Luminar slumps as clubbers stay away

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Date: Wednesday 16 Jul 2008

LONDON (ShareCast) - Troubled nightclub owner Luminar has blamed disruption from a series of refits, the weak economy, the Euro 2008 football tournament and even the weather for a sharp fall in sales.

Its shares staggered lower again Wednesday on news that like for like sales in the 19 weeks to 16 July fell 2.4% at its 73 nightclubs, while growth at its branded outlets dropped to 1.9% from over 14% a year ago.

The owner of the Liquid and Oceana chains warned that this financial year is set to be one of the most difficult in recent times for clubbers as rising fuel costs eat into disposable incomes.

Earlier this year, the firm paid Cavendish Bars £800,000 in cash to take 26 nightclubs off its hands, indicating just how badly the smoking ban is harming business.

But it thinks “less strong” rivals will fall by the wayside as the slowdown begins to bite, while Luminar remains “well positioned with excellent venues and a strong asset base that will benefit from the changing shape of the market.”

“The group is in a strong financial position with asset backing and adequate facilities that will not require further negotiation during these uncertain times,” it said.

“As ever the outcome for the year as a whole is dependent on the important fourth quarter, but we are managing our business to match market conditions.”

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