Rank Group (RNK)

Business description

Rank is a gaming-based leisure and entertainment company. Its Grosvenor and Mecca brands are market leaders in UK multi-channel gaming and it also has operations in Spain and Belgium. 86% of FY16 revenues came from venues and 14% from digital operations.

Stock data

Market cap.£837.6m
Last close214.40p
High / Low (52 weeks)255.1p / 186.8p
Stock market listingLN
Forecast net debt (£m)23
Forecast gearing ratio (%)6
SectorTravel & Leisure

Price performance

Relative *(1.3)8.2(23.1)

* % Relative to local index

Other companies in sector Show

Company news

Rank Group Looking For Acquisitions After Withdrawing From William Hill Race

Wed, 24 Aug 2016 17:03:45 GMT

The Rank Group Plc (LSE:RNK): Are analysts right about the Drop in earnings?

Thu, 26 Jan 2017 07:48:22 GMT

William Hill Rejects $4.2 Billion Offer From 888, Rank Group

Tue, 09 Aug 2016 15:01:53 GMT

888, Rank Group Mulling Bid for Bookmaker William Hill

Mon, 25 Jul 2016 06:35:46 GMT

Rank Group and 888 Lose William Hill Takeover Bid

Mon, 15 Aug 2016 09:45:00 GMT

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2015A 738.3 126.3 74.1 14.6 14.7 5.7
2016A 753.0 128.2 77.4 15.4 13.9 7.6
2017E 764.0 127.0 76.0 15.3 14.0 7.3
2018E 785.0 133.0 81.5 16.4 13.1 6.4

Last updated on 23/03/2017

Investment summary

Rank has a unique opportunity to leverage leading high street casino and bingo brands online. With platform issues resolved, its digital casino is growing strongly and the introduction of a single wallet later this year could be a game changer. Only 3% of Grosvenor casinos customers are also digital customers yet 50% of them gamble online, illustrating the cross-sell opportunity. Economic pressures are weighing on the venues' results but they are highly cash generative. An expected move into net cash in FY18 underpins a progressive dividend policy and gives Rank plenty of firepower to participate in industry M&A as opportunities become available. The next IMS is 18 May.

Last updated on 04/04/2017

Industry outlook

The UK government triennial review into gaming machines (due to report Q1/Q217) is expected to mainly focus on FOBT machines in betting shops, but possible tighter restrictions on TV gambling advertising pre the 9pm watershed could impact Mecca online along with other bingo operators. Cost pressures include the National Living Wage and the extension of the UK 15% POC tax to gaming 'free play' from August 2017.

Last updated on 04/04/2017

Key management

Ian Burke, Chairman
Henry Birch, CEO
Clive Jennings, FD
Sarah Powell, Head of Treasury & Investor Relations
Paul Richardson, Group Director - Strategy & Development

Company address

Statesman House
Stafferton Way
United Kingdom
01628 504000
View website