Rank Group may sell its iconic Hard Rock business in what could mark the final break-up of a leisure conglomerate that once spanned Odeon cinemas, Pinewood film studios and Butlin’s holiday camps.
“Hard Rock continues to trade strongly and is entering a new phase of its development. Accordingly, we have decided to conduct a review of … strategic options,” Rank said in a statement on Tuesday.Analysts said a Rank reduced to just a gaming business spanning bingo halls and casinos could effectively be setting itself up to be taken over as investors prepare for a relaxation of Britain’s gaming laws.
At 0845 GMT, Rank shares, which hit a 4-1/2 year low at 197.25 pence last Thursday, were up 2.1 percent at 202.5 pence to value the business at 1.18 billion pounds.
While Rank has shed British household names, it has still suffered criticism for being an old-fashioned conglomerate.
Now its Hard Rock music memorabilia restaurants may be up for sale after a first half in which like-for-like revenue grew 8 percent at company-operated cafes worldwide with total sales up 6 percent in the 26 weeks to June 25.
Rank owns about 70 Hard Rock cafes and around 50 are operated under franchise.
Hard Rock, which has branched into hotels and casinos, accounted for 30 percent of Rank’s 810 million pounds revenues in 2005, and made an operating profit before exceptional items of 34.8 million pounds, 28 percent of the group total.
No comments yet.