Rank Group pre-tax profit up 15% in “solid” year

Rank Group has posted a “solid set of results” for the 12 months to 30 June 2016, according to CEO Henry Birch, reporting pre-tax profit after exceptional items of £85.5m, a year-on-year increase of 15%.

Group revenue rose 2% to £753m, as did EBITDA before exceptional items, up to £128.2m from £126.3m.

Total digital revenue growth for the period stands at 11%.

Revenue for Mecca Bingo contracted to £287.7m from £289.6m, although Rank’s revenue from its Grosvenor Casinos rose to £438.6m from £423.4m.

Group operating profit before exceptional items fell 2%, to £82.4m, attributed by Rank to higher digital operating costs and a weak Q4 in its Grosvenor venues.

Henry Birch, Rank CEO, said: “This year we have focused on delivering significant projects to ensure we have the right platform in place for future growth.

“This included the migration of our digital business onto a new platform, the rollout of an improved retail casino management system and investments into new generation machines in both our casino and bingo venues.

“At the same time we have delivered a substantial increase in the dividend to our shareholders.

“Rank remains in a strong financial position, possesses market-leading brands and has a clear strategy for long-term growth.

“The board continues to look to the future with confidence.”

Rank, along with 888 Holdings, pulled out of a joint bid to acquire William Hill on Friday last week.

Henry Birch told Reuters: “The company has been looking at M&A for the last 18 months and continues to do so, and there is definitely a focus on the digital arena for that.”