Birmingham-based Mitchells and Butlers yesterday rejected claims it faced a cash crisis.
It hit back at an unnamed equity analyst who had maintained the firm might have to cut capital investment in order to retain the dividend payment, and needed an injection of finance.
The Birmingham pub group said in a statement from its board that "the comments are without any basis and Mitchells & Butlers categorically refutes these suggestions".
It went on: "The group has borrowing facilities to meet all of its financial requirements.
"The company has no requirement for any capital injection to meet its existing funding needs.
"It has fully adequate headroom against its facilities and this position is expected to improve further as the group continues to generate strong cash flows.
"The group has all the necessary funding in place to support its existing dividend policy and its investment programme.
"Trading in the business continues to be resilient, with buoyant food sales, strong drinks market share gains and continued improvements in productivity. As a result, we expect to report a robust performance at the interim results in May."
The board expects to announce the conclusion of an on-going strategic review by the end of May.
The All Bar One and O'Neill's pubs operator has become a takeover target.
Private equity firms CVC and Blackstone are reported to be interested in acquiring a share of the business but M&B has so far not made any comment.
Last year M&B abandoned a property deal after making a £274 million loss on currency hedging.
Yesterday shares were down 12.5p at 340p.
