Luminar sales fall 4.7%

Luminar, the country's biggest nightclub operator, this morning announced that its like-for-like sales for the year to 26 February 2009 had fallen by 4.7%.

In a pre-close statement the company, which is led by founder and chief executive Stephen Thomas, said that trading patterns in January had been in line with the sector - but had improved as February progressed.

The group also revealed that FY lie-for-likes at its branded outlets, the group's better-invested sites that included 53 units, had also dropped by 3.2%.

The tactical strategy of increasing promotional and pricing activity to support turnover levels and to drive turnover had meant that the company's total gross margins were 82.3% in the period, compared with 83.6% for the year before.

As a result, Luminar said that it expected its full year results to be at the lower end of its previously given range of estimates.

The company said: "Whilst sales in recent weeks have seen an improved trend, trading conditions remain challenging and Luminar will continue its strategy of promotional activities, which provide value for money for our customers.

"The group will also continue to progress actions to control cost. The ongoing economic downturn has led to a continued contraction in the supply of late night entertainment venues, leaving Luminar with its high quality, market leading portfolio, well positioned to further strengthen its competitive standing."

Total dancing sales for the year were down 1.9% and total sales at its branded venues were up by 0.9%.

Luminar said that its net debt at the end of the year was approximately £141m. It added that its group banking facilities of £180m, including a £5m overdraft, did not need to be renegotiated until 2012.

The company will announce its full year preliminary results on 14 May.