Luminar sees 'slight' improvement in tough market

Luminar Group has sounded a cautiously optimistic note about trading conditions in the cut-throat town centre market.

Updating shareholders at its annual meeting today, the late night operator said business had improved slightly since its last trading statement in February, and is running fewer deep discount promotions on alcohol.

Same outlet year-on-year sales across 87 units fell by 3.3 per cent in the 18 weeks of the year to July, and improvng trend compared to a 3.8 per cent decline in the nine weeks to April 30.

Revenue from admissions charges increased by 0.7 per cent on footfall up 1.2 per cent, but drinks revenue fell by 5.4 per cent, mainly due to lower selling prices compared to the previous year.

Luminar said retail prices for drinks have now stabilised and are on a rising trend, with marketing focusing on the offer at venues as reasons to visit rather than price promotions.

The company said it is "actively managing" operating costs and capital expenditure in particular, with investment focused "on maintaining the high quality of the venues".

With two outlets in Maidstone operationally merged, estate numbers have dipped from 89 to 88 since the end of the last financial year.

Luminar added: "Trading conditions in the late night sector are very competitive and we expect market conditions to remain difficult in the short term.

"However, the group is confident that, given the strength of the estate, together with operational and marketing expertise and a well trained workforce, it will continue to outperform competitors and maintain its market leading position."