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.£818m
Last close209.30p
High / Low (52 weeks)257.7p / 186.8p
Stock market listingLN
Forecast net debt (£m)23
Forecast gearing ratio (%)6
TeamConsumer
SectorTravel & Leisure

Price performance

%1m3m12m
Actual6.13.0(16)
Relative *4.5(2.9)(31.2)

* % Relative to local index

Other companies in sector Show

Company news

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

Tue, 09 Aug 2016 15:01:53 GMT

Rank Group profits hit by the National Living Wage

Thu, 26 Jan 2017 12:22:30 GMT

Rank Group Plc Sees 25% Rise in Profits

Fri, 30 Jan 2015 12:00:00 GMT

888, Rank Group Mulling Bid for Bookmaker William Hill

Mon, 25 Jul 2016 06:35:46 GMT

Rank Group Looking For Acquisitions After Withdrawing From William Hill Race

Wed, 24 Aug 2016 17:03:45 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 14.3 5.6
2016A 753.0 128.2 77.4 15.4 13.6 7.4
2017E 764.0 127.0 76.0 15.3 13.7 7.1
2018E 785.0 133.0 81.5 16.4 12.8 6.3

Last updated on 16/02/2017

Investment summary

Rank has a unique opportunity to leverage leading UK 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. Economic pressures are weighing on venues’ results, but they are highly cash generative. An expected move into net cash by end FY18 underpins a progressive dividend policy and gives Rank plenty of firepower to participate in industry M&A as opportunities become available. The calendar 2017e EV/EBITDA of 6.6x looks very low.

Last updated on 16/02/2017

Industry outlook

The UK government triennial review into gaming machines (due to report late Q117) 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 21/12/2016

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
Maidenhead
SL6 1AY
United Kingdom
01628 504000
View website