Like-for-like sales up 1.8% at Luminar

Luminar, the quoted nightclub group, which operates the Liquid, Oceana, and Lava & Ignite chains, has reported a 1.8% increase in like-for-like sales across its dancing division for the first eight weeks of the second half of its financial year.

The company, which in December disposed of the Chicago Rock Cafe and Jumpin' Jaks bars that made up its entertainments division for £95.8m, said that like-for-like sales were up 11.8% across its branded dancing operations for the same period.

The news came as the company announced half-year results to 30 August 2007. Like-for-like sales for its dancing division were up 4.1%, while like-for-like sales in its branded dancing division were up 13.4% on the previous year.

The group reported a 55.6% rise in pre-tax profit from continuing operations to £12.6m. Turnover from continuing operations for the half year increased 3.5% to £99.3m, with sales in its dancing division up 9.7% to £90.4m.

The group said that while it was still early to draw definite conclusions from the smoking ban, it had only experienced a marginal impact on sales within its dancing

division.

However, it had seen weaknesses in its unbrandable units since the ban's implementation. It said it had yet to find a suitable smoking solution for 11 of its venues.

The company, which plans to create a 120-strong core business by 2009, said that, as anticipated, gross margins had fallen, down 70 basis points to 83.5%, due to tactical promotional investments made during July and August.

However, it said that gross margins had been restored in the first eight weeks of the second half as predicted.

Stephen Thomas, chief executive, said: "We are delighted we are progressing strongly to achieving our strategy of 120 nightclubs, 80 of which will be branded."