Pubs’n’Bars, the operator of 106 community pubs, today revealed that it increased sales during the first six months of the smoking ban, confounding predictions of a malaise in the sector.
The company, which focuses on wet-led pubs, said the model for community pubs remained robust despite customers being more cautious with their spending.
Seamus Murphy, chairman of Pubs ‘n’ Bars, said: “I am pleased to report a good set of results achieved under challenging conditions including the indoor smoking ban, cheap supermarket alcohol and rising duties on beer, wine and spirits.”
Revenues for the year ending 31 December 2007 were up by 30% to £19.9m while pre-tax profits rose by 107% to £1m.
The company also felt the benefit of acquiring the ten freehold pubs held by Moorgate Taverns in December.
In February the Association of Licensed Multiple Retailers said the number of managed community pubs had fallen by 10% since March 2007.
Meanwhile Regent Inns, the owner of the Old Orleans and Walkabout chains, has said it is still in talks regarding a potential offer for the company.
Regent blamed the delay in discussions, which were announced on 15 January, on global credit conditions and the difficulties in obtaining the necessary financing for the deal.
Pubs 'n' Bars acquires Moorgate Taverns >>
Smoking ban hits sales at Pubs’n’Bars >>
Community pubs collapsing under red-tape and soaring costs >>
Regent Inns sales slump by 10.9% as talks to sell the business continue >>
By Christopher Walton
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