STOCKS NEWS EUROPE-Wetherspoon up on refinancing,div hopes

Shares in JD Wetherspoon (JDW.L: Quote, Profile, Research) gain 1.9 percent after the pubs group says it expects to complete a refinancing of its debt by March next year, raising hopes it will resume dividend payments and overshadowing a slowing in the rate of its sales growth. [ID:nL3356308]

Wetherspoon says it will start formal talks with lenders before the end of the year over the refinancing of a 435 million pound facility due to expire in December 2010.

"They should be completed well ahead of prelims in September 2010, making Wetherspoon the first pubco to restore its dividend," says analyst Paul Hickman of KBC Peel Hunt.

Wetherspoon reports like-for-like sales growth of 0.3 percent in the first quarter to Oct. 25, below the 1.2 percent growth seen in the first six weeks of the period and over the previous year.

"Although this lower LFL increase may look disappointing, Wetherspoon has proved its value-driven strength in the recession to date," Hickman says.

Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net