Luminar unfazed by smoking ban

Dance venue operator Luminar has reported that the smoking ban has had a "marginal impact" on first half trading performance.

Announcing its figures for the six months ending August 30 2007, the group said while it was too early to draw definite conclusions, "our experience to date suggests that there has only been a marginal impact on sales within the dancing division".

However the group, which hopes to brand the significant majority of its venues by 2009, admitted it had seen "weaknesses" in its unbrandable units.

Luminar said it provided smoking terraces or accessible smoking areas "where possible", and scenting machines were fitted to air conditioning equipment in all of its 100-plus venues, although it was yet to find a suitable smoking solution for 11 sites.

Turnover from continuing operations for the six months to August 30 rose 3.5 per cent to £99.3m, while pre-exceptional pre-tax profits were up 55.6 per cent to £12.6m.

Gross margins were slightly lower compared to last year, the group said, as a result of investment in promotions during the quieter months of July and August.

Luminar recorded a loss of £1.9m relating to its 49 per cent holding of 3D Entertainment, to whom it sold nearly 100 units last year, of which seven are currently closed. Luminar said the loss was due to "accelerated development and investment activity".

The group said trading in the first eight weeks of the current year saw sales throughout its 81-strong dancing division up 1.8 per cent, with turnover at its 42 branded dancing sites up 11.8 per cent.

Some analysts meanwhile estimated that Luminar could return to shareholders up to £40m a year for the next four years, having already paid out £77m in share buybacks to date.

Luminar's shares were down 17p at 615.5p this morning.