PUBS group JD Wetherspoon served up a note of caution yesterday as it warned annual profits may come in towards the lower end of market expectations.

There was speculation the dip may have been caused because the chain's pubs showed no football during the World Cup.

However, the group blamed higher costs for the warning but also revealed that sales growth in May and June had slowed on previous months.

Like-for-like sales last month were up 3.5 per cent, as against a 3.8 per cent jump in May. Two months ago Wetherspoon reported third quarter growth of 5.7 per cent.

Analysts had raised fears that Wetherspoon, which does not have televisions in its pubs, may have missed out during the recent World Cup.

Chairman Tim Martin admitted there was now more competition than ever for the pubs sector but cast aside doubts about the health of the business.

"I don't know how the City will view it but from our point of view it's a good performance. It's there or thereabouts," he said.

He added that like-for-like sales growth for the 48 weeks to June 30 was still 5.1 per cent and ahead of the group's rivals.

But JD Wetherspoon's shares, which have fallen by almost 37 per cent since the start of the year, were down three points in early trading yesterday.

Profit expectations for the group's financial year to July 28 range between £53m and £55.4m, up almost £10m on last year.

Mr Martin said JD Wetherspoon will have opened about 85 pubs in the 12 months, with a similar amount planned for the coming financial year