Devon-based pub company Heavitree has warned that it will post a loss of £790,000 for the six months ending 30 April.
Heavitree has blamed the impact of the smoking ban, last year's poor weather and the current credit squeeze.
Heavitree, which owns 76 tenanted pubs, had expected to see a sales boost after investment in its estate last year but the Alternative Investment Market-listed company now expects to slip into the red.
As a result of what it describes as the "prevailing negative industry outlook" faced by pubs it has appointed consultancy Ernst & Young to conduct a strategic review of the business.
The results of the review will be unveiled at the end of July.
By Christopher Walton
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