Regent Inns posts £58m loss

Walkabout operator Regent Inns has posted a pre-tax loss of £58.1m in what the group described as "the most challenging year" in its 31 year-history.

The credit crunch and the smoking ban had combined to hit the group's entertainment bars, which as well as Walkabout include the comedy club chain Jongleurs. Regent said "over half" of its 49 Walkabout outlets had no facilities for smokers.

Reporting figures for the year to June 28, 2008, the group said overall turnover fell two per cent to £148.1m, while like-for-like sales were down 7.5 per cent.

Operating profits before exceptionals were down 55 per cent at £6.1m, while the group posted a post-exceptional operating loss of £52m. Underlying pre-tax profit was £100,000.

The group said its cash flow operating activities was £15.3m, versus £24.4m in 2007.

As with 2007, Regent said it wouldn't be paying a dividend to shareholders this year.

Chairman Jim Glover said its proposed sale and leaseback of a number of its Walkabout sites had been shelved as the current market conditions meant a transaction "of this nature would not deliver a satsifactory outcome for any of our stakeholders at this time".

However he stressed the group's banks were "very supportive" and covenants relating to Regent's banking facilities were not dependent on such disposals.

Glover added that a number of "revenue maximisation" plans were being implemented, including what he described as a "revised and refocused beverage pricing policy…increased targeting of the student market and a renewed emphasis on late night innovation".

A "significant head office restructuring" had resulted in a 23 per cent (£1.5m) fall in central head office costs, the group said. It added it was working with a team of specialist retail consultants "to realise significant improvements in labour productivity and efficiencies in other operational costs".

On current trading Regent said like-for-like sales for the 15 weeks to October 12, 2008 were down 13 per cent on last year, although it pointed out the same period in 2007 contained strong trading during the Rugby World Cup.

Regent's shares were unchanged at 2.1p.