Poor performance at Regent Inns

Walkabout, the Australian-themed pub chain, has been hit by the loss of late-night drinkers, either because they have somewhere else to go or because they are unable to smoke.

Regent Inns, the parent company of Walkabout and Jongleurs comedy bars, have admitted that sales are still declining after a fall in profits in 2006. The group announced pre-tax profits of 21% at £8.3 million for the 12 months to the end of June. The group also said like-for-like sales were down another 1% since then.

Regent warned on future consumer spending as it delivered full-year results in line with market expectations. The company was hit by the poor summer weather and comparisons to strong trading in 2006 following last year’s World Cup in Germany.

Increased competition for late-night drinkers since the arrival of 24-hour drinking nearly ago has thought to be responsible for the poor performance.

However, pubs with outside smoking areas have grown by 2.1% while food sales are up 8.5%.

Executive Chairman, Bob Ivell, said the group is cautious about the outlook and environment for consumer spending, but Regent’s strong brands are well placed for underlying future growth and they continue to invest in achieving that.

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