Companies: LMR   

Nightclub operator Luminar's interim results to August showed both turnover and pre-tax profits down 6.3% to £188m and 11% to £18.5m respectively, with like-for-like sales off 3.7% overall. Even so, chief executive Stephen Thomas commented that Luminar's performance was ahead or in line with the market as a whole. Entertainment brands Chicago Rock Cafe and Jumpin Jaks saw like-for-like sales decline by 2.1% but the seven units the company refurbished or rebranded have since seen an average sales uplift of 28%. It was a similar story at the dancing brands division, including Liquid, Life, Lava Ignite and Oceana, where like-for-likes were down 4.6% but six rebranded sites enjoyed a 37% increase in sales. Luminar also possesses an extensive unbranded division of 169 sites, some of which will be branded in future. The business generated £15.4m cash in the first half, and disposing of two units meant that net debt was further reduced by £15.4m to £173.3m. Through its joint venture with Accor Casinos, Luminar is looking to develop entertainment-based casinos that will be categorised as 'large' casinos under the Gaming Bill, allowing bigger jackpot payouts. Like-for-like sales for the nine weeks to end-October were down 2%. Analysts forecast that profits for the year will reach £58.3m. Despite the poor trading in recent times, the shares are at 492.25p, up 62% since our recommendation in March 2003. Take some profit.