Night club operator Nexum has reported a 1.3 per cent drop in its first half like-for-like sales.

Reporting the company's figures for the six-month period to September 2009 Nexum's chief executive, Paul Kinsey, said the results were encouraging in a tough climate.

"Gross margin was only slightly down against the previous year," he said. "This was a very pleasing result in a market where heavy discounting is now routine.

"The margin has been maintained by the fact that we have only adopted selective targeted discounts. "

Kinsey also revealed that it was reviewing the future of some of its struggling venues.

He added: "We have a couple of underperforming sites where we are actively engaged with landlords to agree a mutually beneficial long-term solution."

Image: chief executive Paul Kinsey