Restructuring nightclub operator Luminar unveiled flat like-for-like sales for the half to 1 September but is uncertain about the potential impact of the looming licensing reforms.

The results were largely in line with expectations; profits before tax and exceptionals stepped up 5% to £19.9m on turnover down £4.4m at £154.4m. Full-year forecasts from broker Panmure Gordon have been downgraded slightly from pre-tax profits of £50m to £48.5m because of the new IFRS accounting.

Chief executive Stephen Thomas reassures that the company is making ‘significant progress in its transformation’ and is ‘operationally prepared to meet the challenge’ of licensing reforms. As part of the reorganization, the company is believed to be in discussions to acquire ten sites for £1 million from the The Nightclub Company, formed from the old First Leisure Corporation. It is also understood to be close to selling its Chicago Rock Cafe and Jumpin' Jaks brands, following a failed attempt to sell them earlier sale earlier this year.

Like-for-like sales in the entertainment side slumped 6% and the group’s new focus will presumably be on the ‘dancing’ segment of the business. This division increased like-for-likes 6% during the period and branded seven units with its Oceana, Lava and Ignite marks, making a total of 38. The re-branded units ‘continue to offer superior performance and returns on capital’ and foster hopes of a revival in the longer-term.

Operational cashflow has been used to trim net debt by 22% over the whole year to £140.3m and the proposed interim dividend was increased 10% to 4.44p, meaning there are reasons to be cheerful. Broker Panmure opines that Luminar may become vulnerable to a bid if the shares do not recover.