Shares digital

Nightclub operator Luminar (LMR) could be facing a £3 million liability from regaining up to 15 leasehold properties originally offloaded within the management buyout of former subsidiary, Candu Entertainment, which has subsequently gone bust.

The property costs of 35 units were £4.9 million a year. Around 20 are to be licensed to investment firm Agilo, but Luminar didn’t formally sell the units to Candu in 2005. ‘The news that they may be coming back cannot be taken as good,’ said stockbroker Blue Oar.

A second company, Summit, took ownership of five units, but it too has gone into administration, adding to Luminar’s liabilities.

The late-night entertainment market is facing significant pressures, driven by the smoking ban and consumer spending slowdown. ‘Sports Café, Candu, Summit and others have called in the administrators, and the share prices of listed operators such as Regent Inns remain depressed,’ notes Blue Oar, warning that Luminar faces downward earnings revisions.

Shares says: Luminar’s shares have fallen by 65% in the past year. Having to cope with extra properties will further depress its market, and financial position.

by: Dan Coatsworth