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Profits down at Regent despite boost in sales
Late night pub and comedy club operator Regent Inns has announced a 16.6 per cent fall in half-year profits, despite improving sales and turnover.
Pre-tax profits for the 26 weeks to 1 January fell to £5.9m from £7.7m the year before.
However, first-half like for like sales in the branded estate increased by 2.5 per cent and by 2 per cent in the company as a whole, while turnover rose 8.9 per cent to £67.2m and net bank debt fell by £8.4m to £62.7m.
Regent, which runs the Walkabout bars and Jongleurs comedy clubs, blamed the drop in profits on an exceptional cost of £4.3m relating to the renegotiating of bank facilities.
During the period the company also aborted a site acquisition and closed its Walkabout site in Leicester, cutting profit margins back further.
Bob Ivell, executive chair, said: “The first six months of this financial year proved to be a turbulent period for the company, with profitability being affected for a number of reasons.”
“The cost of promotional and marketing expenditure has increased due to our drive for sales growth, while the renegotiating of our bank facilities and streamlining of our business has added short term costs. In the long term, we expect these investments to generate full year savings of around £1.5m.”
Regent said it has sold three of nine unbranded pubs which have been earmarked for disposal and has a further two under offer.
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