Rank Group, the parent company of Grosvenor Casinos and Mecca Bingo, has reported a 13.8% rise in adjusted profit before tax to £55.2m from £48.5m for the year ending December 2010. Meccabingo.com sees largest levels of growth although marketing cuts margins. The company sees a good start to 2011 but is somewhat cautious for the full year.

Rank claimed the number of customers were up 7.9% to 2.5m with growth in all four of its operations increasing by 1.7% to 22.4m. The average spend per visit increased 3.4% to £25.30, although the average revenue from each customer declined 2.5% to £225.86.

Mecca Bingo showed an increase in revenues of 0.6% to £234.5m but operating profit declined 8% to £29.7m mainly as an increase in tax. Results showed that revenues for food and drink increased by 11.2%.

The company stated revenues increased to £567.8m from £540.0m and adjusted earnings per share came in at 10.2p compared to a previous 8.9p. Dividends which were previously 1.35p have been increased to 2.40p per share.

The company reported a positive start to the year which is inline with other gaming report in recent weeks. "Since the start of 2011, Rank has maintained operational momentum, delivering 2 percent growth in like-for-like revenue during the first eight weeks of the year," However the group is somewhat cautious. "Moving into 2011, the consumer environment remains challenging with higher sales taxes in both Great Britain and Spain; as well as the introduction of a full smoking ban in Spain," Rank added.

There were other positive signs in the report. Net debt was reduced from £186.8m to £123.4m as a result of positive operating cash flow and refunds in VAT following the ongoing legal battle with the government in recent years.

CEO Ian Burke said, 'The group continued its progress in 2010, delivering strong growth in earnings through improved revenue and profit generation and a further substantial reduction in net debt.

'At the same time, we stepped up investment in our businesses and improved our competitive position in our key markets.'

Rank, which plans to roll out 10 more casinos over northern and central England over the next few years is planning to complete a refinancing during the second half of 2011 due to the expiry of its existing banking facilities in 2012.

The group added that Grosvenor Casinos were now the groups largest single business as operating profits increased 16.5% to £36m. Rank Interactive saw revenues rise by 13.6% to £57.7m and meccabingo.com saw the largest levels in growth. Although the increased marketing costs associated with online brands weakened margins operating profit increased by 5.3% to £7.9m

Operating costs increased by 4.3% to take account of longer opening hours and increased number of venues and the group operating profits jumped 6.9% to £62m.