A change in Rank's financial year-end, and the ongoing benefit from government VAT refunds, combined to considerably complicate the gaming operator's results. However, the underlying performance was resilient enough, with operating profits rising around 4 per cent to £65.5m despite the impact from tough trading in Spain and flat average spend by hard-pressed consumers.
Revenues at Grosvenor Casinos, which pending regulatory scrutiny will soon acquire Gala Casinos, rose by 4.2 per cent to £256m, with operating profits at the 37 casinos up 11 per cent to £42.8m as higher customer numbers more than offset a lower spend per visit. However, profits at Mecca Bingo were hit by rising property costs following several rent reviews and declined over 5 per cent to £28.3m.
In common with the rest of the industry, the most impressive growth was at online division Rank Interactive, where operating profit rose by 26.5 per cent to £10.5m. Meccabingo.com and Grosvenorcasino.com were key drivers and easily compensated for the weak performance from sportsbetting site Bluesq.com.
Broker Peel Hunt forecasts 2013 EPS of 12.5p (11.6p in 2012).
RANK (RNK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 133p | MARKET VALUE: | £519m | |
| TOUCH: | 132-134p | 12-MONTH HIGH: | 109p | LOW: 154p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 58p* | NET DEBT: | £41.8m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 522 | -26.1 | -1.30 | nil |
| 2009 | 540 | 52.0 | 9.90 | 1.35 |
| 2010 | 568 | 73.5 | 13.7 | 2.40 |
| 2011^ | 557 | 181.4 | 35.0 | 2.66 |
| 2012^ | 573 | 40.8 | 7.3 | 3.60 |
| % change | +3 | -77 | -79 | +35 |
Ex-div: 29 Aug Payment: 31 Oct *Includes intangible assets of £154m, or 39p a share ^Year-end 31 December | ||||
