The chairman of Pubs'n'Bars – the AIM-listed pub operator – has called on the Chancellor of the Exchequer to abolish the beer duty calculator. Revealing the pub group's unaudited interim results, chaiman Seamus Murphy said: “"In view of the many difficulties facing the on-trade, I would strongly urge the Chancellor of the Exchequer to consider abolishing the beer duty escalator. “As it stands, at a time of persistent inflation and possible recession, the duty is set to rise by 2% above inflation in each of the next four years. The effect of this is expected to make trading conditions more challenging.” In its interim results for the period prior to 30 June, Pubs'n'Bars' revenues increased by 25% to £11.2m – up from £8.9m in 2007. The company's operating profits also rose by 38% to £1.8m from £1.3m. Its profits before tax jumped to £0.58m – an increase of 7% on the £0.54m made in the same period the year before. Pubs'n'Bars said its operating profits were boosted by £323,200 – thanks to the upwards movement on derivatives, following the revaluation of interest rate swaps. Murphy added: "We are pleased that revenues and operating profits have continued to grow following the acquisitions made last year. Our operating profits are higher, boosted by a gain of £323,200; an upward movement on derivatives following the revaluation of interest rate swaps.” But he said that current cost pressures meant that the company would not be paying an interim dividend. “The wet and cool summer, the smoking ban, continued competition from cut price supermarket sales of alcoholic beverages and steeply rising gas and electricity prices, have had a considerable impact on our underlying first half performance and will continue to have an impact in the second half of the year,” added Murphy. He also said that trade in London pubs was still proving to be “resilient”.