Companies: REG   

Late-night bar operator Regent witnessed its shares slide a further 10% after a negative trading statement. For the year to July, it announced like-for-like sales of branded operations Walkabout and Bar Risa/Jongleurs declined 5.4%. Even Euro 2004, during which like-for-like sales were boosted by 15.2%, could not stem the tide and as a result of the decline in sales and the continued pricing and promotional activity within Walkabout, profits from continuing operations are expected to be 'materially' below last year, but in line with market expectation, which was revised down after an earlier profit warning in April. Broker Arbuthnot anticipates pre-exceptional pre-tax profits to be £12m (£14m) on £120m sales. Regent has continued disposing of its unbranded estate with 14 sold and six exchanged or under offer. The remaining three are currently being marketed. Providing further misery to its shareholders, the board has gone back on its recommendation of retaining its final dividend at last year's level of 3.36p and is now recommending 1.68p, in the absence of a 'significant' deterioration in trading conditions. Regent also confirmed trading on the high street remains difficult but it will prioritise restoring stability to the sales and profitability of Walkabout and reducing its bank debt in the coming year. Arbuthnot obviously doesn't hold out much hope as it predicts pre-tax profits for 2005 to only improve to £12.6m. Avoid.