Rank Group, the UK leisure company, was the third biggest faller in the FTSE today after it said its business outlook is uncertain following the national smoking ban and changes to gaming laws, and warned it could breach its banking covenants if trading deteriorates further.

The owner of Mecca Bingo and Grosvenor Casinos negotiated the five-year banking facilities, which comprise a £250m (€348m) revolving credit facility and a £150m term loan, barely eight months ago in April. The proceeds have been earmarked partly to repay a $100m bond due to mature next month.