Grosvenor Casinos suffers cost of living crisis

Another profit warning has been issued by the UK’s Rank Group, owners of the Grosvenor Casinos chain.

The company said that it had seen some signs of improvement in its business recently, but it was generally being hit by the cost of living rises. It is expecting its profits to be around £10m to £20m.

The company said: “Due to the high operating leverage within Grosvenor and its relative importance to the group as a whole, movements in its net gaming revenue will have a significant impact on the group’s operating profit for the year.”

Its CEO, John O’Reilly, added to the company statement with: “Weak consumer confidence and pressure on disposable income is resulting in a tougher than expected trading environment for our UK venues, particularly in Grosvenor where we are seeing customers spending less per visit.

“While we expect these challenges to continue to impact our recovery into the second half of the financial year, we have implemented a series of measures to deliver incremental cost savings and to drive revenues.”

The company also has the Mecca bingo clubs chain.