Regent Inns issues profits warning
Walkabout operator Regent Inns has joined the chorus of operators warning of increasingly difficult trading on the high street.
Regent said like-for-like sales for the 21 weeks to 24 November had fallen 2.8% due to growing consumer caution.
Executive chairman Bob Ivell said the situation would be exacerbated by the failure of the England team to qualify for Euro 2008 next year.
The "strong" performance of its Walkabout chains during the Rugby World Cup demonstrated the business's reliance on televised sporting events.
"In light of this, the unprecedented levels of regulatory intrusion facing the industry and the increasing evidence of a slowdown in high-street consumer spending we are no longer confident the Group is able to achieve growth in pre-exceptional profits before tax in the current financial year," said Ivell.
He added that the traditionally strong Christmas and New Year trading period was still to come and it would continue to look at corporate activity opportunities where it believes the business was well placed to "deliver value through consolidation".
Pub operators Mitchells & Butlers and Marston's last week both warned of challenging market conditions and Clapham House Group has scaled back its expansion programme due to fears over consumers' appetites to keep spending.
Clapham House admits concerns about uncertain economy >>
England's football failure will boost food venues >>
Fall in customer spend will hit Regent Inns performance >>
Regent Inns hit by poor summer weather >>
Marston's fails to avoid UK's poor summer weather >>
Mitchells & Butlers considers Tchenguiz property bid >>
By Christopher Walton
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