Slump in Rank's profits adds to pressures on Teare

City analysts said yesterday that Andrew Teare, the chief executive of Rank, was living on borrowed time after the troubled leisure group announced disappointing results.

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.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...

Reach Volunteering: Trustees with Finance, Fundraising and IT skills

Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...

Day In a Page

Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
Transfer window: Ten things we learnt

Ten things we learnt from the transfer window

Record-breaking spending shows FFP restraint no longer applies
Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
Markus Persson: If being that rich is so bad, why not just give it all away?

That's a bit rich

The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

Coleman on course to end half a century of hurt for Wales

Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference