocking in the distribution channel.”
The group said it had reducing manufacturing output, which is expected to cut operating costs by around £10m annual from 2023, and was increasing prices in response to cost inflation.
Shares in other building suppliers fell on the news, with Grafton Group, Howden Joinery and Travis Perkins all lower.
PureTech Health shares slumped after the company said it has exchanged indicative, non-binding proposals with US biopharmaceutical company Nektar Therapeutics regarding a possible combination.
Responding to press speculation a day earlier, PureTech said that it remains in discussions with Nektar about the proposal.
There can be no certainty that any firm offer will be made, nor as to the terms of any such offer, it said, adding that a further announcement will be made as and when appropriate.
Under UK takeover rules, Nektar has until 1700 BST on 3 November to either announce a firm intention to make an offer for the company or walk away.
