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Rank Group - trading expected to be in line with current consensus

Rank Group - trading expected to be in line with current consensus

Thu 31 Jan 2019 07:59 by ukcitymedia.co.uk about : operational news, trading updates - 0 Comments - 6034 words


Full year outlook in line

 

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."

 

Ends

 

 

Definition of terms:

·       Any reference to revenue or like-for-like group revenue is before adjustment for customer incentives;

·       EBITDA is operating profit before exceptional items, depreciation and amortisation;

·       Adjusted profit before tax is profit from continuing operations before taxation adjusted to exclude exceptional items and other financial gains or  losses resulting from foreign exchange gains and losses on loans and borrowings.  See Financial Review for reconciliation;

·     Adjusted earnings per share is calculated by adjusting profit attributable to equity shareholders to exclude exceptional items, other financial gains or losses, unwinding of the discount rate in the disposal provisions and the related tax effects as detailed in note 7;

·       "H1 2018/19" refers to the unaudited six-month period to 31 December 2018 and "H1 2017/18" refers to the unaudited six-month period to 31  December 2017;

·       Like-for-like measures have been disclosed in this report to show the impact of club openings, closures, and relocations;

·     Prior period like-for-like measures are amended to show an appropriate comparative for the impact of club openings, closures, relocations, acquired businesses and discontinued operations; 

·      The Group results make reference to "'adjusted" results alongside our statutory results, which we believe will be more useful to readers as we manage our business using these adjusted measures.  The directors believe that exceptional items and other adjustments impair visibility of the underlying performance of the Group's business and accordingly, these are excluded from our non-GAAP measurement of revenue, profit before tax, EBITDA, operating profit and EPS.  Adjusted measures are the same as those used for internal reports;

·       Venues includes Grosvenor Venues, Mecca Venues and International Venues; and

·     The Group reports segmental information on the basis by which the chief operating decision maker utilises internal reporting within the business. In the current year, the internal reporting of the operating segments has been modified following changes in management responsibilities.  As from 1 July 2018, UK Digital, Enracha Digital and YoBingo! were combined into a single operating segment which is now known as Digital. Enracha Venues and Belgium were also combined into a single operating segment which is now known as International Venues.  All prior period comparables have been restated to reflect these changes.

 



These articles are summaries / highlights and dont always include all financial news updates. Check at company website INVESTORS INFORMATION for full published results.


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