Regent Inns "cautious"
Friday, 02 Nov 2007 09:02
Regent Inns says a slowdown in consumer spending could hit its pubs
Pub group Regent Inns has warned that a likely slowdown in consumer spending could impact on its business in the coming months.
The gloomy forecast came as the company reported a one per cent year-on-year drop in like-for-like sales over the 14 weeks to October 6th.
But the company stressed that sales over the period were measured against last year's strong comparable figures, with sales then having benefited from the hot summer of 2006 and the final stages of the football World Cup.
Regent Inns said its Jongleurs chain of comedy clubs had enjoyed a "marginally better performance" than its Australian-themed Walkabout bars over recent weeks.
Meanwhile the company stressed that trading after October 6th had been influenced by the participation of England's rugby team in the semi-final and final of the sport's World Cup.
Walkabout sales benefited "significantly" on the days of the matches, Regent Inns revealed, although it said that sales at its Jongleurs venues and Old Orleans chain of restaurants simultaneously dipped.
The company also reported that its bars with outside areas had performed more strongly following the implementation of the smoking ban in England, which came into force on July 1st. Sales at such venues are up 2.1 per cent on last year, Regent Inns confirmed.
But looking ahead the group struck a cautious note about the prospects for its Entertainment Bars division, amid the uncertain economic climate and the question mark over the participation of England's football team in next year's European Championships.
"As previously stated, the board remains cautious in its outlook for Entertainment Bars given the increasing likelihood of a slow-down in consumer spending, the full impact of the smoking ban and the uncertainty over England's participation in Euro 2008," Regent Inns said.
"However, the board is confident that investment in Old Orleans, along with operational improvements to the business will deliver growth," the company added.