Mecca owner Rank has warned of a “challenging” road ahead…as the gambling giant faces inflationary pressure and dwindling demand.

While underlying operating profit for the full year was £40.4m, in line with guidance provided in June, Rank said its position would “remain challenging in the months ahead with high inflation hitting consumer discretionary expenditure and inflationary cost pressures”.

“Our nine London casinos, which account for over 38 per cent of Grosvenor’s revenue in normal trading conditions, have seen very weak customer volumes with overseas visitors few in number, and only starting to return in the final few weeks of the year,” chief exec John O’Reilly said.