The Rank Group which owns the Mecca Bingo club chain and Grosvenor Casinos has released it latest trading results for the 16 weeks to October 16th. The statement showed that customers at its land based bingo clubs declined, casino numbers increased and the online business grew by nearly 25 percent.

Rank which is a major player in the gaming industry and now 74 percent owned by Guocco following the controversial takeover batter earlier this year said it was encouraged by “the increasing popularity” of its UK brands. Given the problems facing the UK consumers it described 2012 as “likely to be more challenging” but claimed it was “in a strong financial position” with a “clear strategy for sustained long-term growth.”

Overall revenues for the 16 weeks were flat but there were significant fluctuations with the Spanish operations, Top Rank España, seeing a 19 percent decline in sales and Rank Interactive up by 21 percent.

The number of casinos players at the 45 Grosvenor sites increased by 7 percent however this was offset by an 8 percent decline in the amount customers spent per visit. Bingo players at the 99 land based bingo clubs were down 3 percent but spend increased by 2 percent.

One of the major factors facing Rank is the VAT refund which currently amounts to around £280m. A final decision is expected from the European Court of Justice following an appeal from the UK’s Revenue & Customs on 10th November. The ECJ is expected to rule in favour of Rank which may see further claims of £275m reports claim.

An analyst at Evolution Securities commented: “The consumer outlook is hardly inspiring, but Rank has the strategy and assets in place to continue to deliver improving and, ultimately, shareholder cash returns post an expected favourable ruling in the ECJ on its VAT rebates.”