LMR Luminar Grp

RNS Number:5289S
Luminar Group Holdings PLC
17 April 2008

Luminar Group Holdings plc

Disposal


Luminar Group Holdings plc ("Luminar") has agreed to sell 26 units to Cavendish
Bars Limited ("Cavendish Bars"), completing the streamlining of the group to 90
core units (together with an additional 18 units awaiting development).



Cavendish Bars will purchase five individual companies (the "Disposal Companies
") for a consideration of �1 each on a going concern basis.  The Disposal
Companies are responsible for all of the leases of the units being sold and are
contingently liable as guarantors for a number of other non-core units,
including all of the leases relating to units that were sold by Luminar to Candu
Entertainment Group Limited in June 2005. Completion of the sale of two of the
Disposal Companies (which own 10 of the 26 units) is conditional upon Luminar
receiving landlord consent to the transfer of certain units, that do not form
part of the disposal, out of the Disposal Companies.



The businesses to be disposed of within the Disposal Companies generated a
pre-exceptional loss before tax of �1.5 million* for the year ended 28 February
2008 (2007: loss before tax of �1.8 million*). These companies had gross assets
of �4.0 million* as at 28 February 2008 relating to working capital contributed
to, and to be left in, the companies as part of the transaction. In addition,
Luminar will make a cash payment of �0.8 million to the purchaser as a reverse
premium and will fund property costs between signing and completion. As well as
customary indemnities for a transaction of this size and type, Luminar will
enter into indemnities capped at �4.2 million in favour of Cavendish Bars in
relation to liabilities relating to the guarantees outlined above and certain
other matters.



The transaction creates a net loss on disposal under IFRS of �9.9 million
comprising:


Cash cost                                            � 4.8  million
Write down of assets and goodwill                    � 7.9  million
Estimated transaction costs                          � 1.3  million
Less provision released                              � (4.1) million
Total Loss                                           � 9.9  million



The transaction will be earnings and cash flow accretive**.



Luminar will announce its preliminary results for the year ended 28 February
2008 on 15 May 2008.



Stephen Thomas, Chief Executive said: -



"The disposal completes the strategy of streamlining the group's activities. It
releases the group from liability for those units going forward and from the
cost of having them on our books.



"With a clear strategy we have built a strong business that is positioned well
in its market place and will continue to generate significant sums of cash. We
remain focussed on further developing a business that delivers excellent returns
for shareholders."



17 April 2008



Enquiries


Luminar Group Holdings plc
Stephen Thomas, Chief Executive                                    01908 544120
Nick Beighton, Finance Director                                    01908 544135

College Hill
Justine Warren                                                     020 7457 2020
Matthew Smallwood



* figures extracted from Luminar's management accounts


** before exceptional items. No statement in this announcement is intended to
constitute a profit forecast for the current financial year or for any other
period. In addition, no statement in this announcement should be interpreted to
mean that earnings per share will necessarily be greater than those for the
relevant preceding period.



Appendix: Unit reconciliation



The table below reconciles the units reported as at 30 August 2007 to those to
be reported as at 28 February 2008:


              30 August 2007                            28 February 2008
Segments       Total units * Transfers * Disposals ***       Total units Transaction ***        Total units
                                       *               pre-transaction *               *   post-transaction

Branded                   47           5             -                52             (1)                 51
Unbranded                 41        (13)             -                28             (1)                 27
Dancing                   88         (8)             -                80             (2)                 78

Non-core                  24         (2)           (2)                20             (8)                 12

Total                    112        (10)           (2)               100            (10)                 90



* The units presented above represent the total of continuing and discontinued
operations, but excludes units in development (22 at 28 February 2008) and
sub-let units (12 at 28 February 2008).  Of the total 100 units (30 August 2007:
112 units), 78 (30 August 2007: 88) within dancing and 9 (30 August 2007: 12)
within non-core represent continuing operations.



** Net transfers predominately relate to unit movements associated with
developments.  7 branded openings have taken place since the half year, and 2
branded units have been closed for development.  A further 13 unbranded units
(of which 2 have been subsequently transferred into branded) and 1 non-core unit
have been closed for development.  One non-core unit has been combined with a
branded unit.



*** Disposals include 1 lease expiry, but exclude 1 unit in development.



**** Units disposed of as part of the transaction exclude 16 units which were
closed for potential development and sub-let units.  Post transaction, this
leaves 18 units for development.




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