7th Jul 2005 07:00
Regent Inns PLC07 July 2005 7 July 2005 Regent Inns plc ('the Company') Pre-Close Trading Statement The Board of Regent Inns plc is pleased to report that trading for the 52 weeksended 2 July 2005 is ahead of its original expectations, as anticipated in thestatement on 8 June 2005. Overall like-for-like sales for the 52 weeks ended 2July 2005 increased by 1.8% over the previous year despite strong June 2004comparatives from Euro 2004 football. The like-for-like sales increase in thebranded business was +2.0%. In particular, we have seen a strong tradingperformance from our Central London venues with like-for-like sales up over 6%.It is pleasing to report that the uplift in sales has not been achieved at theexpense of gross liquor margin, which remains broadly in line with that achievedin the first half. Since October 2004, we have rigorously reviewed the product range, pricingstrategy and consumer offering across the Walkabout estate, our largestbusiness. We are pleased with the progress achieved in this area, evidenced bylike-for-like sales growth in the second half of +4.6% (+7.3% excluding June).We are now applying the same rigorous review process to the Jongleurs/Bar Risabusiness. Capital expenditure on the estate in the year ended 2 July 2005 was in line withprevious estimates at approximately £8 million, being marginally below thedepreciation charge, with the main focus being on the improvement of customerfacilities at Walkabout units. We believe this is an appropriate annual level ofcapital expenditure for the existing estate allowing replacement of assets andcyclical refurbishment of units where necessary. As outlined earlier in the year, central headcount and cost have been reducedequating to an annualised saving of approximately £1.5 million. As a result of good cash generation, the Company's net bank debt has beenreduced further during the second half and was less than £60 million at 2 July2005. The Company is now highly focused on delivering shareholder value throughgrowing profits and generating cash flow from its existing operations. The Boardalso believes that the Company is a strong platform from which to lead sectorconsolidation in what is a very active market place. Bob Ivell, Executive Chairman, said: "We are delighted with the progress achieved over the last nine months. We haverestored financial stability, improved trading performance and achieved headoffice cost savings. We remain committed to continuing to deliver value for ourshareholders in the future." - Ends - Enquiries: Regent Inns plc Tel. 020 8375 3000Bob Ivell, Executive ChairmanJohn Leslie, Chief Financial Officer Merlin Tel. 020 7653 6620Paul DownesVanessa Maydon 07802 961902 (mobile)Rebecca Penney 07795 108178 (mobile) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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