LEISURE group Rank prepared to bring the curtain down on a 60-year relationship with the film industry yesterday by announcing the separation of its Deluxe unit.

The company, which made hundreds of films, including the Carry On series, said it was in discussions with potential buyers of its Deluxe Media unit, which makes and distributes DVDs and videos.

Rank said it was also pursuing options for its Deluxe Film business, which offers technical services to Hollywood studios, with a demerger or sale the likely outcomes.

The company, which owns the Hard Rock Cafe and Mecca bingo chains, was founded in the early 1940s and made its reputation as a leading UK film producer and cinema owner.

The separation of Deluxe would complete an overhaul that has seen Rank sell other businesses related to the film industry, including Pinewood film studios and the Odeon cinema chain.

Details emerged as Rank announced pre-tax profits fell to £168.1m during the 12 months to December 31 from £187.1m a year earlier.

Although profits from gaming and Hard Rock were higher than a year ago, it was the opposite story at Deluxe owing to ''a much weaker film schedule than in previous years'' and the loss of two contracts in 2003.