Luminar sales remain under pressure

Luminar reported a 19 per cent drop in footfall at its venues but said the performance in the 26 weeks to August 26 was in line with expectations as it continued to grapple with challenging trading conditions.

In a trading update, it also allayed fears over its future by revealing it continued to trade in line with the terms of its banking facilities.

It met the latest test of its banking covenants in August following the 3.7m sale of four properties. The company remains in talks with lenders over a refinancing of its debt, which stood at 92.6m in February.

Luminar has been hammered by youth unemployment in the recession, while the distraction of the World Cup added to trading pressures over the summer.

Like-for-like sales across 76 clubs were down 20.2 per cent in the half-year period, with admission revenues 26.5 per cent lower and footfall down by 19.1 per cent. Drinks spend per head was slightly ahead of a year earlier at 8.39, it added.

The company is hoping a turnaround strategy under new chief executive Simon Douglas will lead to an improvement in fortunes.

As well as a group-wide crackdown on costs, he wants to improve the music, drinks and customer service standards on offer at Luminar's clubs, making them more "fashionable and relevant" for customers.

The former HMV and Zavvi boss is also looking for an enhanced online presence, as well as tie-ins with other areas of the youth market.