FTSE 250 movers: Blue Square one bright spot for Rank

07.05.2008

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Its mostly pubs, brewers and housebuilders leading the way up among FTSE 250 constituents, with both sets pinning their hopes on the Bank of England announcing a rate cut tomorrow.

Directories publisher Yell Group is in demand after Idearc, the US publisher of Yellow Pages phone directories, announced better than expected results yesterday.

Bingo and casino operator Rank is another looking for assistance from the government. The firm expressed disappointment today at the government's decision to reject industry calls for taxation reform for bingo in its Budget 2008, arguing that HM Treasury should grant bingo parity with other forms of gaming in Britain through the abolition of VAT on bingo revenues.

The company could certainly do with some help, as a combination of tax changes and the impact of the smoking ban knocked its revenue by 8% in the first four months of 2008, though the company put a brave face on the performance.

"Given the difficult trading environment for our retail gaming businesses we are encouraged by the group's start to 2008," Rank added, though it expects a challenging year for the industry.

For the 17 weeks to 27 April, Mecca Bingo revenue declined by 14% on a like-for-like basis, with admissions down 13% and spend per head down 1%, though Rank says this is a modest improvement in trading compared with the final four months in 2007.

Grosvenor Casinos revenue declined by 8% on a like-for-like basis, with admissions down 14% and spend per head up 5%. Revenue at Blue Square, its interactive business, was strongly ahead of the comparable period in 2007.

FTSE 250 - Risers

Marston's (MARS) 227.00p +13.78%

Yell Group (YELL) 191.00p +8.68%

Johnston Press (JPR) 140.75p +7.85%

Punch Taverns (PUB) 580.00p +7.51%

Greene King (GNK) 574.00p +7.29%

Barratt Developments (BDEV) 284.00p +6.17%

Ashtead Group (AHT) 70.50p +6.02%