Pubs operator Eldridge Pope today warned that annual profits would not meet market hopes after a sales slump at its managed estate.

The company blamed intense competition on the high street and disappointing food sales for the 5.6% drop in like-for-like sales among its portfolio of 70 managed outlets.

This offset a positive performance from its 43 tenanted pubs which were trading in line with expectations in the 26 weeks to April 3, with like-for-like sales ahead 4.1%.

Eldridge Pope has been battling to turn around its performance since sliding into the red in June, launching a "back to basics" approach to reducing the firm's debts.

This tactic has seen cuts in labour costs and the disposal of underperforming sites, including 18 outlets to Inntown Pub and Property Company for £3.9 million in October.

The company said significant progress has been made in reviving its fortunes but added: "In the light of current trading, the board is reviewing further actions to improve performance."

Dorchester-based Eldridge Pope owns 43 tenanted pubs and 70 managed pubs in the south of England, including 23 outlets branded as Toad.

The group said five pubs earmarked for disposal in December had put a significant drag on the performance of the group, but were not included in the comparisons of like-for-like sales.

Friday April 30, 2004