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The Rank group, operators of Mecca Bingo, looks as though it is going to be in one heck of a mighty court challenge with Her Majesty’s Revenue and Customs. They were recently granted a tribunal decision to claim back more than £36 million in VAT from the department as monies that were overpaid for Interval Bingo.

Although Mecca Bingo did not expect the HMRC to roll over and play dead, or simply give them their money back, as at the time of the ruling they said that they didn’t expect this money to make any difference to their financial position this year. It now looks as though it is going to be a hugely long and drawn out procedure. The Court appeal is not due to take place until 2009, and Mecca Bingo have been embroiled in this matter since 2006. But I suppose that it is a great deal of money, and possession is 9/10ths of the law, so the HMRC is bound to want to hang onto what they rightfully believe belongs to them.

My concern is that with the announcement of this new development, the Rank Group share price fell again by 6.9% and will this beleaguered company be able to hold out until they actually get their High Court hearing. Rumour has had it that the company is trying to get the best possible return on investment for their shareholders and get out of the business. But I suppose that with a drop in the share price, there is not hope of this at present.

Tags: Bingo, Mecca Bingo