LMR Luminar Grp

RNS Number:0426M
Luminar Group Holdings PLC
18 January 2008

Luminar Group Holdings plc



Interim Management Statement



Luminar Group Holdings plc ("Luminar" or the "Group") announces its Interim
Management Statement for the period from 31 August 2007 to 18 January 2008.



Trading

The Group's strategy of strengthening its leading position in the late night
market is unchanged and on track, with the focus on the execution of the
operational and financial effectiveness programmes continuing to drive returns
and profitability.  At this stage of the Group's financial year ending 28
February 2008, the Board is confident that the profit before tax for the full
year should be within the current market forecast range.



As previously reported, trading in the second half of the financial year
commenced in line with the Board's expectations.  The trading environment
toughened from mid November and continued throughout the first half of December
with the Group's units seeing a continuation of the previously reported trends
with reduced customer admissions, but stronger spend per head generated from an
older customer base with higher disposable incomes.  The impact of this on
operating profit was partly mitigated by the existing operational and financial
effectiveness actions focused around gross margin and cost control.  As a
result, gross margins have improved during the second half of the year averaging
84.0%, up from 82.7% for the comparative period last year.



Notwithstanding the trends experienced from November to mid December, trading
over Christmas and New Year was satisfactory, with continuing like-for-like
sales within the Dancing Division for the three weeks to 3 January 2008 up 1.0%,
and branded dancing continuing like-for-like sales up 4.3%.



Continuing like-for-like sales within the Dancing Division (86 units) for the
financial year to 10 January 2008 were up 1.1%, with branded dancing (53 units)
continuing like-for-like sales up 5.7%.  A similar trend has continued into the
current week ended 17 January 2008.



Trading patterns experienced within our associate (The 3D Entertainment Group
Limited) have been broadly in line with that of the Group as a whole.  Recently
invested units continue to show good profit uplifts.  As a result, the Board
expects the performance of the associate for the full year to be in line with
previous guidance.



A fuller picture is now starting to emerge of the impact on the estate of the
smoking ban, introduced on 1 July 2007, with units with a good smoking solution
(over 70% of the estate) outperforming those without such a solution.
Management are continuing to focus attention on the few remaining units without
the required outside areas.



Development

The Group's 2007/08 development programme was completed before Christmas with
five new branded openings and five refurbishments since 30 August 2007.  This
brings the total for the year to eight branded openings and fifteen
refurbishments.  No further openings are anticipated in the current financial
year.



Capital structure

The share buy-back programme has continued with 940,000 shares being purchased
for �5.5m in aggregate since 30 August 2007, bringing the total amount returned
to shareholders via this programme to �41.8m. An additional �40.8m was returned
to shareholders via the Scheme of Arrangement which became effective on 19
October 2007. Therefore a total of �82.6m has now been returned to shareholders.
It is anticipated that surplus cash will continue to be used to buy back shares,
subject to Luminar's capital structure parameters previously set out.



As previously announced, in August 2007 the Group renegotiated its �180.0m bank
facilities committed for 5 years. Currently �145.0m has been drawn down leaving
significant headroom and adequate funding.



With the uncertainty surrounding the debt markets, the Board has updated its
financial risk strategy in order to deliver greater certainty of interest
related cash flows.  As a result, the Group has hedged �140.0m of its debt using
fixed rate and cap and collar instruments, delivering a competitive cost of
borrowing going forward.



Accounting guidance

As a result of Luminar's restructuring via the Scheme of Arrangement, a non-cash
exceptional IFRS charge to the income statement of �0.7m crystallises in the
current financial year (2009: �0.1m).



The new share option scheme, which was approved at the EGM on 28 September 2007,
will result in an expected ongoing annual IFRS 2 charge of �0.5m (2008: �0.2m).



There have been no other significant changes in the position of the Group over
the period since the publication of the interim results for the half year ended
30 August 2007.



Outlook

The Board is mindful of the recent trends in the sector.  Given the significant
competitive advantage created by Luminar's venues and strong asset backing, the
Board is confident in the Group's strategy.  By strictly adhering to the
operational and financial effectiveness measures around cost control and capital
spend, Luminar will continue to deliver shareholder value through these more
difficult trading conditions.



                                                                 18 January 2008

Enquiries


Luminar Group Holdings plc
Stephen Thomas, Chief Executive             Tel:     01908 544120 (today)
Nick Beighton, Finance Director             Tel:     01908 544135 (thereafter)

College Hill
Matthew Smallwood                           Tel:     020 7457 2020




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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