World Cup hurts Luminar sales

Luminar, the embattled nightclub operator, this morning revealed the full impact of the World Cup on its sales.

In an interim management statement released to coincide with an AGM later today, it said same outlet sales across 76 clubs in the 19 weeks to 8 July had slumped by 19.9%.

And, it added, that "as expected" the tournament in South Africa had "adversely affected trading" with sales down by an additional 6% on their current run rate.

The group, which said it was still in discussions with its banks, also revealed that admissions revenue was down 26%, on footfall that had declined 19.6%.

Drinks spend per head was stable - and was up by 2.2% in the 19 week period. Gross margins for the period had been maintained in line with last year at 81.8 %, added Luminar, which is run by chief executive Simon Douglas.

In a statement the operator said: "The group expects to achieve the previously disclosed £10m of cost savings in the 2010/11 financial year. Capital expenditure remains focused on spending which will enhance the customer experience.

"The group continues to be cash generative and expects net debt to be further reduced at the half year."

Luminar, which this year saw the departure of its founder Stephen Thomas, is understood to be exploring what pre-emptive steps it might need to take to avoid breaching its banking covenants, which are due to be tested in August.

The group is currently also in talks with landlords over a lowering of rents. It hopes to trim 20% from its annual rent bill.

John Leach, who was appointed to the board as non-executive director in June will succeed Alan Jackson as chairman, who is not standing for re-election at the AGM later today.