Luminar, Britain's biggest nightclub business, has reported, as part of a trading update, a 0.6% like-for-like sales decrease in its core business.
Group sales on a continuing basis for the year ending 2 March 2006 were up 2.5% at £294m over the previous year.
Gross margins have remained stable in all segments of the business, while net margins have been diluted by increases in rent, rates and utility costs.
DancingThe company's dancing division showed a like-for-like sales increase of 2.9%, while continued investment in the group's branded units, including the Oceana chain of nightclubs, delivered increased like-for-like sales up 9.3%.
Sales in the entertainment division, including the Chicago Rock and Jumpin' Jaks, on a like-for-like basis have declined year-on-year by 6.2%.
Cashflow generation from operations and non-core asset disposals has continued to be strong, according to the company. Proceeds from the sale of 64 units across the year (including the disposal of Candu and sale & leaseback transactions) were £56.4m.
The company has confirmed it will continue to focus on disposing of non-core assets and will publish its full-year results on 18th May 2006.
ApproachLast week Mintgate Investments, an investment vehicle led by Prestbury, Nick Leslau's property vehicle, confirmed that it was contemplating an approach to Luminar.
In addition to Prestbury, West Coast Capital, Investec Trust (Guernsey) and trustees of the Tchenguiz Family Trust are co-investors in Mintgate.
Mintgate currently has a holding of 4.4m Luminar shares, representing a 6% stake.
The company's market value has increased from £350m a month ago to £450m. Mintgate said that no final decision had been made as to whether it would make a formal approach.
Luminar's share price on Tuesday held firm at 616p.