Rank and William Hill reported increases in its revenues

For Rank it was its casino division which did well, helping the group to full year profits of US$90 million, compared to US$78 million last year and City forecasts of around US$86 million. Customer numbers rose 7.9%, with Grosvenor Casinos making the biggest contribution to revenues and profits, overtaking Mecca Bingo. The bingo business suffered from increases in taxation.

As for the current year, like-for-like sales are up 2% in the first eight weeks, although the company admits the consumer environment remains tough, with higher taxes in both Britain and Spain.

Grosvenor revenues were down 6% although Mecca was up 8% during the period. Rank hopes to complete a refinancing in the second half of the year, and believes its operating performance and reduced debt levels put it in a good position to achieve this successfully. Investec issued a buy note and raised its price target from 156p to 167p, saying:

Meanwhile William Hill reported a 7% rise in full year profits to US$451 million, at the top end of analyst expectations. The figures were boosted by a strong performance from gambling machines in its shops, and its online business.

With the current stock exchange glitch it's hard to judge the market reaction, but Rank appears to be unchanged at 125p while William Hill is up 1.5p at 185p.