Snow hits Luminar profit levels

NIGHTCLUB operator Luminar said today that trading during the first two months of the year had been badly affected by the poor weather.

The group, which also operates the Oceana club chain plus Birmingham’s Jam House venue, said in a pre-close update for the year ended February 2010 that despite the harsh winter and poor custom it still expected profits to be in line with expectations.

“Trading during the last two months of the year continued to be severely affected by persistent poor weather across most of the UK,” it said in its statement.

“For the financial year as a whole, same outlet sales were 9.9% below the previous year as a direct result of a reduction in customer numbers.  Sales per customer and gross margins have remained at similar levels to the previous year.”
 
The group said it continued to trade within its debt covenants, and continued to generate cash to reduce borrowings.  Net borrowings at the year-end were approximately £93m, a reduction of £49m in the year.  
 
“A rigorous cost reduction exercise has now commenced across the business and is expected to lower operating costs significantly in the next financial year, whilst ensuring focus on key trading priorities,” added the statement.  
 
It said the appointment of Simon Douglas as chief executive would help to bring focus to its strategy of improving its customer offering.

“We remain confident that this strategy will enable us to outperform competitors and maintain our market leading position,” added the statement.  
 
The group expects to announce full results on May 13.