Luminar nears end of an era with Thomas departure

It is clear that a succession programme has been underway for some time at Luminar with chief executive Steve Thomas set to announce his departure, says Mark Stretton.

It is thought that the situation could become clearer as soon as this week when a successor to Steve Thomas, the group's founder and chief executive, is expected to emerge.

It is thought that Luminar has its man, it is only the minor detail that remains.

A possible changing of the guard was signalled by Thomas in an interview with Dominic Walsh of The Times​ earlier last month, and a diary story in the Telegraph last week added to the speculation.

In that Times​ interview he said: "Am I evaluating myself? Yes I am. Is it me? Do I have to do something about myself? Am I the wrong person? All those questions have to be asked. If you're honest and care about your shareholders and the people you work with, the last thing you want is to be the wrong person.

"You work very hard to get the right people of the right age around you. But the question is, am I now at an age where I actually shouldn't be running a nightclub company?"

Long term view​

For a long time Thomas has been the right person — the only person. But given the challenges that face Luminar and the nightclub market, the role of chief executive at this business is one that probably requires a three-to-five year view — with a lot of perspiration and not much sleep.

Considering all that Thomas has achieved in the sector and the fact that at 57, he has probably started to contemplate a time when he isn't in nightclubs at three o'clock in the morning, it is right that he is ready to pass on the reins. Given the rewards that have accompanied building Britain's biggest nightclub company, he certainly does not need the money.

His decision to call time on his 22-year tenure is a move that shareholders are apparently ready to accept although he and they would have preferred the timing to be better.

After searching for some time for a chief operating officer without success, he appears to have decided now is the time for him to make way. Given Thomas's love for the sector I would expect to see him remain involved in some way, possibly by taking a clutch of non-executive chairs.

Successor​

The identity of his successor is not yet known and the biggest question for most analysts - as speculation that Thomas was ready to step down gathered pace - was who else is there that could run this company?

Many expect someone from the sector, or at least with extensive experience of the sector, to be unveiled as successor. M&C believes that Whitehead Mann, the headhunter that specialises in finding senior executives, may have been assisting Luminar with its search.

This is clearly a tough and challenging role, and Thomas's replacement has a huge pair of boots to fill.

And although much restructuring work has been undertaken at Luminar, the current caustic trading environment would seem to precipitate a whole lot more. On this tack, there is talk of the group engaging one of the big professional services firms, with PwC mentioned in dispatches.

The most obvious candidate is Steve Richards, the highly regarded chief executive of Novus Leisure, but it would seem that he is locked in to his current role for some time yet.

Another name is Carl Leaver, the former Whitbread executive, who has worked with Luminar chairman Alan Jackson at De Vere, although Leaver is said to be holding out for the top job at Whitbread when Alan Parker retires.

Intriguingly, the word on the industry's jungle drums is that a successor has been identified — from outside the sector — but we know no more than that.

It must be assumed that it is someone with experience of consumer businesses, not to mention organisational restructuring work. I guess all will become clear soon enough.