Eldridge Pope reports sales dip

After a strong first-half performance with like-for-like sales growth of 2.5%, pub company Eldridge Pope said trading in the third quarter (April to June) had been disappointing with like-for-like sales falling by 4% on last year.

It added that, with prospects for the final quarter not improving, it expects full-year profits to be below market expectations.

The group said a disappointing tourist trade and the World Cup had led to a poor start to the summer in its food and accommodation businesses.

In a statement, the group said: "With no indication that UK and overseas tourism will improve, continued poor weather and economic uncertainty, the outlook for the peak summer months is below our original expectations."

It added that it now planned to spend £13m on new capital investments in the current financial year, compared with £18m last year. It said it did not plan to invest the further £5m it had previously budgeted, as it believes the downturn in trading has not yet been reflected in the property market.

Despite the cut in capital expenditure, Eldridge Pope plans to open two more of its themed Toad bars this year.