Regent Inns has issued a profits warning, saying its Walkabout bars estate has performed below expectations in recent weeks despite the success early in the year of a range of pricing and promotional offers.

An improved trend for the eight weeks to 28 February saw like for like sales just 4.2 per cent down, compared with 9.9 per cent down for the five weeks over Christmas and New Year. The trend has not been sustained over the past two months however.

The promotional activity in January and February reduced gross profit margins by 2.4 per cent.

A trading statement issued by Regent said that in recent weeks Walkabout sales had been adversely affected by about 12 venues which were performing consistently poorly, but that much of the rest of the estate had also performed below expectations.

As a result, the company has halted plans to open any further Walkabout sites, but will instead focus on refurbishing the chain.

It will also continue to refine pricing promotions in a bid to achieve the increase in sales seen earlier this year. This will include launching both local and national marketing campaigns.

Despite strong trading at Regent’s Jongleurs comedy clubs, the company has warned that the board expects pre-tax profits to ‘materially below’ the previous year’s.

Separately, Regent has announced the resignation of its operations director, Michael Thiele. He has been replaced, with immediate effect, by property director, David Turner.