Shares in Regent Inns tumbled more than 19 per cent today after the Walkabout bars owner gave warning that it was trading below expectations.

The Hertfordshire-based group, which also owns the Jongleurs comedy club chain, said sales in the fourth quarter had disappointed on a like-for-like basis and plans to upgrade some of its Old Orleans restaurants had been delayed.

"The start of the fourth quarter has seen a more challenging high street trading environment and less favourable like-for-like sales," it said in a statement, adding that current trading would have an impact on group profitability.

Shares in the group were trading down 20.5p at 87.25p by 9am.

The company cautioned that sales growth at its American South-themed Old Orleans restaurants had not gone to plan. "Recovery in trading in the Old Orleans business ... has been slower than originally expected," it said.

Regent bought the 31-strong Old Orleans chain from Punch Taverns last September. It has closed two restaurants for refurbishment, but its plans to invest in minor refurbishments and site maintenance were delayed, in part because of negotiations with landlords.

Group like-for-like sales were positive in the third quarter, with like-for-like sales in the 17 weeks to March 31 up 2.6 per cent.

The company had previously indicated that June like-for-like figures would be lower than in 2006 because of increased business from the football World Cup last year.

City analysts took the opportunity to trim estimates, largely on the back of the Old Orleans news. Numis cut its 2007 profits forecasts by 13 per cent to £9 million.

Track Regent shares here.

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