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Date: Thursday 17 Jul 2008

LONDON (ShareCast) - Troubled nightclub owner Luminar blamed disruption from a series of refits, the weak economy, 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 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.”

Sales have continued to slow at struggling photographic retailer Jessops, prompting a warning that annual losses will top the £7.5m reported last year.

It said trading has not improved since its last trading update at the end of May when the group posted a 5% drop in first half like for like sales and a 5.6% slide for the 34 week period.

Like for like sales for the 41 weeks ended 13 July are now down 5.7%, with the last three weeks trending at an average of 11% down.

Bosses think full year earnings before interest, depreciation and amortization (EBITDA), although lower than originally anticipated, will beat last year’s £4.4m.

But the loss before tax, non-recurring items and financing fees will now be “significantly” worse than the small loss announced in May, with the increased costs of interest and depreciation growing the deficit to over last year’s £7.5m.

There was a small piece of cheer for shareholders as the company said it remains cash generative and is operating within its existing banking facilities.

Chocolate maker Thorntons saw fourth quarter sales rise 16.8% and said full year results are expected to be on line with expectations.

The group said total company sales continued the positive trend in the fourth quarter, achieving overall growth of 16.8% to £28.6m. Full year sales of £208.1m were 11.9% higher than last year.

Like for like sales in the fourth quarter increased by 3.6% against a strong comparative last year of 7.2% growth.

Franchise sales rose 6% to £1.7m in the period and 14.5% for the full year at £14.9m.

Commercial sales grew 47% to £7m in the quarter and by 33.8% in the full year, while sales in Thorntons Direct were up by 44.3% to £1.2m in the quarter, resulting in full year growth of 26.6%.

“We expect input costs to remain high, but have mitigated the likely impact on the business in the current financial

Flooring and fabric specialist Low & Bonar boosted interim profit by 62% thanks mainly to recent acquisitions.

Profit before tax, amortisation and non-recurring items for the six months ended 31 May jumped to £12m from £7.4m the year before on revenue up 50% to £213.4m.

Without exchange rate moves and first time contributions from MTX, the technical coated fabrics firm bought for £122m in January, and Westbond, the fusion-bonded carpet tiles business snapped up for an initial £6m, revenues rose 4.2% and operating profit before amortisation and non-recurring items by 17%.

The exchange rate on Low’s euro denominated borrowings accounted for another £20m.

“We are confident that these factors will continue to maintain the group's progress during the second half and beyond,” said chairman Duncan Clegg.

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