Luminar divi on line after profit warning

The party is over at Britain's biggest nightclubs operator Luminar as it today issued a profits warning and said it expects to scrap its dividend.

Like-for-like sales fell 5.1% at its venues in the five weeks leading up to the new year, and profits for the 12 months to 26 February are now expected to be below management's previous guidance.

The company also said a shareholder pay-out looks unlikely and that it has scaled back it planned capital expenditure for the coming year from £35 million to £15 million. Luminar does not plan to open any new venues this year. The cost-cutting measures are intended to save over £30 million.

Luminar described trading over Christmas as "mixed", saying that while punters are still going out they cut back on spending once in the clubs.

Admission rose 3.2% over the festive season as more clubgoers went online to book in advance.