Summary of results

During 2009, the Group achieved 21.9% growth in adjusted earnings per share, despite the effects of the global economic recession. This resulted largely from an improved operational performance and lower financing costs which offset higher UK gaming taxes.

Group revenue grew by 3.4% to £540.0m, reflecting the contribution from new casinos and bingo clubs and a 0.8% like-for-like increase. Operating profit of £58.0m was 3.8% lower than in 2008 as increases in UK gaming taxation introduced in HM Government’s 2009 Budget outweighed the benefit of a temporary reduction in VAT.

Taxation accounted for more than 50% of operating cost increases in the year. Excluding the effects of tax changes, foreign exchange movements and changes to our estate of bingo clubs and casinos, the Group maintained operating costs in line with 2008 levels.

Revenue* and operating profit**

	Revenue* (£m)		Operating profit** (£m)
	2009	2008	2009	2008
Mecca Bingo	233.0	227.6	32.3	37.9
Top Rank España	36.2	35.8	5.6	6.9
Grosvenor Casinos	220.0	206.2	30.9	25.9
Rank Interactive	50.8	52.6	7.5	7.6
Central costs	-	-	(18.3)	(18.0)
Group	540.0	522.2	58.0	60.3

• * All references to revenue in this section are before adjustment for free bets, promotions and customer bonuses.
• ** All references to operating profit in this section are before exceptional items, operating profit by segment has been reallocated following the implementation of IFRS 8 (“operating segments”). See note 2 of the Group financial statements.

	Revenue* (£m)		Operating profit** (£m)
	2009	2008	2009	2008
H1	266.0	263.8	30.2	31.8
H2	274	258.4	27.8	28.5
Full year	540.0	522.2	58.0	60.3

Across the Group, our businesses served a total number of 2.4 million customers, representing a 4.4% increase over the prior year. Customer visits (land-based only) of 22.1 million were slightly ahead of 2008 levels.

Our two largest businesses, Grosvenor Casinos and Mecca Bingo, each delivered revenue growth. In Grosvenor Casinos, this performance was driven by a significant increase in both active customers and customer visits; in Mecca Bingo, growth in average spend per visit offset a modest decline in customer visits.

Grosvenor Casinos grew operating profit by 19.3% to £30.9m, even after incurring £1.3m in additional taxation on player-to-player card room games. Despite the growth in revenue, operating profit of £32.3m from Mecca Bingo was 14.8% lower than in 2008, largely as a result of increased taxation.

Top Rank España grew revenue by 1.1%, benefiting from the strength of the euro against Sterling. In euros, revenue declined by 8.9%, with customer visits and spend per visit both down as Spain’s severe economic conditions continued to impact trading. Operating profit declined by 18.8% to £5.6m.

Revenue from Rank Interactive declined by 3.4% to £50.8m with continued growth from meccabingo.com outweighed by lower revenues from sports betting and poker. Operating profit of £7.5m was in line with 2008, principally as a result of reduced marketing expenditure.

Central costs of £18.3m were slightly higher than in 2008 due to an increase in share-based payments.

Current trading

During the eight weeks to 21 February 2010, the Group grew revenue by 11% and like-for-like revenue by 5%.

Grosvenor Casinos continued to be the main driver of growth with like-for-like revenue up 14% on increased customer visits and an above average win margin in our London casinos.

Like-for-like revenue from Mecca Bingo declined by 3% as a result of lower customer visits. This performance was adversely affected by the unusually cold weather at the start of January.

Top Rank España generated 1% growth in revenue from an increase in customer visits.

Rank Interactive achieved a 9% revenue increase as a result of continued improvements from its bingo and casino websites.