Late night bar and club operator Luminar has reported a 7 per cent decrease in its first half pre-tax profits – from £27m in 2003 to £25m this year – but remains optimistic over its future.

Reporting figures for the six months to 29 August, the company also announced a 3.7 per cent fall in like for like sales and a turnover of £188m – down from £199.9m in 2003.

Luminar blamed the decline on a difficult market but insisted its performance was in line with expectations.

Stephen Thomas, chief executive, said: “We are operating in a highly competitive marketplace but are making progress building the foundations for a business which will create sustainable and more predictable performance.”

Luminar also revealed that it has made a joint application with Accor Casinos for regulatory approvals for an entertainment-based casino in Leeds.

A spokesperson said the plans, if approved, would fit the definition of a large regional casino, as described in the proposed changes to UK gaming laws.