Britain's biggest pub company Punch Taverns has scrapped its dividend following a decline in sales for its financial year.
Punch said like-for-like sales at its 7,560 leased pubs fell 3.4% in the year to August 23, with sales at its 864 managed pubs down 3.3%.
Britain's pubs have been hit by last year's smoking ban, rising costs, declining consumer spending, and cheap alcohol prices in supermarkets.
On Tuesday, Greene King reported a decline in like-for-like sales across its 2,500 pubs in England and Scotland over the 16 weeks to August 24, saying the poor summer weather had added to the industry's problems.
In July, Enterprise Inns, Britain's second-biggest pubs group, said its profits were under pressure from falling beer sales and the cost of helping struggling tenants.
Punch said its performance had continued broadly in line with market expectations, and it remained confident of delivering full-year pre-tax profit in line with market expectations of around £267m.
