Trading Statement

Rank Group PLC
27 November 2003

27 November 2003

THE RANK GROUP PLC
TRADING UPDATE FOR THE 21 WEEKS TO 22 NOVEMBER

Group operating profit in the 21 weeks since 30 June 2003 was in line with last
year, despite the weakening US dollar, which has adversely impacted the reported
results of Deluxe and Hard Rock, and additional goodwill amortisation relating
to acquisitions. Overall we expect full year results to be broadly in line with
expectations.

GAMING
Mecca Bingo continued to deliver solid results with steady growth in revenues
and profits. The replacement of UK bingo duty on 24 October 2003 with a gross
profits tax has had little noticeable impact on trading trends to-date. Our
decision to remove admission charges has been welcomed by customers and should
be positive for the business in the longer term.

Grosvenor Casinos experienced mixed results in the period. The London market has
remained soft and this has particularly affected the three mid-market casinos
where results fell short of the comparable performance in 2002. In contrast, the
Clermont has again performed well and while at the Park Tower admissions and
handle have grown substantially following the completion of its refurbishment in
July, a lower win percentage has held back results in the period. The provincial
casinos have enjoyed further growth in handle, turnover and operating profit,
albeit at a lower rate than experienced in the first half of the year. The win
percentage returned to a more normal level in the period and for the year
to-date is 16.2%, compared to 16.6% in 2002. The relocations of Plymouth and
Portsmouth have recently been completed and both casinos are seeing strong
growth in admissions and handle. There are plans to relocate the Cardiff casino
and to open additional casinos in Bolton and Stoke-on-Trent during 2004,
bringing the total number of UK casinos to 36. The two Hard Rock casinos
continue to make progress, with London performing particularly well.

Blue Square successfully launched its new games website, MeccaGames.com, in
October followed by the new Aces High game in early November and has seen
encouraging growth in stakes. The internet and telephone sports betting
businesses have continued to perform in line with expectations.

HARD ROCK
Overall, Hard Rock has seen a slight improvement in like-for-like sales trends
since the half year, with more encouraging signs over the last six weeks. Food
and beverage sales have continued to be positive (now up 2.6% year to-date) but
low levels of international tourism continue to depress merchandise sales,
leaving overall like-for-like sales for the year to-date down 3%. Since the
half-year, new owned cafes have opened in Cardiff and Detroit and franchised
cafes in Moscow and Nassau. Agreements have also been reached for additional
franchised cafes in Oslo, Dublin and Panama.

The Group is making good progress in extending the Hard Rock brand into
non-restaurant activities. As part of the joint venture with Sol Melia, the new
Hard Rock Hotel in Chicago is expected to open in the New Year and an agreement
has recently been signed with Tarsadia Hotels for a further Hard Rock Hotel to
be built in the fashionable Gaslight district of San Diego. This hotel, which is
expected to open in early 2006, will be a franchise arrangement under which Hard
Rock's financial commitment will be limited to a merchandise shop within the
hotel. Elsewhere, the two hotel/casino developments on Seminole Indian
reservation land in Florida are on-track to open in March and May 2004.

DELUXE
Overall, Deluxe produced a good set of results in the period with Film
performing very strongly, compensating for lower than anticipated profit within
Media. Deluxe Film had an outstanding trading period with film footage and
profits well ahead of 2002, despite the loss of the Universal contract. Titles
produced during the period included Master and Commander, Kill Bill and Elf. In
Deluxe Media, manufacturing volumes were ahead of last year with DVD growth more
than offsetting further decline in VHS and distribution volumes were also
strong. However, incremental costs associated with the transition from VHS to
DVD have continued during the peak production period for the business,
undermining overall profit performance.

FINANCING
The Group announced on 6 November 2003 that it will redeem all of the
£125,000,000 7 1/4 per cent. guaranteed bonds due 2008. The decision to redeem
these bonds early will give rise to a one-off charge of approximately £10.7m.
The Group also announced that it would redeem all of the outstanding 8.25 per
cent. convertible cumulative redeemable preference shares of 20p each in the
capital of the Company on 9 December 2003. Both events will significantly reduce
the Group's total cost of finance from 2004 and thereby enhance earnings per
share.

GAMING DEREGULATION
The UK Government has published the first draft of the Gambling Bill and we
welcome the Secretary of State's continued commitment to deregulate the UK
gaming industry. While the finer points of the draft legislation have yet to be
finalised, the Group believes that it is well placed to benefit from the changes
proposed and is determined to capitalise on its already strong market positions
in bingo, casinos, internet gaming and sports betting.

Enquiries:
The Rank Group Plc                                           Tel: [phone]
Ian Dyson, Finance Director
Peter Reynolds, Director of Investor Relations

Press Enquiries:
The Maitland Consultancy                                     Tel: [phone]
Angus Maitland
Suzanne Bartch



                      This information is provided by RNS
            The company news service from the London Stock Exchange