Regent revises profits down and cuts expansion plans

Regent Inns, operator of late-night high street venues, has downgraded profit expectations and cut back expansion plans.

The board said its profits would be marginally lower than expected because of "further deterioration in the activity levels experienced in the past two months".

Analysts revised down half-year profits from £15.7m to £14.4m - a drop of eight per cent. Such a statement only counts as a dreaded "profits warning" if profits are marked down by more than 10 per cent.

"Many other companies have spoken about current trading," said chief executive Stephen Haupt. "We felt it was appropriate to inform the market where we sit in all this."

The company, which operates Australian sports bar Walkabout and late-night comedy club Jongleurs, has cut back expansion plans.

In the first half of its financial year, the company opened six Walkabouts and two Jongleurs - as expected. The company also converted a site to its Pals concept.

But a statement from Regent to the stock market said: "in light of the uncertain economic outlook, the board has decided to take a more measured approach to openings for the remainder of the year.

"Accordingly, only three further Walkabouts will be opened in the second half and no further Bar Risa / Jongleurs or Pals." Bar Risa is the nightclub which sits alongside the comedy club concept.

The limited expansion will mean the Regent estate will comprise 42 Walkabouts, 15 Jongleurs and three Pals at the year end.

"The two brands [Jongleurs and Walkabout] are still averaging over £40,000 in weekly sales," said Mr Haupt. "Most of our pain on the high street has been felt in the 11 sites we bought for conversion to those sites."

The Regent boss was quick to point out that the company has not "bought sales" by pursuing an aggressive discount pricing policy like other high street operators.

"This is not a total disaster and only to be expected in the current climate," said one analyst.

The shares fell 7p to 68p.