Luminar returns to profit
The 53-strong company has reported pre-tax profit of £1.3m and EBITDA (pre non-re-occurring costs) of £7.3m in the year to 23 February; non-recurring costs of £0.8m related to the exit of properties and the closures of some businesses. Turnover was £89.9m and operating profit £4.5m.
Pre-tax profit from 5 December 2011 to 23 February 2013 was £0.4m, with EBITDA before non-recurring costs (amounting to £1.7m) of £8m and turnover of £111.4m.
During the year the group invested £2.4m refurbishing sites in York, Edinburgh, Crawley, Aberdeen and Eastbourne, and secured the lease on Casino nightclub in Guildford. A further £1.6m was spent on minor refurbishments, equipment upgrades and other improvements.
Another 17 sites have been identified for completion in the current financial year, when 60% of the estate would have received investments. The aim is to complete all investments by the end of FY2015.
Chief financial officer Russell Margerrison said: “This is an impressive set of results that demonstrates that the business is heading in the right direction. We have delivered strong financial progress, paid down our final deferred consideration payment ahead of schedule and are now in a position to continue to invest in our estate and our people to build a profitable future.
“When we acquired the business, one of our key priorities was to refurbish the estate which had been under-invested for many years and the quality of the experience fell way below what our customers expected. We now have a robust plan in place that will touch the majority of the estate by the end of our next financial year, together with a longer term view of re-investing to keep our brands and venues up to date.”
The company said trading to date in its current financial year “remains in line with expectations, with the refurbishment programme delivering returns on investment of over 50% and improving the overall customer experience”. It recently signed a new supply contract with Matthew Clark and is ”investing heavily” in developing its social media activity.
Luminar said the late night sector “continues to face a number of challenges”, with additional tuition fees for students and high unemployment impacting the 18-24 age group market. “However, the actions taken to reposition the business and the plans that the company has put in place to re-invest in its estate, leave it well positioned to make further progress this year.”
Margerrison said: “This is a really solid performance which demonstrates that there is still positive upside in the UK nightclub market for professional and well-funded operators. We have worked hard to transform the business and whilst we’ve made solid progress, there is still a lot more to do.”
