Little cheer for Regent Inns

Walkabout owner Regent Inns said today it saw no signs of a trading revival last month as the impact of the smoking ban hit home and customers reined in spending.

The company, which saw itself become a bid target after issuing a profit warning in December, said like-for-likes sales continued their descent in January.

The update comes amid a flurry of takeover talk in the sector, with All Bar One operator Mitchells & Butlers currently a merger target for Punch Taverns, the UK’s biggest pub chain.

Regent, which also owns Jongleurs comedy clubs, revealed like-for-like sales for the half year to December 29 were down 3.8% on the year before – compared with a 1% fall in the 14 weeks to October 6.

Pre-tax profit for the half-year fell to £1.2m (€1.6m), down from £3.6m (€4.8m).

However, executive chairman Bob Ivell remained upbeat about the future. He said: “Despite the immediate challenges to the sector presented by the banking crisis and its impact on consumer confidence, our brands remain strong and well-positioned to take advantage of a recovery.”