Rank suffers from lack of hit films
Thursday 22 April 1999
Turnover was similar to last year's, with shortfalls in the holidays and leisure divisions offset by growth in other businesses, particularly in Deluxe, the film and video processing and distribution division.
Operating profits were in line with expectations, but lower than last year's first-quarter figure of pounds 21m, Sir Denys said.
Fortunately for shareholders, the first quarter is traditionally Rank's weakest period, largely because the holiday division - which accounted for 20 per cent of last year's profits - is at a seasonally low ebb. Profits have been reduced still further by the need to refurbish and convert some of the Butlins holiday camps.
However, the outlook remains satisfactory, Sir Denys said. Bookings at the refurbished Butlins are running 10 per cent ahead of last year, with the new Sony US film processing contract boosting Deluxe, which generated 30 per cent of last year's profit.
New merchandise lifted profits at Hard Rock, while the cinemas have high hopes of a surge in business when a new run of films beginning with the new Star Wars epic comes to screens in June.
But the group's pounds 50m-a-year interest bill remains a burden, and analysts are in no hurry to alter current forecasts of around pounds 247m and earnings of 23p this year, rising to pounds 265m and 23.3p next year - a far cry from the pounds 376m in 1994. The shares have rallied from their low of 186p in February, helped by vague takeover talk, but they dipped 16.5p to 262p yesterday.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 3 Isis flag: What do the words mean and what are its origins?
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
Hilary Swank: Million Dollar Baby star says she turns down roles to care for elderly father
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Donald Trump to Jeb Bush: Your wife likes ‘Mexican illegals’
Isis flag: What do the words mean and what are its origins?
The Greece debt crisis explained in less than 100 words
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...