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"The impact of eroding customer confidence, which was first evident last summer, has intensified - particularly over the Christmas period - with the result that pub profits will be below our earlier expectations," Chairman Sir Christopher Hogg told the AGM.
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The obvious approach – via its two components BAR and GAIN – proved understandably popular but yielded a large number of short and serviceable but ultimately somewhat uninspired clues (e.g. 'Steal pub profit') with little to choose between them.
The U.K. pub chain pretax profits for its fiscal year fell 62% to 54.3 million pounds ($89 million), after it wrote down 53.5 million pounds ($87 million) from the value of some of its stores.
Punch Taverns, the debt-laden pubs group, saw profits fall by almost a quarter last year as it cut the size of its estate.
It issued an update for the 10 weeks to last week showing a 3.7% rise in like for like sales at its managed pubs and flat profits at its tenanted outlets.
A similar arrangement will apply to the profits from pubs, cafes, restaurants and shops on the waterfront around the dome to be operated jointly by AEG and MDL.
Greene King has bucked the negative sentiment in the pub sector by posting record profits for the last six months.
Andrew Griffiths MP said pubs get 65% of other profits from beer sales, and the Treasury was losing out from fewer pubs and falling beer sales.
The result, predictably, is slow death for those pubs that never made huge profits, haven't been renovated, and aren't able to deliver enough "shareholder value".
Marston's, which owns more than 2,250 pubs, said today that like-for-like profits fell by 6% at its tenanted pubs in the 15 weeks to 17 January.
One City analyst said up to 12% could be wiped off the profits of the leading pub companies.
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