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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.£717.3m
Last close183.60p
High / Low (52 weeks)248.5p / 155.0p
Stock market listingLN
Forecast net cash (£m)8.3
Forecast gearing ratio (%)N/A
TeamConsumer
SectorTravel & Leisure

Price performance

%1m3m12m
Actual(2)6.7(17.5)
Relative *(1.8)1.3(20.5)

* % Relative to local index

Other companies in sector Show

Company news

By The Book: Delving into Shares of The Rank Group Plc (LSE:RNK)

Wed, 16 May 2018 11:59:55 GMT

Putting Together The Pieces For Rank Group Plc (RNK.L): Technicals Update

Wed, 16 May 2018 09:45:00 GMT

Here's how analysts see The Rank Group Plc (LON:RNK) after this past week.

Mon, 14 May 2018 11:48:31 GMT

May Top Dividend Stocks To Look Out For

Wed, 09 May 2018 08:03:45 GMT

Vodafone Group is Oversold

Tue, 15 May 2018 16:18:45 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 11.9 6.5
2017A 755.1 128.8 79.3 16.2 11.3 6.2
2018E 754.0 120.0 73.9 14.7 12.5 6.2
2019E 774.8 125.0 78.0 15.7 11.7 5.7

Last updated on 20/06/2018

Investment summary

Rank Group aims to be the UK’s leading omni-channel gaming operator, with its Mecca Bingo and Grosvenor Casino brands. The Q318 trading update showed 17% growth in Digital, but the core Venues (84% of revenues) 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. Separately, a new CEO, John O'Reilly (formerly William Hill and Ladbrokes) has replaced Henry Birch.

Last updated on 29/06/2018

Industry outlook

The DCMS's consultation on the triennial review has now concluded. The FOBT stake reduction does not affect Rank, although the potential rise in remote gaming duty at the next Budget (from 15% to 20%) would affect all online gaming operators. Other cost pressures include the National Living Wage.

Last updated on 29/06/2018

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