Deluxe sale in the script as Rank slips
LEISURE giant Rank is considering hiving off its Deluxe film, DVD and video business after it reported a 20% fall in first-half profits.
The board believes that...subject to a detailed review of the implications, now would be an opportune time to separate Deluxe Film and Deluxe Media from the group,' Rank said.
Chief executive Mike Smith said: 'We have to talk to lots of people before making a decision, but should be in a position to say more when we publish our full-year results in February.'
The announcement comes just weeks after Rank's joint broker, Deutsche Bank, said a break-up of the business was a 'distinct possibility over the next six to 18 months'.
It also follows the loss of a DVD production and distribution contract, believed to be with Fox Entertainment.
Rank, which runs Hard Rock cafÈs, Grosvenor casinos and Mecca bingo halls, saw pre-tax profits fall to £63.9m in the six months to 30 June from £80.2m a year ago. Operating profit at Deluxe plunged 30% to £19.2m despite the success of Kill Bill Volume 2 and Spider-Man 2.
