The head of Regent Inns signalled his willingness yesterday to submit to a takeover bid as part of the next stage of consolidation in the pub industry.

Noting that consolidation was inevitable, Bob Ivell, the executive chairman, said that Regent was “well-placed to deliver value through consolidation”, either as a purchaser or as a seller.

He cited private-equity-backed rivals such as Novus Leisure, Laurel Pub Company and Inventive Leisure as possible partners. He said: “If the market gets tougher, it makes sense to put some of these businesses together.”

Analysts said that Regent was more likely to be a target after it announced a 1 per cent decline in like-for-like sales in the 14 weeks to October 6. Regent added that there was “an increasing likelihood of a slowdown in consumer spending due to interest-rate pressures”.

Mr Ivell said that he expected the smoking ban to have an impact during the winter, although he remained confident about the ability of Regent’s Walkabout sports bars and Jongleurs comedy clubs to cope with increased competition in the high street.

He said that the prospects were also strong for its recently acquired Old Orleans restaurant business, despite delays to the investment programme. Early evidence suggested that the refurbishments would drive up sales by an average of about 20 per cent, Mr Ivell said.

In the year to the end of June, Regent suffered a decline in pretax profits before exceptionals from £10.6 million to £8.3 million, which was attributed mainly to the Old Orleans delays. Turnover was 16.7 per cent higher at £148.9 million.

Like-for-like sales during the year fell by 2.8 per cent, although there were big fluctuations. Sales in the last four weeks of the year fell sharply against the strong comparatives of the football World Cup last year.

Mr Ivell said that, after a slow start, the Rugby World Cup had helped trading and he was hopeful that England would reach the final.

The recent tough trading prompted analysts to pare back their 2008 profit forecasts. Paul Hickman, of Peel Hunt, shaved 7 per cent off his pretax estimate to £10 million.

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