Shares tumble again

The company, which also owns Walkabout Australian bars and the Old Orleans bars, had been looking for a takeover, but the credit crunch made it impossible for potential buyers to borrow the money – and formal discussions ceased in June.

Jongleurs’ Cardiff and Edinburgh branches have been put on the market, along with a portfolio of other sites.

The company posted a pre-tax loss of £58.1million this year, down from a £4.1million profit last year. The results include exceptional items totalling £54.1 million.

Over the company’s financial year, which ends in July, revenue fell 2 per cent to £148.1million, with like-for-like sales down 7.5 per cent

But since then, trading has been even more difficult. Like-for-like sales for the 15 weeks to October 12 were down 13 per cent from last year. As well as the general economic climate, the company blamed the smoking ban which came into force in England in July 2007.

A statement to the City said: ‘From November 2007, entertainment bars and, in particular, Walkabout, which is by far the largest of the group’s businesses in terms of revenue, profit contribution and cash flow, suffered a major downturn in activity.’

To try to combat the slump, Jongleurs is putting on more of its lucrative Christmas shows this season, and will soon be introducing a new website to try to increase advance sales. The company will also be intruding drinks promotions to encourage customers to stay longer after the comedy show has finished.

Chairman Jim Glover said: ‘Market conditions for high street bars and for late night businesses in particular, have significantly deteriorated in the course of last year.’

‘The overall decline in consumer spending, which has resulted from the credit crunchcrisis, has had a major impact on our trading in the late-night bar market which...have adversely affected Regent's sales from November 2007 and continues to be a major challenge.’

Published: 16 Oct 2008