Subdued trading in the past six months has forced analysts to downgrade earnings forecasts for pubs operator Punch Taverns. The weak outlook wiped £115 million off the company's market value.

Like-for-like outlet profit fell 0.8% in the 20 weeks to 5 January for its leased estate. However, average outlet profit per pub was up 10% on the same period a year ago.

It was an even worse situation for its Spirit managed pubs where like-for-like sales fell 2.2%, despite a 1% increase in food takings. This equates to around 5% reduction in like-for-like sales over the last eight weeks, said analyst Matthew Gerard of stockbroker Investec. 'This is a severe deterioration over a key trading period,' he added.

Investec said it would downgrade its earnings forecasts by 8-12%, despite Punch generating an extra £10 million of cost savings. Restructuring during 2007 saw Punch sell 1,000 pubs, around 9% of its estate. It has also reorganised its field and central support teams.

Shares in JD Wetherspoon and Enterprise Inns both fell around 4% on Punch's trading update, as investors feared the similar businesses would have experienced the same troubles.

Numis, another stockbroker, said the leased pubs performance was strong, in light of the weak leisure sector conditions. It is seeking talks with the management before considering any changes to its earnings forecasts.

Analyst Kate Petton from Landsbanki said she would review her 77p earnings per share forecast in light of the 'disappointment' in leased pub trading. Petton believes that like-for-like profit in the leased division has fallen 3%. She had only forecast a decline of 1.5%.

Shares in Punch Taverns fell 7% to 575.5p in early trading on Wednesday.