Jobs go as smoking ban hits Rank

Half of Rank's Scottish bingo players are smokers

Leisure group Rank is to cut 200 jobs at Mecca Bingo clubs across the UK and 40 posts at its head office.

It came as Rank reported a 3% fall in underlying first-half profit, and says Scotland's smoking ban has hit trade at its 14 Mecca Bingo halls there.

First half pre-tax profits were £40.7m ($77.5m), against £41.9m last year, but profits were up at its Hard Rock cafes.

In July, Rank had said it was looking at selling its Hard Rock cafe group, but no decision has yet been made.

Rank says out of the 200 jobs being lost, around 24 jobs will go at its bingo clubs in Scotland.

The job losses follow a strategic review of all the company's operations.

The job losses will help to cut the wages bill, with head office jobs being shed as operations are moved from London to Maidenhead.

Smoking clientele

Chief executive Ian Burke said priorities of the recent strategic review included: re-energising UK gaming; deciding whether to offload Hard Rock restaurants; exiting its Deluxe Media business; restructuring the balance sheet; and saving £16m of annual costs.

The savings come after Rank was hit by a 17% fall in profits at its 117 Mecca Bingo halls.

Mr Burke said bingo attendance in Scotland was down as a result of the smoking ban, and warned of a similar impact in England and Wales when restrictions are introduced there.

"About half of our customers smoke compared with one in four of the population so on that basis you would expect a similar impact," said Mr Burke.

The group, which also owns Grosvenor Casinos and internet bookmaker Blue Square. is now targeting non-smokers in hopes of luring them towards its bingo halls.