Shares in Enterprise Inns fell to a four-year low today after the pub group gave warning that beer sales in its pubs continue to be subdued, with industry sources suggesting that volumes may be off by 10 per cent or more year-on-year.

Marking the first anniversary of the smoking ban, Ted Tuppen, chief executive of Enterprise Inns, said: "These are testing times for the pub industry."

The group's shares today fell 13.8 per cent, or 47.15p, to 298p, the lowest point since September 2004, on the downbeat statement.

Enterprise Inns said: "Trade beer sales continue to be subdued, with industry sources suggesting close to double digit volume declines in the period from April to June.

"Consumer confidence is low and the rising costs of food, fuel, mortgage costs and taxes have put increasing pressures on disposable income and discretionary spend."

However, Mr Tuppen said he was reassured by the quality of his pub estate, and cash flow remained strong. "There has been no material deterioration in the key indicators of our licensees' financial health and sustainability," he said.

The ban on smoking was imposed in most public places on July 1 last year, and the pub trade is beginning to provide year-on-year comparisons of its effect on the industry.

Mr Tuppen, one of the most outspoken bosses in the pub trade, hit out at "the Government's ill-conceived increase in alcohol duty", which would "do little to address the much-publicised problems of anti-social behaviour and binge drinking".

He also questioned the policy of some supermarkets of selling multipacks of drinks at below cost to bring custom into their stores.

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