Luminar issues profit warning
Shares in Luminar Group were trading more than 11 per cent down today at 42.25p after the nightclub operator issued a profits warning and admitted sales were being hit by bad weather and poor economic conditions.
The group highlighted poor weather, the ongoing economic downturn and rising youth unemployment being behind a near 14 per cent dip in turnover last month, in a trading update issued today.
Luminar said same-outlets sales in December were 13.8 per cent lower than the same month in 2008, slightly worse than September 2009, which saw turnover 13.4 per cent down on the previous year.
"In view of the prolonged weather impact and the continued sales trend the group now expects profit before tax for the year to February 25, 2010, to be below market expectations [£6.9m]," it added. Stockbroker Panmure Gordon said it was revising its estimate for the group's annual pre-tax profits down by more than a third to £4m.
The group said it was "very much encouraged" by good trading over Christmas Eve and New Year's Eve, and by average sales per customer coming in 1.5 per cent higher in December than in 2008.
Investment in the group's estate would be around £5m for the year, down from £38.3m in the last financial year.
Luminar said its net borrowings of around £96m at the end of December "continue to reduce" and it had a banking facility of £175m.
It said it was continuing to trade within its banking covenants and was still on the look-out for a buyer for its investment in 3D Entertainment Group.
