There wasn't the megadeal management at gambling outfit Rank Group (RNK) had been hoping for after rival William Hill (WMH) spurned its advances, but there's still a high-stakes internal strategy to focus on. The group recently moved its UK digital business on to a new platform provided by third-party Bede Gaming, which enabled it to launch sports betting and an improved online poker product. Chief executive Henry Birch said that while the group has dominated the physical poker market, it has seen rivals take the lead online; something it will address.
Grosvenor Casinos was the stronger of its brands, but operating profits were down a slither to £66.2m from £66.5m last year due to a disappointing final quarter across the venue estate, which countered digital growth. Operating profits also dropped 3 per cent across the Mecca bingo business due to the impact of remote gaming duty and higher digital operating costs. Mr Birch said several changes were being made here and that there should be "significant growth" in Mecca digital by the year-end.
House broker Peel Hunt expects pre-tax profits of £83.9m for the year to June 2017, leading to EPS of 16.9p, up from £77.4m and 15.4p in 2016.
| RANK GROUP (RNK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 230p | MARKET VALUE: | £897m | |
| TOUCH: | 228-231p | 12-MONTH HIGH: | 302p | LOW: 200p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 90p* | NET DEBT: | 12% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 584 | 45.0 | 8.1 | 3.6 |
| 2013 | 625 | 42.7 | 7.4 | 4.1 |
| 2014 | 708 | 14.4 | 4.5 | 4.5 |
| 2015 | 701 | 74.5 | 15.1 | 5.6 |
| 2016 | 709 | 85.5 | 18.2 | 6.5 |
| % change | +1 | +15 | +21 | +16 |
Ex-div: 8 Sep Payment: 20 Oct *Includes intangible assets of £404m, or 103p a share | ||||
