Rank will use competitive tendering for the procurement of nearly all construction services.
It does use negotiated contracts for a few schemes, but this will mainly be because it needs the work to be undertaken quickly.
Current and future projects
Capital investment in the six months to June 2002 was very similar to that in the same period in 2001, just over £51m. Out of this total, some £19.9m was invested in gaming operations and £15.6m in its Hard Rock division.
The group’s first UK Hard Rock Casino opened in Manchester in July 2002, its Brighton Casino was relocated in August 2002 and a second Hard Rock Casino opened in London in November 2002. More casinos are planned to open across the country over the next 18 months. The Hard Rock division also opened four new cafes in the first half of 2002 as well as undertaking two major refurbishments.
A review of the gaming laws is under way, which could lead to a change to the 1968 Gambling Act. Currently, the act requires customers to be members for 24 hours before they are allowed in, restricts live entertainment and other forms of gambling and bans alcohol at gaming tables. If these restrictions are changed, the UK could see a major growth in new casinos. The more far-reaching deregulatory changes could take place as early as 2005.
It has been estimated that the number of casinos in the UK could grow by 150, each costing upwards of £120m, with a few costing as much as £700m. An amendment to the Gaming Act would result in a major increase in Rank’s capital programme, as it would for other players in the casino market.
Rank’s main businesses are its gaming, Hard Rock and Delux operations. Gaming comprises Mecca Bingo, Grosvenor Casinos, UK Hard Rock Casinos, E-gaming and Rank Leisure Machine Services. Hard Rock includes the group’s cafes, hotels, overseas Hard Rock Casinos and live music venues, and the Delux business looks after film processing and video duplication. The group also operates in Spain where, in 2002, it bought three bingo clubs.
The events of 11 September 2001 are still affecting some parts of the group’s activities, as the decline in tourism has led to a drop in income for several parts of its business. However, actions to improve local market penetration have restricted the sales decline in some parts of the business – for example, to less than 2% in the Hard Rock division in the first half of 2002.
Director of development Gary Dooley Contact details
Stafferton Way, Maidenhead,
Berkshire SL6 1AY
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