Adverse weather conditions threaten Rank Group profits

Adverse weather conditions threaten Rank Group profits

Friday, April 6, 2018 Posted by Craig Davies
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Drop in full year performance now expected

London-listed Rank Group Plc has issued a 2017/18 full-year profit warning, as adverse UK weather conditions have impacted its Grosvenor Casino and Mecca Bingo venues performances.

Rank has revealed that March’s ‘Beast from the East’ snowstorm had led to a decline in customer activity, across its Grosvenor and Mecca properties.

"Both UK venues businesses have been impacted by weaker than expected visits which have been compounded by two periods of cold weather," detailed the Rank Group statement.

The negative impacts have seen Rank report a 2% decrease in group 2017/18 like-for-like revenues, with the company detailing a 2% revenue drop for Mecca, in addition to a 9% decrease for Grosvenor Casinos.

Entering April 2018, Rank has re-adjusted its full year corporate expectations, with the company lowering its operating profits forecast to £76-78 million (former target: + £81 million).

The Rank Group is also still continuing its search for a new chief executive, after Henry Birch confirmed his departure earlier this month and handed in his 12 month notice, ahead of issuing these concerns.

During 2018 Birch will maintain his current role of CEO to ensure an orderly handover to the next incumbent, before leaving the UK based gambling firm to take the reins at high street retailer Shop Direct.

Totally Gaming says: With the blast of hail, rain and snow that swept across the United Kingdom for such a sustained period, it was largely expected that a number of firms across a variety of sectors would report disappointing figures. With news of such a significant drop of expected profits for the year, as well as share price being down, it will be interesting to note how they fare in the coming weeks and months.

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