Pubs 'n' Bars sees 3.05% fall in turnover

Pubs 'n' Bars, the Aim-listed pub operator, has reported a 3.05% decline in like-for-like turnover for the six months to the end of June following disappointing trading.

In an interim results statement released this morning, the company posted a pre-tax loss of £690,633 compared with a pre-tax profit of £128,272 last year.

The group said that trading remained difficult in the second half of the year, although the decline in like-for-like sales had been less pronounced since mid-August.

It attributed part of the decline in turnover to a change in the mix of pubs, with less pubs under management in 2009 and added that beer sales to tenants had fallen from £675,000 to £301,000 due to its major supplier entering administration.

The group saw gross profit margin fall from 68.99% to 66.77%, impacted by the continued decline in income from gambling machines.

The company confirmed that its subsidiary Moorgate Taverns had appointed administrators, but said that it was not liable for the 10 freeholds that were trading at a loss and therefore would save £150,000 per year.

It said that it was continuing negotiations with its bankers who it said were "showing a great deal of understanding and the utmost cooperation in these difficult times".

Pubs 'n' Bars in a statement said: "There can be no doubt that the smoking ban continues to adversely affect traditional community pubs like ours.

"Together with competition from supermarkets which, despite government pleas, continue to use alcohol sales as a loss leader, uncertain weather and no major international football matches to bring in customers, trading conditions were extremely difficult for the group."