Third Quarter Trading Update

RANK GROUP PLC
7 October 1999



THIRD QUARTER 1999 TRADING UPDATE
(26 June to 25 September 1999)

The  Rank  Group is taking analysts and shareholders to  Orlando
for  site visits to Universal Studios Escape and Hard Rock  Cafe
and therefore is issuing a trading update ahead of the trip.  In
effect this release represents an early third quarter update.

Group  operating  profit for the three months  to  25  September
1999, excluding associates, was 8% ahead of the same period last
year,  after adjusting for the change in accounting policies  on
pre-opening  expenses and FRS12.  Trading has  been  mixed  with
solid  performances in Gaming, Holidays and Odeon  offset  by  a
weaker period in Deluxe and the absence of any one-off franchise
sales in Hard Rock.

Overall, revenue has been flat but a concerted effort to improve
margins  and  reduce operating costs has improved profits.   The
overhead   cost  reduction  exercise  announced  in  August   is
proceeding to schedule.

The  outlook for the fourth quarter is satisfactory,  helped  by
the  fact  that  Butlins will trade throughout the  period  this
year,  Deluxe video duplication is expected to obtain its  usual
seasonal  uplift and benefits will flow from the cost  reduction
programme.  Overall therefore we expect the results for the full
year to be broadly in line with our expectations.

DELUXE

Film  processing  continued  to perform  well  with  total  film
footage  20%  ahead  of  last year.   Films  processed  included
'Runaway Bride' and 'The Thomas Crown Affair'.

Video duplication volumes were disappointing in both the USA and
Europe  with only two major titles, 'The Mummy' and  the  'Blair
Witch Project', produced.  The position is more encouraging  for
the  important fourth quarter with significant orders for  sell-
through titles already received, although the final results will
depend on the timing of orders for a number of major titles.

Pinewood occupancy remains high.

HARD ROCK

The rate of decline of revenue in comparable cafes was 1% better
than  the  second  quarter.  New cafes opened  in  1998/99  have
generally produced a satisfactory performance, although this has
been  moderated  by the disappointing early performance  of  the
newly relocated Orlando cafe.

Actions  have  been taken to reduce both operating and  overhead
costs.   Changes in merchandise sourcing and logistics  resulted
in  an  improvement  in  merchandise margin  of  2.3  percentage
points.

In  1998  Hard  Rock recorded £7m income from one-off  franchise
deals.   The  expectation is that one-off income for this  year,
net  of  provisions against licensing receivables, will  not  be
material.

HOLIDAYS

The  UK holiday market experienced a difficult summer with total
industry bookings 8% down on 1998.  Despite these adverse market
conditions, Rank Holiday volumes for the quarter were broadly in
line  with  last  year with tariffs up 7%.   The  three  Butlins
Family Entertainment Resorts traded in line with expectations in
their first summer with tariff 17% ahead of last year.  Customer
satisfaction levels are high.

Haven had a reasonable summer trading period with like for  like
tariff  up  2%.  Caravan sales were up 6% in volume  and  7%  in
value  benefiting  from the conversion of the Butlins  sites  at
Craig  Tara  and Hafan y Mor.  The acquisition of  three  French
parks from Campotel for a consideration of £11m was completed in
September.

Warner continued to perform well with volume up 7%.  Cricket St.
Thomas opened in September and Thoresby Hall remains on schedule
to open in late 2000.

Oasis and Resorts USA continue to make good progress.

LEISURE

Gaming

Mecca  continued its good first half performance  and  increased
profit due to increased spend per head and higher margins.   The
new Hunslet, Leeds club opened at the end of August.

Grosvenor  casinos turnover was up 3% in the quarter  with  both
admissions and handle per head higher than 1998.  The new casino
in   Salford   and  the  relocated  Newcastle  casino   produced
satisfactory results.

Entertainment

Odeon  benefited from the release of 'Star Wars Episode 1 -  The
Phantom  Menace' and 'Austin Powers II' to recover most  of  the
first half profit shortfall against last year.

Nightscene  operating profit was ahead of last year despite  the
disposal of 15 units earlier in the year.  This reflects  higher
take per head and stringent control of costs.

Tom Cobleigh

Tom  Cobleigh continued to improve primarily due to last  year's
new  openings.  Like for like sales improved in the quarter  but
remain slightly down in the year to date.

UNIVERSAL STUDIOS ESCAPE

Paid  admissions  to  Universal Studios Escape  (comprising  the
original  Universal  Studios Florida  and  the  new  Islands  of
Adventure)  were  up 75% in the quarter and we  expect  this  to
continue to build as Islands of Adventure opened at the  end  of
May and has been well received.

Rank's  share of Universal interest charge for the  quarter  was
£8m  (1998 - £1.4m).  The Group's share of profit after interest
from Universal for the full year is expected to be at around the
breakeven level.

FINANCIAL

The  interest charge, excluding associates, was £23m (1998 £12m)
for  the quarter.  The increase over 1998 reflects higher levels
of  average debt and lower interest capitalised particularly  on
Universal  Studios Escape.  The average interest  rate  for  the
year to date was 6.8%.

The  Group expects to announce its preliminary results  for  the
full year to 31 December 1999 on 25 February 2000.


Enquiries:

The Rank Group - Tel:  [phone]
Mike Smith, Chief Executive
Ian Dyson, Finance Director
Kate Ellis-Jones, Investor Relations

The Maitland Consultancy - Tel:  [phone]
Angus Maitland
Laura Frost