Community pubs operator Pubs ‘n' Bars has issued a profits warning, blaming the drop in consumer spending and cut-price alcohol in supermarkets.
The group, which owns 110 pubs mainly across the south of England, said in a statement that profits would not meet expectations for the year end December 31 2008
“The current economic environment contributing to reduced consumer spending and exacerbated by cut price alcohol supermarket sales has had a negative effect on current trading,” the statement said.
“In addition, increased finance costs and higher operating costs, has led the directors to believe that profit before tax will be below current market expectations.”
The performance contrasts with strong figures last year when Pubs ‘n’ Bars saw revenues for the year ending 31 December 2007 rise by 30% to £19.9m while pre-tax profits rose by 107% to £1m.
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By Daniel Thomas
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