Slump in Rank's profits adds to pressures on Teare
Friday 08 August 1997
Rank was the biggest blue-chip faller on a day that the FTSE 100 index raced away, slumping 30.5p to 340p. Since Mr Teare took over as chief executive last year, Rank's shares have under performed the FTSE 100 index by almost 50 per cent.
The poor figures overshadowed Rank's decision to spend more than pounds 310m buying back up to 10 per cent of its own shares over the next few weeks.
Mr Teare said yesterday; "We have embarked on a very big fundamental overhaul of Rank. Of course, I am disappointed we have not got more to show for its today. But it always takes longer than the market wants. There is a lot happening in the engine room and I am confident it will come through."
Rank plans to form a worldwide chain of Hard Rock Cafe hotels, with Singaporean hotel entrepreneur Ong Beng Seng, based on the popular restaurant chain. Rank has already launched a Hard Rock TV channel and record label.
Mr Teare is also looking to open a new themed restaurant chain to go alongside the Hard Rock Cafe. Other plans include a chain of US casinos and the group has recently applied for a US gaming licence. Rank is due to announce a big shape up of its Butlin's holiday camps next month. Analysts expect at least two of the five Butlin's sites will be completely rebuilt and renamed in an attempt to revitalise the flagging brand.
But observers remained sceptical about Mr Teare's reforms. "Whenever Rank produces an announcement these days, the share price falls. Mr Teare will have to start coming up with the goods or he is likely to go," one analyst said yesterday.
Rank plans a rapid expansion of Tom Cobleigh, its themed pub chain. But a delay in openings saw Tom Cobleigh's first-half profits fall well short of expectations, adding fuel to criticisms that Rank paid over the odds for the business.
Rank's pre-tax profits fell to pounds 85m (pounds 144m) for the six months to June due to a fall in video sales following a lack of big film releases.
The group is raising more than pounds 100m by selling its property portfolio to British Land, the UK's second largest property group. The money will be used to part fund the share buy-back. The group would consider further share buy-backs next year.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...