Founder and chair of JD Wetherspoon, Tim Martin, is to step down to become non-executive chair of the pub group from the beginning of next month – paving the way for managing director, John Hutson, to become chief executive officer.

Martin, who is nearing the end of a six month sabbatical, will work approximately two days a week and his executive responsibilities will be shared between the remaining executive directors and management.

“As a result of the talent, dedication and long service of our management team, I am confident the changes will result in a continued good performance, as has been demonstrated by the results of the last six months during my sabbatical,” he said.

The announcement was made as Wetherspoon revealed interim results for the six months to 25 January.

Sales grew by 11 per cent to £389m, operating profit was up 10 per cent to £38.6m and pre-tax profit was up 9 per cent to £27.8m.

Martin said profits were slightly higher than anticipated, partly due to the late implementation of new licensing legislation meaning a delay in associated expenditure and also lower than expected costs for the company’s new employee share scheme.

During the six month period, Wetherspoon sold 10 pubs and one development site and opened eight, for a total of 633 pubs.

It has also refinanced its banking facilities, arranging a new £250m, five-year facility to cover medium term expansion plans.

Prospects for the year ahead look healthy, with sales last month increasing by 8 per cent and like for like sales up 3.9 per cent.

Three further pubs opened last month and a further 12 sites are under construction with a total of 30 expected to be opened during the current financial year.

“As a result of continuing good like for like sales growth, combined with strong organic cash flow and our dedicated team, I remain confident of future prospects,” said Martin.

He noted however that the Euro 2004 football championship will take place this summer and predicts a short-term dip in sales for the period based on previous international football tournaments – the vast majority of the company’s properties do not have televisions.