Troubled bingo and gaming operator Rank has scrapped its final dividend blaming the smoking ban and 'restrictive' gaming regulations.

The company added that a weakening in consumer confidence has resulted in an uncertain outlook for 2008. Shares were off 8.3p, or 7.7% to 99.3 pence.

'The board has taken a number of actions which it considers appropriate in view of these challenging circumstances, including the decision not to pay a final dividend for 2007,' the group said in a statement.

Rank pledged to resume dividend payments once trading conditions and the market outlook have improved. The group announced a 1% increase in like-for-like revenue and a 2% decline in total revenue for the 49 weeks to 9 December.

It anticipates that group operating profit for 2007 will be 'broadly in line' with market expectations.

Rank said that the trading figures reflect a stabilisation in revenue from Mecca Bingo and Grosvenor Casinos since the time of its last market update in October.