Rank starts to recover from smoking ban

Mecca bingo owner, Rank, indicated it is starting to recover from the smoking ban, implemented last summer. The group said the recent fall in admissions was far more gentle than the severe slowdown which initially followed last year’s new smoking ban law.

The smoking ban has hit bingo harder than any other leisure sector.

Ian Burke, Rank’s chief executive, said the smoking ban has cost us between 5% & 7% of Mecca’s admissions. We were also hit by changes in gaming laws which forced us to remove the most popular machines in the halls. However, we have seen a slight improvement at Mecca.

The group posted a 15% rise in full-year pre-tax profits, excluding one-offs, to £46 million, marginally better than the City predicted.

Furthermore, the group which owns casino chain Grosvenor and online gaming firm Blue Square, has transferred its £700 million pension scheme to an arm of Goldman Sachs. Peter Gill, the group’s finance director said the move would save Rank just over £30 million in contributions and earn it at least £20 million.

Revenues at Blue Square, its internet division, increased £13 million to £52 million, a sign of where the future may lie for Rank.

Ian Burke is also urging Chancellor Alistair Darling to drop the double taxation faced by bingo clubs (which pay both VAT and a 15% profits tax) in his Budget on 12 March.

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