Rank Group PLC on Thursday said it has returned to profitability as revenue ticked up in ‘a year of strong financial, operational and strategic progress’.
Rank was a leading small-cap winner on the London Main Market midday Thursday, with its shares up 8.1% to 75.68 pence.
The Maidenhead, England-headquartered casino operator reported a £15.5 million pretax profit for the financial year that ended June 30, swung from the previous year’s £123.3 million loss.
Revenue increased 7.7% to £734.7 million from £681.9 million, while cost of sales fell 18% to £425.8 million from £521.3 million, producing the swing to profit.
‘This has been a year of strong financial, operational and strategic progress for Rank,’ commented Chief Executive John O’Reilly. ‘We are continuing to rebuild profitability following the impact of lockdowns and the material inflationary pressures experienced in recent years.
‘Trading continues to improve due to ongoing investment in our people, our products and the facilities within our venues businesses, and the continued development of the proprietary technology which is driving the growth of our digital business.’
As a marker of the board’s ‘confidence in [Rank’s] improving trading and financial position’, the company said it is resuming dividend payments. Rank declared a final dividend of 0.85p per share for financial 2024, having suspended payments back in 2020 as coronavirus hurt its earnings.
Rank Group paid a total dividend of 2.80p for financial 2020, down 63% when compared to the 7.65p distribution paid a year earlier. This had included a final payout of 5.50p per share.
Looking ahead, Rank believes it has ‘made a good start to the new financial year’ having ‘exited 2023/24 with good momentum which has continued into 2024/25’.
Among notable developments, Rank said discussions are ‘well advanced’ regarding the disposal of its UK Digital non-proprietary business. It expects to complete the sale ‘in the next few months’.
Additionally, it ‘has a strong three-year programme of growth initiatives in place for each of our businesses focused on: cash maximisation in land-based bingo; recovery and growth in our Grosvenor venues business; scaling the digital business both in the UK and internationally and maximising the opportunities of the anticipated land-based legislative reforms’.
CEO O’Reill remarked: ‘With inflation receding, disposable incomes improving, investment continuing to be made in the customer proposition and a strong pipeline of growth initiatives underway, we are confident in the future prospects of the group.’
Copyright 2024 Alliance News Ltd. All Rights Reserved.
