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The Rank Group suffers heavy losses for the financial year

The Rank Group reported a 41.4% year-on-year decrease in profit before tax to £46.7m for the financial year ending 30 June 2018.

RankGroup

The group’s like-for-like revenue also took a hit, falling by 2.3% to £738m.

Rank’s EBITDA also saw a 6.8% drop which now sits at £120m.

The company has described the year as “challenging” thanks to “disappointing performance” from its Grosvenor Casino establishments where revenue took a 6.1% hit dropping down to £373m.

According to The Rank Group: “Performance was materially impacted by further enhanced customer due diligence following the published advice of the UK Gambling Commission in September 2017.  Consequently, customer visits declined resulting in revenue falling 9.9% in H2 compared to a 2.4% fall in H1.”

Rank’s revenue from Mecca venues also fell by 2.6% down to £208.1m, which according to the group was driven by a decline in customer visits of 7.9%.

On a positive note the group's UK digital revenue stream saw an increase of 9.9% brining in £122.5m for the year.

John O’Reilly, CEO of The Rank Group, said: “With the backdrop of a disappointing performance in 2017/18, we are now moving quickly to identify the priorities which will begin to realise the significant underlying potential that I have now seen first-hand since joining the Group in early May.

“We are taking steps to increase our focus on the customer, to accelerate growth in the digital business, to drive cost efficiencies across the business and to strengthen our organisational capabilities.”

The Rank Group has also carried out a restructuring of its management team and board. Changes have been made to retail structure, while a new Transformation Officer and chief a new Chief Information Officer have been appointed.

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