Rank issues profit warning as adverse weather impacts venue performance

The governance of Rank Group Plc has today issued a corporate profit warning, detailing that its Grosvenor Casino and Mecca Bingo venues have been negatively impacted by adverse UK weather conditions recorded during Q1 2018.

Updating the market, Rank details that March’s snowstorm has impacted customer activity/engagement with its UK Grosvenor and Mecca properties.

The London-listed gambling group details a 9% decline in like-for-like revenue performance for its Grosvenor venues, whilst Mecca Bingo reports a 2% revenue decline for the 13-week trading period to 1 April.

Readjusting its market forecasts, Rank governance expects to deliver 2017/18 full-year operating profits of between £76-78 million, revising its previous target of £81 million.

Prior to the profit warning, Rank had detailed solid corporate progress during 2017/18, a period in which the company had implemented its ‘cost control program’ seeking to optimise its venues revenue and earnings capabilities.

Furthermore, the company noted the ongoing accelerated growth of its digital assets for online casino and bingo, which recorded combined revenues of £60 million.

This March, Henry Birch confirmed his departure as Chief Executive of Rank Group Plc, joining UK highstreet retailer Shop Direct as new leader.