Rank Group warns on FY profits following 'softer' UK trading performance

Gambling outfit Rank Group warned on full-year profits on Monday following a "softer performance" in its UK venues throughout the third quarter.

Rank, which highlighted that it had entered Q4 with visitor numbers down across its Grosvenor casinos portfolio, said it had seen "some improvement" in Grosvenor's post-April performance, but noted that it was still "considerably weaker than expected", principally due to a slower than expected return of higher spending overseas customers to its London casinos, continued softness in visitor numbers across the UK, and a lower-than-average casino win margin in the quarter.

On the other hand, the FTSE 250-listed firm said the performance of its other business segments was broadly in line with internal expectations.

"As a result of the recent performance in Grosvenor venues and continued inflationary cost pressures across the group, subject to normal casino win margins between now and the year-end, we expect like-for-like underlying operating profit to be approximately £40.0m for the year ending 30 June 2022, lower than the previously guided range of £47.0m-55.0m," said Rank.

Reporting by Iain Gilbert at Sharecast.com