Trading ‘challenging’ at entertainments group
LEISURE and entertainments company Luminar Group Holdings has seen revenue fall by 26% and footfall drop 19.6% as trading remains “challenging”.
In an interim management statement for the 19-week period from February 26, 2010, the company said however that trading had been in line with its board’s expectations.
Luminar runs a host of venues across the region including live music pub The Jam House, in Birmingham’s Jewellery Quarter, and nightclub chains such as Liquid/Diva, Envy and Oceana with sites in Hanley, Wolverhampton and Tamworth.
However, its Liquid/Diva nightclubs in Shrewsbury have been closed since October after a man was killed by two bouncers working at the nightclub in June last year, with only sporadic weekend opening in the interim period.
The statement said: “Same outlet sales across 76 clubs for the 19 weeks to July 8, 2010, were down 19.9%.
“Within this, admissions revenue was down 26% on footfall 19.6% lower. Drinks spend per head has been relatively stable and is 2.2% up for the period.
“As expected and in line with our experience of previous tournaments, the World Cup has adversely affected trading, with sales down approximately an additional 6% on the run rate.
“Gross margins for the period have been maintained broadly in line with last year at 81.8 %.”
The statement said the group expected to achieve the previously disclosed £10m of cost savings in the 2010/11 financial year.
Capital expenditure remained focused on spending which would “enhance the customer experience”, it added.
Luminar said that the group continued to be cash generative and expected net debt to be further reduced at the half year as it progressed “constructive on-going dialogue” with its bankers.
