Disposals of underperforming assets and improved operating cash flow helped nightclub operator Luminar reduce debt to £140.4m during the six months to 31 August 2005.
In June it sold 49 non-core nightclubs to a management buy-in team for £27.2m, and signed a sale and leaseback deal in May raising £17m.
The company wants to sell its leisure division, which includes Chicago Rock Café and Jumpin' Jaks, but was disappointed by the low offers it received earlier this year and ring-fenced the business.
Several units were rebranded during the period and like-for-like sales for the year to date remained neutral in a "challenging" market.
Luminar's net debt in the same period last year was £173.3m. It operates nightclub brands Oceania, Liquid and Ignite.
By Chris Druce
Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.