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. In FY17, 85% of revenues came from its venues and 15% from its digital operations.

Stock data

Market cap.£664.2m
Last close170.00p
High / Low (52 weeks)248.5p / 170.0p
Stock market listingLN
Forecast net cash (£m)8.3
Forecast gearing ratio (%)N/A
TeamConsumer
SectorTravel & Leisure

Price performance

%1m3m12m
Actual(19.4)(27.8)(20.3)
Relative *(24)(25.6)(21.7)

* % Relative to local index

Other companies in sector Show

Company news

Rank Group shares tumble after profit warning

Thu, 05 Apr 2018 07:05:19 GMT

BRIEF-Rank Group Says Group Like-For-Like Revenue For 13 Weeks To April 1 ...

Thu, 05 Apr 2018 06:33:45 GMT

Was The Rank Group Plc's (LON:RNK) Earnings Decline Part Of A Broader Industry ...

Mon, 09 Apr 2018 18:16:12 GMT

The Rank Group Plc (LSE:RNK) Revealing an ROE of 0.152069

Tue, 24 Apr 2018 09:22:30 GMT

Rank issues profit warning as adverse weather impacts venue performance

Thu, 05 Apr 2018 12:00:26 GMT

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 753.0 128.2 77.4 15.4 11.0 6.0
2017A 755.1 128.8 79.3 16.2 10.5 5.7
2018E 754.0 120.0 73.9 14.7 11.6 5.7
2019E 774.8 125.0 78.0 15.7 10.8 5.3

Last updated on 06/04/2018

Investment summary

Rank’s trading update (13 weeks to 1 April) showed 17% growth in Digital, but the core Venues disappointed, with Mecca down 2% and Grosvenor down 9% on a like-for-like basis. The shortfall was largely due to fewer customer visits, as well as a lower gross win margin from VIPs. The company expects the weaker consumer environment to continue and has now guided to FY18 clean EBIT of £76-78m vs previous consensus of £83m. We have adjusted our forecasts to the lower end of guidance. The stock has dropped sharply on the news and trades at 5.7x EV/EBITDA and 11.8x P/E for CY18e, which is a meaningful discount to peers.

Last updated on 06/04/2018

Industry outlook

The DCMS's consultation on the triennial review has now concluded, although the full results are yet to be revealed. A stake reduction in FOBTs will not affect Rank, although other proposals (responsible gambling obligations, advertising guidelines) will have an impact on all online operators. Cost pressures include the National Living Wage and the extension of the UK 15% POC tax to gaming 'free play' (retrospective enforcement from 1 August 2017).

Last updated on 02/03/2018

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