Luminar boosted by older generation of clubbers

The UK’s biggest nightclub operator, Luminar, has said higher spending by an older generation of clubbers has helped it achieve a ’satisfactory’ festive trading performance.

This was in spite of fewer admissions overall as trading toughened from mid November and during early December.

Christmas and New Year trading was satisfactory with like-for-like sales in its dancing division for the 3 weeks to early January up 1%.

Luminar, which owns brands such as Jumpin Jaks, Lava & Ignite, LIFE, Liquid and Oceana, expects to hit full-year profit forecasts of between £27.5 million and £34 million.

The nightclub operator added that a fuller picture of the impact of the smoking ban, imposed July 1, on its clubs was now beginning to surface. It said clubs with ’smoking solutions’ such as outdoor terraces, now comprised 70% of its estate and these were performing better than those without.

Furthermore, Luminar has introduced ‘out scented units’ across its venues to fight the sweaty odours of clubbers and said it was focusing attention on the few remaining sites without outside areas.

Richard Carter, analyst at Numis Securities, predicted annual profits will come in at the lower end of forecasts at £27.5 million. Numis believes that the key weakness is admissions, which is being mitigated partly from higher spend per head by older, more affluent customers.

Mr Carter concluded that Luminar will struggle to grow profits in the dancing division next year.

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