25th May 2007 07:02
Regent Inns PLC25 May 2007 25th May 2007 Regent Inns PLC Regent Inns PLC provides the following trading update as at 25th May 2007 Current trading - Entertainment Bars After an encouraging start to the period following the anniversary of thelicensing changes, third quarter like-for-like sales continued to be positive.For the 17 weeks to 31 March 2007, like-for-like sales were up 2.6% year onyear. However, the start of the fourth quarter has seen a more challenging highstreet trading environment and less favourable like-for-like sales which, atlevel year on year, are below our expectations. As previously highlighted, Junelike-for-like sales will be lower than last year due to the exceptionally strongtrading experienced during the 2006 FIFA World Cup. The Entertainment Bars business is well positioned in the market and continuesto deliver strong cash flow. We are confident that a number of initiatives,which are currently underway, including the completion of improvements toexternal areas in readiness for the ban on smoking in England, should ensurethat the business remains well positioned going forward. Current trading - Old Orleans Two major landmark sites, Thurrock and Epping, closed during the third quarterfor major refurbishment, and are due to open in mid-June and mid-Augustrespectively. Recovery in trading in the Old Orleans business, however, has beenslower than originally expected. Investment in a number of key areas, includingminor refurbishments, staff development, site maintenance and further refinementof the food offer, is underway. However, these investments are later thananticipated, due in part to delays in landlords consenting to assign propertyleases. The Board is confident that, once the Group's plans have been fully implemented,Old Orleans will be well positioned in the fast-growing casual dining arena andcapable of delivering substantial returns on investment. Outlook While the medium term outlook remains positive, the above factors will result ina short-term impact on the Group's profitability, which for the full year willbe below current market expectations. As the business continues to benefit fromstrong cash flow, indebtedness should be in line with consensus. - Ends - Enquiries: Regent Inns plc 020 8327 2540Bob Ivell, Executive ChairmanJohn Leslie, Chief Financial Officer Merlin 020 7653 6620Vanessa Maydon 07802 961 902Paul Downes This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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