LMR Luminar Grp

    RNS Number : 1497Z
  Luminar Group Holdings PLC
  16 July 2008
   

    Luminar Group Holdings plc

    Interim Management Statement and AGM statement

    Luminar Group Holdings plc, which holds its AGM today at 1pm, announces its Interim Management Statement in respect of the period from
29 February 2008 to 16 July 2008. 

    Trading
    As set out in the preliminary results which were issued on 15 May 2008, important steps have been achieved to transform Luminar into the
highest quality late night destination estate in the UK. The business operates from commanding town locations and is supported by
substantial freehold backing.

    The cumulative like-for-like sales for the current financial year and the comparative period are shown below:

                                FY09        FY08
                               total       total
 Like-for-like sales         Weeks 1-19  Weeks 1-19

 Total dancing (73 units)      (2.4%)       9.8%

 Branded dancing (48 units)     1.9%       14.4%

    Whilst during the start of the financial year trading was solid, the second quarter is trading against tough comparatives and the
disruptive effect of carrying out over 12 rolling refits reducing our capacity in those clubs substantially for the period of these refits.
(Underlying like-for-like sales without the impact of the units undergoing refits are +0.2% for total dancing and +2.8% for branded
dancing.) 

    Gross margins have remained stable and continued to improve during the period, with a year to date gross margin for total operations of
83.4%. 

    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.

    Luminar offers an unmatchable customer experience and entertainment throughout its venues, which differentiates it from other town
centre offerings. The Company is better positioned for this economic climate than previously. 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.

    Development
    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 (see Appendix 1).

    Capital structure
    Luminar remains financially strong and asset backed (freehold value of �2.95 per share). The Group's operations are highly cash
generative and Luminar will continue to finance its development through its existing cash flow and banking facilities. Cash net debt
currently stands at �150.7m and Luminar has total facilities of �180.0m, which will not need renegotiating until 2012. �140.0m of the
Group's debt is hedged through a combination of swaps and cap and collar arrangements. The final dividend of 13.95 pence per share will be
paid to shareholders on 25 July 2008. 

    Accounting guidance
    On 22 May 2008 the Group made a new award under the Luminar Group Holdings 2007 Performance Share Plan. No consideration was paid for
the grant of an award which is structured as a conditional award. This award, which is subject to continued employment of the participant
and the satisfaction of performance conditions over a three year period, is expected to result in a maximum ongoing annual IFRS 2 charge of
�0.5m.  

    There have been no other significant changes in the position of the Group over the period since the publication of its report and
accounts for the year ended 28 February 2008.

    Outlook
    Luminar is well positioned with excellent venues and a strong asset base that will benefit from the changing shape of the market. The
Company will emerge a stronger business as further contractions in the supply of late night entertainment venues are anticipated, as less
strong businesses fail.

    The Group is in a strong financial position with asset backing and adequate facilities that will not require further negotiation during
these uncertain times.

    As ever the outcome for the year as a whole is dependent on the important fourth quarter, but we are managing our business to match
market conditions.

    16 July 2008
    Enquiries 

 Luminar Group Holdings plc
 Stephen Thomas, Chief Executive      Tel:    0207 399 2960 (today)
 Nick Beighton, Finance Director  Tel:    01908 544135 (thereafter)

 College Hill
 Matthew Smallwood                            Tel:    0207 457 2020




This information is provided by RNS
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