Hangover for Luminar as cash-strapped revellers shun nightclubs
Wednesday 13 July 2011
Young people are increasingly staying away from pricey nightclubs in the wake of the economic downturn, forcing venue operator Luminar to issue its latest profit warning.
The group, which owns the Oceana and Liquid clubs, revealed that like-for-like sales in the 18 weeks to 2 July had fallen 12 per cent. It blamed the economic woes facing 18- to 24-year-olds as well as a highly competitive marketplace for the latest in a series of profit warnings over the past two years.
With a somewhat confusing turn of phrase, the company said it had seen a "slightly lower than anticipated reduction in the decline of sales".
Luminar is attempting to battle against the slide. Seven of its venues now have Jongleurs comedy evenings, which have proved popular, with a further five in the pipeline.
It has also opened five WooWoo Bars near existing clubs, with four more on the way to boost profits. It has also been forced to target other age groups outside its core youth market.
Signs do not look good, according to Panmure Gordon's analyst James Cooke. He said the update was "worse than anticipated" and he cut earnings forecasts from £21.9m to £16.9m. "With net debt of around £80m and a tax liability of about £43m, there appears to be little equity value left for shareholders." The shares fell 1.81 per cent to 6.5p.
The group remains in talk with its bankers to restructure its debts.
- 1 Germanwings crash: Police make 'significant discovery' at home of co-pilot Andreas Lubitz
- 2 Germanwings captain Patrick Sondenheimer tried to break into locked cockpit door 'with an axe' as plane was descending
- 3 Zayn Malik already working on solo material, just days after quitting One Direction
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 #FreeTheNipple: Women in Iceland bare breasts in solidarity with trolled student
Nigel Farage brands LGBT activists 'filth' and 'scum' and accuses them of scaring away his children after they invade his local pub
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Russia threatens Denmark with nuclear weapons if it tries to join Nato defence shield
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Germanwings plane crash live: Andreas Guenter Lubitz intentionally crashed flight 9525 into the Alps in act of mass murder and suicide – latest
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...