Profits down at Jongleurs owners
Smoking ban and bank crisis blamed
Bosses at Jongleurs owner Regent Inns have blamed the smoking ban and the banking crisis for a 30 per cent fall in operating profits.The company, which also owns Walkabout and Old Orleans, today released half-year results showing ‘like-for-like’ sales slipping 3.8 per cent on last year.
Most of the slowdown came in November and December, especially in Walkabout bars. However the Jongleurs Christmas shows bucked the trend, with a growth in sales of 5.3 per cent on 2006.
Shares fell slightly on release of the report, which was widely expected. The company issued a profit warning in December and this month confirmed that it is a possible takeover target. Regent will not be paying shareholders any interim dividend.
In today’s report, executive chairman Bob Ivell 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.’
The report also said that Jongleurs ‘remains virtually unique’ adding: ‘[It] and has demonstrated its ability to trade robustly in the current difficult macro-economic environment.’
Published: 5 Feb 2008
