Luminar tackles 'difficult conditions'

NIGHTCLUBS group Luminar, the owner of Chicago Rock Cafes and Liquid nightclubs, today said sales were improving during the summer, although conditions remain tough.

Like-for-like sales, down 4.1% year-on-year in July, were off 2.2% in August. But analysts said the weak situation a year ago flattered the comparisons.

The company has been battling a slowdown in consumer spending growth and a glut of late-night entertainment venues

Chief executive Stephen Thomas announced that profit margins were holding up as the company cut its overheads.

'The corner has still yet to be turned, but it does feel as if we are getting closer to it,' said Altium Securities analyst Greg Feehely, who has a 'hold' rating on Luminar stock.

The shares surged 23p - more than 5% - to 432p by mid-morning as investors welcomed the results. The price is less than the half the peak of 920p in 2002.

Broker Panmure repeated its 'hold' rating, but noted disappointment the August sales were not better.

The company reports first-half results on 11 November.

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