It was 'all the threes' for casino and bingo company Rank Group (RNK) after its Grosvenor Casinos and Mecca bingo businesses posted 33 per cent growth in their combined adjusted operating profits. The casino business was quids in thanks to full houses in London and a huge 65 per cent rise in digital revenue for the year to 30 June. Meanwhile, the cut in bingo duty from 20 per cent to 10 per cent helped lift Mecca's profits in spite of flat revenues - itself an achievement after two years of declines. Finance director Clive Jennings said part of the £11.3m tax windfall was invested in the group, a trend that would continue. He added that December's Remote Gaming Duty had added £6.6m to its costs and would add a further £6m in the year to June 2016.
Chief executive Henry Birch said Paul Richardson, who was recently recruited as group director of strategy and corporate development, will be responsible for assessing acquisition opportunities. Consolidation in the gaming industry is rife, with several deals - such as that between Ladbrokes (LAD) and Coral - on the slate. But Mr Birch said he "would not be rushed into anything", as "doing deals because other people are is not the right motivation".
Analysts at Peel Hunt expect adjusted pre-tax profits of £78m in the year to June 2016, leading to EPS of 15.6p (up from £74m and 14.6p in FY2015).
| RANK GROUP (RNK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 258p | MARKET VALUE: | £1bn | |
| TOUCH: | 253-259p | 12-MONTH HIGH: | 259p | LOW: 152P |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 75p* | NET DEBT: | 18% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 557 | 181.0 | 35.0 | 2.7 |
| 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 | 738 | 74.5 | 15.1 | 5.6 |
| % change | +4 | +417 | +236 | +24 |
Ex-div: 10 Sep Payment: 21 Oct *Includes intangible assets of £396m, or 101p a share | ||||
