Luminar this morning reported flat like-for-like sales at the core business for the half-year to 1 September, in line with the group's expectations.
Like-for-like sales for the nine weeks since 1 September were down 0.5%.
There was no news on the company's rumoured deal to buy around 13 sites from The Nightclub Company, which was formed after First Leisure went into administration in April 2004 and is now being broken up.
Stephen Thomas, the company's chief executive, said that the group would naturally be interested in the sites, but “if it happens, it happens”.
Pre-tax profit before exceptional items was up 5% on the year to £19.9m.
Turnover from continuing operations was £154.4m, down on the £158.8m reported in the same period last year. Excluding sites closed pending disposal or refurbishment, turnover from continuing operations was up £2.7m.
Thomas said: “Despite a difficult trading environment, which has continued into the second half, the company has made significant progress in its transformation. Our branded units are performing well.
“The impact of licensing reform remains unpredictable, but the company is operationally prepared to meet this challenge.
“We are cautiously optimistic about the balance of the financial year”.
Operating profit pre-exceptional items on continuing operations was £24.6m, down 5.7% from £26.1m, with operating margin maintained at 16%.
Ebitda was down £600,000 to £41.4m, with Ebitda margin up to 27%, from 26% in the corresponding period last year.
At the group's branded and unbranded dancing units like-for-like sales rose by 6%, with total sales up 3% to £91.0m.
During the period a further seven units were branded, one Oceana and six Lava and Ignite venues, bringing the total number of branded units to 38.
At the Entertainment division, like-for-like sales were down 6%, with total sales down over 5% to £52.4m, which Thomas attributed to poor site selection and increased competition within the student market. The company suspended plans to dispose of the division in mid-July after deciding it was unlikely to receive an 'acceptable' value for the business.
A new managing director was recruited to drive the segment forward and restore the original proposition of “dining, dancing and drinking”. Luminar said that new management team had started to make “good progress” in turning around the segment's performance.
The company cut net debt by £40m, or 22%, in the 12 months to £140.3m with net debt reduced by £25m during the first half.
