Although like-for-like sales at its mixed, unbranded estate were ahead 2.3% during the first half of 2002, Pubs'n'Bars' pre-tax profits declined from £541,240 to £513,831. This was due to higher rents and the loss of revenue from transferring some managed pubs to tenanted ones. Turnover declined from £7.3m to £7.2m for the 6 months to June. The number of pubs remained stable at 66, as 3 were acquired and 3 disposed of during the period, all at prices above book value. The group had intended to grow quickly by acquisition, but has been held back by debts and asking prices. Net debt stands at £12.8m and interest payments take up 41% of operating profits. Pub investors would be better off looking at Ultimate Leisure, Belhaven or Burtonwood, though could be hopes of a takeover based on NAV of £9m, a 25% premium to the market value. But don't hold your breath.