Home » News » FTSE 250 » Rank Group PLC First half of the financial year has been a tough trading period

Rank Group PLC First half of the financial year has been a tough trading period

Rank Group PLC (LON:RNK) today announced Interim results for the six months ended 31 December 2018.

Financial highlights

H1 2018/19

H1 2017/18

Change

Financial

KPIs

Group like-for-like revenue

£366.0m

£375.0m

(2.4)%

Digital like-for-like revenue

£63.9m

£60.8m

5.1%

Digital revenue

£70.4m

£60.8m

15.8%

Venues like-for-like revenue

£302.1m

£314.2m

(3.9)%

Group EBITDA before exceptional items

£52.3m

£63.3m

(17.4)%

Group operating profit before exceptional items

£30.3m

£41.7m

(27.3)%

Adjusted profit before tax

£29.1m

£40.2m

(27.6)%

Adjusted earnings per share

6.1p

8.0p

(23.8)%

Statutory performance

Statutory revenue

£348.2m

£354.2m

(1.7)%

Group operating profit

£25.8m

£34.2m

(24.6)%

Profit before taxation

£22.8m

£32.8m

(30.5)%

Cash generated from operations

£56.0m

£61.9m

(9.5)%

Net cash

£7.7m

£4.0m

Basic earnings per share after exceptional items

4.8p

6.4p

(25.0)%

Dividend per share

2.15p

2.15p

0%

 

Operational highlights

· Digital revenue improved in the period with Mecca and Grosvenor continuing to grow customer volumes

· YoBingo! performing ahead of acquisition plan

· Grosvenor venues impacted by reduced contribution from major players, a weather impacted Q1 and challenging consumer back drop

· Key casino investments at the Barracuda and new gaming machines and electronic roulette across the estate

· Grosvenor’s single account and wallet offer, Grosvenor One, successfully trialled in the period; rollout scheduled by the end of FY 2018/19

· Transformation programme launched and gaining momentum

Outlook

· Trading in the short four week period to 27 January in line with management’s expectations

· Full year performance expected to be in line with current consensus

· Total Group cost savings of £10m identified for H2 2018/19, with a full year net benefit of £19m expected in FY 2019/20

John O’Reilly, Chief Executive of The Rank Group Plc said:

“The first half of our financial year has been a tough trading period, I am however encouraged by the Group’s improved performance in Q2. The three year transformation programme that we outlined at our Full Year results in August 2018 is now well underway with nearly 300 initiatives identified and tasked. The programme will gain further momentum in H2 2018/19 and the management team is positive about what can be achieved. While there is lots to be done to deliver the revenue improvements and cost efficiencies identified, I am confident in the outlook for Rank and excited about the opportunities that exist.”