JD Wetherspoon, the pub operator that specialises in cheap beer and value-for-money meals, said that it was pressing ahead with plans to open 40 pubs in the current financial year, despite a recent dip in trading.

In a first-quarter trading update, the company reported a 0.3 per cent increase in like-for-like sales in the 13 weeks to October 25, down from a 1.2 per cent increase in the first six weeks, while total sales including new pubs rose by 4.5 per cent.

Keith Down, the finance director, admitted that comparable sales had fallen by about 0.6 per cent in the past seven weeks, although he pointed out that the comparative period last year had been boosted by heavy promotions, including money-off vouchers.

“We think the underlying performance has remained broadly the same when you take into account the tough comparatives,” he said, adding that operating margins were in line with the previous financial year. Mr Down refused to speculate on green shoots: “Whatever happens from an economic perspective, we will continue to run our pubs as well as we can,” he said.

Wetherspoon opened seven new pubs in the first 13 weeks, taking its total to 737, and said that it was confident of reaching its target of 40 in the full year. Mr Down forecast that it would pass the 1,000 mark in five to six years. The finance director said that he expected to start talks soon over the refinancing of the group’s main £435 million debt facility, which expires in December 2010. He said that he was hoping to replace the debt “on a like-for-like basis” and that an equity issue was “the least likely option”. Once the new debt was in place, the group would take a decision on restoring the dividend. “It’s a question of when, not if,” he said.

Mr Down said the group would see how Christmas trading went before deciding whether to pass the VAT rise in January to customers. “It’s a difficult time to put up prices,” he said.

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