Shares in struggling pubs group Yates have plunged 16% after it issued its second profits warning in two months.

The Bolton-based group said that sales fell more than 4% over Christmas and New Year in pubs that had been open at the same time a year ago.

With trading conditions worsening, the company added, annual results for the 12 months to March would be below last year's level.

Yates has so far refurbished 30 of its core 120 sites, removing Victorian-style decor and introducing a "21st century" look.

Sales at these revamped sites were up 2.1% in the five weeks to 5 January but down 9% elsewhere.

Chief executive Mark Jones, who joined from Pizza Hut 12 weeks ago, said the group had been hit by the consumer slowdown.

"There's less footfall on the High Street than last year and that means less people are coming in for a pint."

By mid-morning shares in Yates had dropped 12p to 62.5p.