Key events recorded in the Rank Group’s interim results for the six months ended 30 June 2008 included the stabilisation of Group revenues following business disruption in the second half of 2007, £15 million of cost reduction savings and the completion of the transfer of final salary pension plan assets and liabilities. Senior management was also strengthened with the appointment of Paddy Gallagher as Group finance director and Phil Urban as managing director of Grosvenor Casinos.

Ian Burke, chief executive of the Rank Group said: "During the first half of 2008, we succeeded in stabilising the Group's financial performance, following a very difficult end to last year. Although Group revenue and operating profit were substantially lower than in the first six months of last year, our performance reflects a significant improvement compared with the second half of 2007."

Revenue and operating profit from Mecca Bingo and Grosvenor Casinos during the second half of 2007 were adversely affected by a number of legislative, regulatory and fiscal changes. Revenue of £110.1m in Mecca Bingo was 16.9% lower than in the first half of 2007 and operating profit was down 31.4% to £21.6m. Grosvenor Casinos revenue of £102.2m was 7.2% lower and operating profit was down 31.0% to £14.5m. According to the company these figures reflect the effects of the smoking bans in England and Wales, the loss of Section 21 gaming terminals and higher rates of gaming duty.

Rank Group says it welcomes proposals from HM Government for an increase in B3 gaming machines in Britain's licensed bingo clubs. However it was disappointed with the Government's decision not to abolish the system of 'Double Taxation' (bingo revenues, unlike any other form of gaming, are subject to both VAT and gross profits tax) in its Budget 2008. The company continues to support the Bingo Association as it presses for an end to the Government's discrimination against Britain's licensed bingo clubs industry.

Whilst remaining interested in a small number of the 16 new casino licences being offered by local authorities under the Gambling Act 2005, Rank does not intend to overpay for any licences. The company feels that its track record as a responsible operator of casinos in Great Britain makes Grosvenor Casinos a strong candidate. It is expected that the licences will be awarded during 2009 with the first of the new casinos operational in 2010 or 2011.

First half trading at Top Rank Espana, the Spanish bingo clubs business, was affected by the weakening Spanish economy, although the strength of the Euro against Sterling bolstered its contribution to Group revenue and operating profit. Blue Square, the interactive gambling division, made a good start to the year but increasing competition in its core UK sportsbook and bingo markets held back first half revenue and profit. Revenue grew by 3.1% to £27.0m, although this performance reflects a marked deterioration in performance in the second quarter as average stakes declined on both sports betting and games.

Ian Burke commented, "The trading environment for all of our businesses remains challenging, with rising operating costs and increased financial pressures on our customers. Over the course of recent months we have experienced a slight weakening in the Group's performance. We remain positive on the longer term outlook for the UK gaming market. Our aim is to attract more customers to our businesses as we build on service improvement, games development, capital investment and regulatory reform to create more entertaining gaming experiences." (E-08.01.08)

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