Rank Organisation Plc interim results announced yesterday were received well by the city and its shares rose 8.5p to 400p. However, the group’s failed bid for the licence to run the national lottery cost Rank ?4m that is reflected in the company’s interim results. Rank’s profit before tax, non-operating items and Rank Xerox’s restructuring costs were up 41% on the comparative period last year to ?127.9m, on turnover up 8.2% to ?970.3m on the equivalent period last year. Rank’s film and television division came top of the table with turnover up 13.7% to ?314.8m on profit up 84.2% to ?24.5m. The company attributes the success of this division to improvement arising in video duplication Trading for all four divisions, film and television, holidays, recreation and leisure increased 16.5% to ?86.1m on total operating profit up 10% to ?73.4m. Rank’s chief executive Michael Gifford that in terms of the group’s gaming activity the lottery would affect Rank marginally, if at all. Rank’s share of the profits from the Rank Xerox business, before restructuring costs, increased by 38% to ?94.6m. The company’s share of the worldwide restructuring of Xerox amounted to ?62.0m before tax. Rank invested ?115.0m in its core business in the last period in areas that included Warner and other holiday businesses, bingo and video duplication. It is planning to build an ?80m holiday village near Folkestone in Kent.
