A third wiped off value in two hours

The value of Jongleurs owner Regent Inns plunged by more than a third in just two hours on Momday after it issued a stark profit warning.

Around £16million was wiped off its share value as investors deserted the compan in the wake of a statement revealing that sales were falling.

The value of the business has now fallen 75 per cent over the last seven months.

Regent said like-for-like sales in the 21 weeks to November 24 had fallen 2.8 per cent. One City analyst claimed that in the last seven weeks of that period, sales were 6.4 per cent down.

The company added that England's failure to reach next year's European soccer championships would also hit profits across its empire, which also includes the Walkabout Australian-themed pubs.

In a statement it said: ‘We are no longer confident the group is able to achieve growth in pre-exceptional profit before tax in the current financial year.’

‘We remain cautious in our outlook given the trading conditions in the late-night market, the likely slowdown in consumer spending, the full impact of the smoking ban and England's failure to qualify for Euro 2008.’

Analysts have long speculated that the firm is looking for a buyer. In October, Jongleurs founder Maria Kempinska said she was ready to buy back the club chain from owners Regent Inns.

At the time she said she expects to pay up to £40million. However the whole of Regent Inns is now worth just £30 million.

The shares slid another eight per cent from their already depleted level on Tuesday.

Click here to see how the share price tumbled.

Published: 3 Dec 2007