Luminar loses out to World Cup

Spain may be celebrating their first ever World Cup win but Luminar Group, the UK nightclub operator, will be glad to see the back of the month-long football tournament.

As football fans stayed away from nightclubs to watch England's - and then anyone's - progress in South Africa, the group has reported like-for-like outlet revenue for 76 venues down nearly a fifth for the 19 weeks to July 8, 2010.

Admissions revenue was down 26 per cent while footfall was nearly 20 per cent lower, suggesting that door prices have been reduced.

In a statement Luminar said that as in previous years when the tournament was being held the World Cup had "adversely affected trading", with sales down an additional six per cent.

Two rays of light in an otherwise gloomy commentary on trading came in the form of drinks per head spend being 2.2 per cent up for the period, through what a source said was "keener [supply] terms and a slight change in the mix", while gross margins were maintained "broadly in line with last year" at 81.8 per cent.

Luminar said despite the torrid trading environment it continued to be cash generative, was on track to save £10m in the current financial year and was still in "constructive" talks with its banks.

The group will know at the end of next month whether or not it has breached its banking covenants. It is believed to be confident that it will generate enough EBITDA (earnings before interest, tax, depreciation and amortisation) to keep the money men happy.

Meanwhile at its AGM today Luminar confirmed John Leach, a non-executive since June, will succeed outgoing chairman Alan Jackson.

Luminar's shares were down 1p this morning, trading at 10.5p.