Luminar reports 19.4% sales drop

Nightclub company Luminar has reported a loss of £123.1m for the year to 25 February with trade worsening in its current year — like-for-like sales are down by 19.4% compared to the prior year in the first 10 weeks.

The company made a profit before tax of £4.4m compared to £20.3m the year before, but exceptional costs totalling £127m saw it plunge into the red.

Sales were 9.9% below last year on a same outlet basis across 85 clubs, but the company saw a 15.4% decline in its second half of the year resulting from lower customer admissions.

The company has embarked on a "significant cost reduction programme" that saw a £6m drop in operating costs. Capital investment has reduced to £4.2m from £38.1m the year before.

The company has embarked on a reappraisal of strategy and focus on key actions. Four clubs have been sold or closed and £10m of further cost savings are planned for the current year.

Simon Douglas, chief executive, said: "Luminar has a very good estate and dedicated people. Whilst our marketplace remains challenging, we believe there is a substantial opportunity to leverage Luminar's many strengths.

"By focusing on the operational basics and embracing more modern marketing methods, we will engage and entertain our customers and ensure our offer remains relevant. We are confident that this more focused strategy, well executed, will restore value to our shareholders over time."

Meanwhile, Robert McDonald has decided to stand down as finance director — he will be replaced by Philip Bowcock, who joins Luminar from Barratt Developments where from August 2007 he has been Group Financial Controller.