Bingo in free fall

Rank scraps final dividend
Wed 12 Dec 2007

Name Price %
Rank Group 99.75p -7.21%
LONDON (SHARECAST) - Rank has scrapped its final dividend, saying the effects of the smoking ban, recent restrictive changes to gaming regulations and a weakening in consumer confidence have resulted in an uncertain outlook for 2008.

“The short-term trading outlook for Rank remains challenging,” said the group.

“Consequently, the board has taken a number of actions which it considers appropriate in view of these challenging circumstances, including the decision not to pay a final dividend for 2007,” it added.

Rank said it intends to resume dividend payments once trading conditions and the market outlook have improved.

Like-for-like revenue increased by 1% for the 49 weeks to 9 December on total revenue down 2%. Operating profit for the year is expected to be 'broadly in line' with expectations.

The group said trading figures reflect a stabilisation in revenue from Mecca Bingo and Grosvenor Casinos since the time of its last market update in October.

Mecca Bingo like-for-like revenue fell 4%, with admissions down 7% and spend per head up 3%, but in the 14 weeks from 1 September, like-for-like revenue declined by 18% with admissions down 15% and spend per head 3% lower.

Rank was recently boosted by Malaysian casino-owner Genting's acquisition of a 9.38% stake and the accumulation, through contracts for difference, of a 9.3% stake by West Midlands property developer Richardsons Capital.
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