Luminar, the nightclub operator, announced it may dispose of its entertainment division. While the company believes it can continue to grow its nightclub division, which includes brands Oceana, Lava, Ignite, Liquid and life as well as 90 unbranded sites that can be converted or have strategic value (such as licensing), the under performance of its entertainment division has been well documented. Both the Chicago Rock Cafe and Jumpin Jacks brand suffered under tough trading conditions, so the company is mulling over approaches for the outfit and will continue to dispose of non-core sites. For the year to February, overall turnover was down from £389.5m to £372.6m and pre-tax losses widened from £11.3m to £13.7m. Net debt was reduced from £189m to £158m, aided by the disposal of 15 non-core units for £11m. Chief executive Stephen Thomas admitted that market conditions remain poor, although like-for-like sales for the first ten weeks of the current financial year are no longer in decline. Nick Beighton, previously with Matalan, has been appointed finance director. Broker Shore Capital forecast pre-tax and pre-goodwill amortisation and exceptional write-off profits falling from £54m to £51.3m next year and warns any disposal announcement is not likely before July. In spite of a prospective p/e of 10, this stock is best avoided.

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