The Brexit supporting chairman and founder of Wetherspoons may now be regretting his decision after £18 million was wiped off the value of his shares.
Tim Martin ploughed £224,000 into campaigning to leave the EU, touring up to 100 outlets and distributing 500,000 beer mats calling for punters to vote leave, reports The Independent.
But it seems like his campaign – at least in the short term – has far from paid off. Spoons’ share price crashed from a high of £7.57 on the day of the vote to £6.68 four days later, leaving Martin around £30 million out of pocket.
The shares have now regained a bit of value but his losses still stand at an eye-watering £18 million.
Martin told The Independent:
No sensible analyst could attribute the price drop to this one event specifically. Look at the FTSE, it’s higher than it was before the vote.
He pointed out that Wetherspoons’ share price is within the range it has been for the last year and urged people to look at the company’s fundamentals:
If you try and judge fluctuations in prices day-to-day all that will happen is you’ll go completely mad and need a heavy dose of valium.
Martin also insists prospects for both his company and the UK economy have improved since voters opted to leave the EU.
A higher level of democracy always leads to higher economic growth. Look at North Korea versus South Korea, West Germany versus East Germany. The EU is not democratic.
Martin was not the only Brexit donor to suffer serious financial losses after the referendum.
Peter Hargreaves – owner of financial services company, Hargreaves Lansdown – donated £3.2 million to the Leave campaign only to see £300 million slashed from the value of his firm.
Hey, at least they can afford it…