Regent Inns hit by poor summer weather

09 October 2007 by
Regent Inns hit by poor summer weather

Walkabout owner Regent Inns has 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 off the back of the World Cup in Germany.

Performance at Old Orleans, the restaurant chain purchased from Punch Taverns for £26m in August last year, remained sluggish despite a third of the 31-strong group having now been refurbished.

Turnover in the full year was up 16.7% to £148.9m thanks to Old Orleans (2006: £127.6m). However like-for-like sales at Regent were 2.8% down on 2006.

Pre-tax profit was £6.1m up 23.5% (2006: £5m), which include £2.2m of costs to do with integration of Old Orleans into the group.

Regent's net debt for the full year stood at £74.9m, swollen by the Old Orleans purchase.

Trading performance has remained subdued in the 14 weeks to 1 October, down 1% year-on-year.

Bob Ivell, executive chairman of Regent Inns, said: "We are naturally cautious about the outlook and environment for consumer spending, but Regent's strong brands are well placed for underlying future growth and we continue to invest in achieving that."

Regent Inns to spend £4m on Old Orleans refurbishment >>

Regent Inns's Old Orleans drags the company's performance down >>

Punch sells Old Orleans chain to Regent Inns for £26m >>

By Chris Druce

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