3D unveils losses of £12m

Latest accounts from 3D Entertainment, the nightclub business spun out of Luminar, reveal losses in its most recent year of £12.1m.

The losses stem from impairment charges against the value of assets amounting to almost £15m. 3D announced yestreday it is to dispose of 28 sites to Helena Leisure for a nominal value.

The group, which operates the Chicago Rock Cafe and Jumpin Jaks brands, delivered Ebitda of £9.7m on sales of £100.9m in the 58 weeks to 28 February 2008.

At a pre-tax level, before the exceptional non-cash items, profits were £4.1m. The accounts, which were filed earlier this month, represent 3D's first full year as a separate company. At the time of the deal in January 2007, the carrying value of the assets being bought by 3D was £82.1m.

According to the accounts the group's banking facilities of £10m with Bank of Scotland, part of HBOS, comprises an £8m loan plus a £2m overdraft. The group also has £19.3m of loan notes issued by Luminar, which funded the purchase of the business. The group said its banking facilities were due for renewal on 31 March 2009.

While it said that the financial statements had been prepared on a going-concern basis, there was some material uncertainty until a new facility was agreed.

It said: "The group utilises the facility to finance working capital requirements, and therefore until the facility is renewed this indicates the existence of a material uncertainty, which may cast significant doubt about the company's and group's ability to continue as a going concern."

It added: "The directors believe that adequate financial support from Bank of Scotland will continue for the foreseeable future and that the group will comply with the covenants under the banking facilities. Accordingly, the directors believe it is appropriate to prepare these financial statements on a going-concern basis."

Luminar, which retained a 49% stake in the business, received £55,769 for the services of Stephen Thomas, its chief executive, who also serves as chairman of 3D, while the highest paid director — thought to be chief executive David Crabtree — received a total package, including pension payments, of £177,000.