15 July 2008 Second Quarter Has Been Tough, Say Luminar

15 July 2008

Second Quarter Has been Tough, Say Luminar

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Venue refurbishment, unpredictable weather and the lack of a national team in the Euro 2008 competition have contributed to a decline in footfall over the last nine weeks, claim Luminar Leisure. Whilst the company reported strong sales in the first quarter of the current financial year, the trading environment coupled with a slowing economy has proved especially difficult in the period to 16 July 2008.

In a statement Luminar said:

“A deteriorating macro-economic climate, markedly different weather patterns from last year and Euro 2008 football all contributed to a sharp decline in footfall during the last nine weeks, which impacted sales albeit with spend per head improving. This current financial year is set to be one of the most difficult in recent times for our consumers, as amongst other things the unprecedented hike in fuel costs is affecting their disposable income.”

However, the company have also outlined a series of ongoing strategies to offset the impact of prevailing market conditions:

“In order to mitigate some of the impacts of factors outside our control, we have already implemented changes to our trading position and ways to drive footfall, and have reviewed our cost base and aim to make savings accordingly.”

“It remains the aim to dispose of our investment in The 3D Entertainment Group Limited, which is held for sale, at the appropriate price and value for shareholders. A number of alternatives are being actively pursued.

"The Group’s 2008/09 development programme is progressing well with three new branded openings and ten refurbishments since the year end and the Group is on track to complete a further four rebrands and three refurbishments before the end of September.

"Since the year end, the Group has acquired one unit in Manchester for £0.5m proceeds as a reverse premium from the landlord, and disposed of 22 units, which includes the completion of 21 units sold to Cavendish Bars Limited. This brings the portfolio to 97 units excluding units in development and sub-let units.”

From: Night Online

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