Rank Group Report H1 Losses of Over £100 Million
The Rank Group who operate brands such as Mecca Bingo and Grosvenor casinos have posted a H1 loss of £107.1 million for the six months to December 31. The company said a combination of rising energy costs, higher wages and the slow return of overseas gamblers to its premier London venues had all impacted on the business.
Its casino division suffered a 5% drop in net gaming revenues while it bingo division saw a rise of 4% but not enough to offset results.
The company thou said over the recent festive period they had hope of a return to more positive results with Grosvenor Casinos enjoying a 19% rise in revenues from December 24 to January 2 compared to the same period the year before.
Rank now expects to report full year earnings of £10 million to £20 million this is much lower than the year before predictions of £40 million.
John O’Reilly, the chief executive of The Rank Group, said: “The recovery from the severe impact of the pandemic on our UK venues businesses, Grosvenor and Mecca, has certainly been slower than we anticipated.
“Since lockdown we have faced a huge increase in energy costs, high wage inflation, the slow return of overseas visitors to London and the increasing pressure on consumers’ discretionary income.
“We experienced strong trading over the Christmas and New Year holiday period, but recognise that the trading environment is likely to be challenging in the months ahead and cost pressures will continue to weigh heavily on the UK hospitality sector.”
