UPDATE 1-Wetherspoon Q1 sales up but dividend under threat

* Q1 like for like sales up 1.5 percent * Investigating refinancing options * FD fails to rule out cutting or scrapping dividend

(Writes through, adds detail)

By Matthew Scuffham

LONDON, Nov 4 (Reuters) - UK pubs group JD Wetherspoon Plc (JDW.L) reported a 1.5 percent rise in like-for-like sales in the first quarter of its financial year on Tuesday but declined to rule out cutting its dividend as it investigates refinancing options.

The group, which has over 700 pubs in the UK, said in a trading update it had made an "encouraging start" to the year and remains in a sound financial position.

However, it said a $140 million debt facility is due for renewal in September 2009 and it is looking into potential refinancing options including its possible repayment in full from current cash flow and existing facilities.

Wetherspoon said it is continuing to review the use of cash generated by its operations, across capital expenditure, debt repayment, share buybacks and dividends.

In an interview with Reuters, Finance Director Keith Down confirmed that could mean that the dividend could be cut or even scrapped.

"I think you'd have to say that it is possible but if we manage to trade well, if we refinance and generate cash, then our aim would be to pay a dividend and carry on trading as normal. But I don't think we can rule anything out in the current environment," he said in a telephone interview. (Editing by David Holmes)