Leisure giant Rank is to put its stake in Universal Studios Escape up for grabs and restructure its Hard Rock restaurant operation, the company has revealed. The Hard Rock brand would be developed outside its core restaurant business.
Rank said it would be focussing on four core businesses for the present û Deluxe, its video and film business; Holidays, which include Butlins and Haven; Gaming, which includes Mecca and Grosvenor Casinos; and Hard Rock. Last week, it announced the sale of both its Odeon Cinema chain and the Pinewood Studios business, the latter to a consortium headed by former First Leisure and Channel 4 boss Michael Grade.
The announcements came as results across the businesses for 1999 were mixed. Universal Studios experienced a £6m drop in operating profits turning in a net loss of £2m compared to a profit of £22m in 1998. Overall the company saw profits fall 8% to £228m for the year to December 31. Holidays and Gaming were the strongest performers.
Hard Rock profits were down £5m from £47m in 1998 to £42m last year. Turnover fell by £1m, from £240m in 1998 to £239m last year. However, the company points out that Hard Rock's like-for-like sales decline was 9.2% for 1999, but had improved to 6.7% down in the fourth quarter and this had been maintained in the first two months of 2000. These improved like-for-like percentages were helped by a first-ever advertising campaign. An expanded campaign is planned for spring and summer of 2000. The company said efforts would centre on leveraging the Hard Rock brand.
Trade at Rank's Tom Cobleigh pub chain improved with turnover up from £47m in 1998 to £59m last year pushing profits up from £7m to £8m. Tom Cobleigh improved sales as a result of new openings and a steady improvement in like-for-like sales which were up 2%
in the second half. Eight new pubs opened in the year including one in each of the three Butlins Family Entertainment Resorts, two in Scotland and the first three in the South of England. Rumours persist that Tom Cobleigh will be sold û an asking price of around £120m is quoted.
The dramatic drop in profits at Universal Studios Escape is put down to a disappointing performance from Islands of Adventure, which opened at the end of May last year.
Performance has fallen short of expectations, particularly in the fourth quarter, Rank said.
This was due to a combination of weakness in the Orlando market, poor weather, including unprecedented hurricane activity, and a disappointing millennium (in line with most destinations in the USA).
Rank said it would be focussing on four core businesses for the present û Deluxe, its video and film business; Holidays, which include Butlins and Haven; Gaming, which includes Mecca and Grosvenor Casinos; and Hard Rock. Last week, it announced the sale of both its Odeon Cinema chain and the Pinewood Studios business, the latter to a consortium headed by former First Leisure and Channel 4 boss Michael Grade.
The announcements came as results across the businesses for 1999 were mixed. Universal Studios experienced a £6m drop in operating profits turning in a net loss of £2m compared to a profit of £22m in 1998. Overall the company saw profits fall 8% to £228m for the year to December 31. Holidays and Gaming were the strongest performers.
Hard Rock profits were down £5m from £47m in 1998 to £42m last year. Turnover fell by £1m, from £240m in 1998 to £239m last year. However, the company points out that Hard Rock's like-for-like sales decline was 9.2% for 1999, but had improved to 6.7% down in the fourth quarter and this had been maintained in the first two months of 2000. These improved like-for-like percentages were helped by a first-ever advertising campaign. An expanded campaign is planned for spring and summer of 2000. The company said efforts would centre on leveraging the Hard Rock brand.
Trade at Rank's Tom Cobleigh pub chain improved with turnover up from £47m in 1998 to £59m last year pushing profits up from £7m to £8m. Tom Cobleigh improved sales as a result of new openings and a steady improvement in like-for-like sales which were up 2%
in the second half. Eight new pubs opened in the year including one in each of the three Butlins Family Entertainment Resorts, two in Scotland and the first three in the South of England. Rumours persist that Tom Cobleigh will be sold û an asking price of around £120m is quoted.
The dramatic drop in profits at Universal Studios Escape is put down to a disappointing performance from Islands of Adventure, which opened at the end of May last year.
Performance has fallen short of expectations, particularly in the fourth quarter, Rank said.
This was due to a combination of weakness in the Orlando market, poor weather, including unprecedented hurricane activity, and a disappointing millennium (in line with most destinations in the USA).
