LMR Luminar Grp

 

TIDMLMR 
 
RNS Number : 6608Z 
Luminar Group Holdings PLC 
25 September 2009 
 

 
 
 
 
Luminar Group Holdings PLC 
 
 
Trading Update for Half Year to 27 August 2009 
 
 
Luminar Group Holdings plc will announce its interim results to 27 August 2009 
on 22 October 2009. 
 
 
The trading environment has been difficult throughout the period with high and 
rising levels of unemployment amongst our core market of young people. 
Nevertheless our strategy to deliver higher quality content in our venues has 
been successful at driving higher spend per customer, but this has been offset 
by admission numbers which have reduced in the later part of the period. 
 Trading so far in September has worsened, with weekend admissions in particular 
being below the board's expectations. 
 
 
Overall sales in the continuing business fell by 5.9% in the 26 weeks to 27 
August 2009 compared to the same period last year, in part due to the impact of 
a late August bank holiday which deferred some sales this year to the second 
half. Adjusting for the bank holiday, same outlet sales (across 87 units) for 
the 26 weeks fell by 4.5%. Within this total, admission revenue fell by 0.2% on 
footfall down by 2.9%, while drinks revenue was down by 6.6%. Gross margins 
continue to improve as average drink prices increase, but are lower than in the 
first half of last year when the retail prices of drinks were initially 
significantly higher. 
 
 
Following shareholder approval on 18 August 2009 the Group completed the issue 
of 39.5 million new shares, raising gross proceeds of GBP37.5 million, both 
strengthening our financial position and enabling us to take advantage of 
opportunities in our marketplace.  Our intention is to use these proceeds to 
invest in new capacity and we continue to actively explore profitable 
opportunities in key target locations, including the development of our site in 
Manchester which we expect to open early in 2010. 
 
 
The adverse market conditions have affected trading in 3D Entertainment Group 
Limited ("3DE"), in which we hold a 49% shareholding and an outstanding loan 
note. 3DE is classified as an investment held for sale, and we are reviewing the 
carrying value of our investment in the light of current markets.  Should the 
value reduce significantly, it may no longer be appropriate to accrue interest 
receivable on the loan note, which totalled GBP1.7m for the financial year ended 
26 February 2009.  We have also become aware that Eminence Leisure Limited, in 
which we hold a 20% equity share, is considering a creditors voluntary 
liquidation. Eminence Leisure Limited is a supplier of DJs and performing 
artists to the Luminar group and alternative arrangements are now being 
implemented.  It is customary to pay for certain costs of this nature in 
advance, however it is too early to estimate the extent to which the group may 
be exposed by this liquidation, if at all. 
 
 
As a result of the factors outlined above there is a significant risk that the 
Company will not meet market expectations for the full year ending 25 February 
2010 although the outcome for the full year will depend to a large extent on 
trading over the next quarter including the important Christmas period. Whilst 
our competitors are increasingly driving business through discounted alcohol 
prices and "all you can drink" offers, our strategy is clearly differentiated by 
providing a higher quality proposition with strong content at reasonable prices. 
We remain confident that this strategy will enable us to outperform competitors 
and maintain our market leading position. 
 
 
25 September 2009 
 
 
Enquiries 
 
 
+------------------------------------+------------------------------------+ 
| Luminar Group Holdings plc         |                                    | 
+------------------------------------+------------------------------------+ 
| Stephen Thomas, Chief Executive    | Tel: 01908 544100                  | 
+------------------------------------+------------------------------------+ 
| Robert McDonald, Finance Director  |                                    | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| College Hill                       |                                    | 
+------------------------------------+------------------------------------+ 
| Matthew Smallwood                  | Tel: 020 7457 2020                 | 
+------------------------------------+------------------------------------+ 
| Jamie Ramsay                       |                                    | 
+------------------------------------+------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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