Regent Inns warns of weak profits
The company has also been affected by a slower than expected recovery at its Old Orleans business, which it acquired last year.
While Regent said the medium term outlook remained positive, profits for the year to the end of June will be below current market expectations.
Regent said its entertainment bars - Walkabout and Jongleurs comedy clubs - achieved a sales rise of 2.6% in the 17 weeks to March 31.
But sales since the start of April have been flat on a year earlier, which Regent blamed on a challenging high street trading environment.
Earlier this week, Harvester owner said recent interest rate rises were having an impact on its mid-market pub restaurants.
Regent warned that figures for June were expected to be lower than last year due to comparisons with exceptionally strong trading in the 2006 World Cup.
It pointed out that a number of initiatives, including the completion of improvements to external areas in readiness for the English smoking ban, should ensure that the business remains well placed.
At Old Orleans, which Regent bought from last year, investment in the estate has been carried out later than anticipated, partly due to delays in landlords consenting to assign property leases.
Regent said that once its plans have been implemented, including minor refurbishments and staff development, the estate will be in a position to deliver ’substantial returns’ on investment.
However, the short-term factors will result in group profits missing expectations. The consensus in the City had been for a figure of around 10.3m, slightly lower than the 10.6m reported a year earlier.
The company has 63 bars in its Walkabout and Jongleurs estate, with another 31 Old Orleans.
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