The company's battered share price recover some lost ground as investors reacted with relief to Teare's exit.

Rank shares have more than halved in value from a peak of around 550 pence in April 1995, to drop below 200p last month and the stock has tumbled out of the FTSE 100 index of leading British companies.

Teare's resignation accompanied a gloomy trading statement which showed a 20-per cent fall in profits to 111 million pounds ($186.4 million) in the three months to September 26, the key trading period for the company.

"Despite the fact that these are disappointing numbers people will focus on the value in the group and the opportunity for someone new coming in," said Henderson Crosthwaite analyst Jane Anscombe.

The company owns well known high street brand names like the Odeon cinema chain, Mecca bingo halls, theHard Rock Cafe and pub chain Tom Cobleigh. It also owns film and video duplication business Deluxe.

Rank chairman Denys Henderson said the board believes "an even more determined approach to drive the business forward is required and that this is the time for a new leadership."

Rank Commercial Director Douglas Yates will serve as acting chief executive while the company seeks a new leader.

Teare, who joined Rank from English China Clays in April 1996, had come under mounting pressure from leading shareholders to turn the company around. The group's biggest shareholders include Prudential with over five per cent and Schroders with more than 10 per cent.

Rank shares set an all time high of 545 pence at the time of Teare's appointment but halved in the first year of his stewardship.

Over the last month Rank has also suffered from a spate of broker downgrades as it became more evident trading over the summer had worsened.

The group was hit by competition from the World Cup football tournament and poorsummer weather. The strength of sterling also enticed many Britons to take their summer holidays abroad.

One of the main planks of Teare's strategy was heavy investment in the holiday division, including a 139-million pound upgrade of the Butlins British holiday centres.

Third quarter turnover was up three per cent at 653 million pounds ($1.09 billion), but operating profit fell 16 per cent to 116 million.

All divisions saw profits decline. The heaviest fall of 34.5 per cent came in the group's leisure division, which includes Mecca Bingo, Grosvenor casinos and Odeon cinemas.

Teare has a two-year service contract and received a 512,000-pound salary last year, including bonuses and benefits. A Rank spokeswoman said no severance terms had yet been agreed.

The Times newspaper reported Teare is expected to get a payoff of more than one million pounds.