Eldridge flat after World Cup failure

SOUTHERN pubs group Eldridge Pope today issued a profits warning, blaming factors ranging from miserable weather to the Jubilee and the World Cup to the general decline in tourism.

Chief executive Mike Johnson said: 'Most people in our industry were expecting the Jubilee and World Cup to be strong but it hasn't worked out that way.'

While the group's sports pubs and Toad bar-night-clubs benefited from the football, fewer people were visiting its food and accommodation led pubs. 'Then, after England were out, even the benefit for the drinks-led business evaporated,' he said. Dismal summer weather also added to the problems, while people were put off spending during May in anticipation of the extended Jubilee weekend.

Underlying all these one-off factors, a more general downturn in tourism and consumer spending led Johnson to be pessimistic about the peak summer months.

In the face of the downturn, Eldridge, already being widely talked about as a takeover target, is reining in £5m of planned spending this year on expanding the estate, taking its total firepower for the year down to £13m.

House broker Investec cut pre-tax profit forecasts for the year from £7.7m to £6.5m. Shares in the group slumped 35p to 212 1/2p.