Rank's bingo division has been feeling the squeeze

Three weeks into the ban, entries to its Mecca Bingo halls in Scotland had fallen, as had spend per head, in the 16 weeks to 16 April, the company said.

Despite a steady start to 2006, Rank warned it was feeling the pinch from rising costs while changes to taxes on gaming machines will hit profits.

On the upside, like-for-like sales at its Hard Rock Cafe division rose 9%.

"Mecca Bingo is facing the impact of the smoking ban in Scotland. Hard Rock continues to trade strongly in its cafes business as well as through its gaming and hotel interests," Rank said in a statement.