The Rank Group
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The Rank Group plc (LSE: RNK) was established on December 22, 1995 as a public limited company in England and Wales and in October 1996 it became a holding company owning all the outstanding shares of the Rank Organisation.
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[edit] Origin
The Rank Group Plc is the successor in interest to the Rank Organisation which was formed out of the business interests of its founder, J. Arthur Rank.
[edit] Redirection
In February 2000, the group sold its interests in Pinewood Studios and the ODEON cinema chain. It also divested itself of its engineering companies plus its Butlins, Warner and Haven Holidays holiday and recreation facilities, which were all sold to Bourne Leisure.
In December 2005, it sold Deluxe Film for $750m, leaving five main businesses: Mecca Bingo, Grosvenor Casinos, Hard Rock, Blue Square and Deluxe Media, the last two of which are unprofitable. In 2006 it held around £800m of debt. The casino division was hoped to be well-placed for growth as part of current and forthcoming Gambling Deregulation laws which was hoped to see the introduction of a number of new Las-Vagas style casinos being built in the UK.
In the short term, profits are under pressure. there may be some pressure due to the forthcoming smoking ban (already law in Scotland, due to hit the UK in Summer 2007) and the increases in the UK National Minimum wage (which rose from £5.15 to £5.45 per hour in September 2006), on or just-above which most of its employees earn.
In late 2006 it was one of the worst performing companies in the FTSE250, with a stock market value of £1.2bn (compared to £2.0bn six months ago). It is currently being prepared for sale either to a private equity interest or joint partner.
On December 7, 2006, Rank sold the Hard Rock business to the Seminole Tribe of Florida for US$965 million. Rank is keeping the Hard Rock Casino in London, but will be changing its name. Included in the deal is 124 Hard Rock Cafes, four Hard Rock Hotels, two Hard Rock Casino Hotels, two Hard Rock Live! concert venues, and stakes in three unbranded hotels.
[edit] Gaming
Rank's main gaming brands: are Mecca bingo, Grosvenor Casinos and Blue Square.
[edit] Blue Square
Blue Square was launched on 5 May, 1999 and is one of the largest interactive betting services in the UK. The product suite offered by Blue Square has grown from its traditional bookmaking business to now offer all aspects of the gaming market including online casino, slots and online poker. The fixed odds betting services covers many channels including the Internet, Interactive TV, WAP and telephone.
Blue Square started in-running betting on the FTSE 100 Index followed by online Snail and Hamster Racing, although subsequent events featuring Alligators and Turkeys allegedly attracted the interest of animal rights activists and The Vegetarian Society respectively.
Blue Square was a wholly owned subsidiary of the Intercapital Group Ltd (ICAP) until January 2003 when it was acquired by the Rank Group for £37m. It showed a 2005 loss of £2m.
[edit] Grosvenor Casinos
Grosvenor Casinos is a UK based chain of over thirty casinos located in major towns and cities across the UK with two sister casinos located in Belgium. Their headqarters are based in Maidenhead, Berkshire.
[edit] Mecca Bingo
Mecca Bingo is a UK based bingo company, with 100 sites located across the UK in most major towns and cities. The company also operates Meccabingo.com & Meccagames.com as an extension of the Mecca Bingo brand.
[edit] See also
- RHM - formerly Rank Hovis McDougall, the family flour milling company of J. Arthur Rank
