Pubs 'n' Bars pushing ahead despite consumer downturn

Community pub specialist Pubs 'n' Bars has seen an improvement in sales despite the impact of the current dowturn in consumer spending.

Reporting its full year results for the year to the end of December, the AIM listed operator said that like-for-like sales had fallen by 1.08 per cent across the year. However, since the start of 2005 like-for-likes have edged ahead by 0.2 per cent.

Chairman Seamus Murphy, who moved into the hotseat when predecessor Mike Mealey stepped down in December, said 2005 had been "a satisfactory year in the face of very difficult trading conditions for the industry."

Pre tax profits fell to £1.2m from £1.3m in 2003, which included some one-off charges relating to compensation for outgoing directors. The total dividend for the year is unchanged at 1.75p.

A three-year programme to switch food-led businessesfrom managed houses to tenancies was completed during the year, improving margins despite a fall in turnover.

Mr Muphy said that "overall, trading throughout the estate proved resilient to the problems and deterioration in sales that have been reported by some of our competitors, particularly those trading on the high street."

However, he warned: "Since the year end, there has been a noticeable downturn in consumer confidence and spending."

The company operates 65 pubs of its own as well as managing the 32 pub Community Taverns estate for owner Royal Bank of Scotland. Pub 'n' Bars "will continue with our policy of acquiring pubs that meet our criteria, in particular freehold community pubs," said Mr Murphy.

He added: "Like other responsible pub operators we share the current disquiet about 'binge drinking', but rather than direct blame solely at pubs and clubs, the industry's critics might well direct their attention to cut-price beer promotions by supermarkets, and also the trade in cheap imported beer, wine and spirits."