Rank Group is the UK’s largest multi-channel casino operator (Grosvenor) and the second largest multi-channel bingo operator (Mecca). It is also the fourth largest bingo operator in Spain. Management seeks to grow its online exposure while improving the performance of offline brands.
John O'Reilly
CEO
Richard Harris
CFO
Sarah Powell
Director of IR and ESG
Forecast net debt (£m)
N/A
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (17.8) | (6.6) | (48.4) |
Relative | (13.8) | (7.6) | (47.9) |
52 week high/low | 143.4p/52.4p |
Rank Group has faced numerous external challenges since 2020: the ravages of the COVID-19 pandemic and tighter regulatory requirements, in particular the negative effects of required affordability restrictions, have been followed by the recent cost of living crisis and higher inflation. These external challenges have masked the group’s underlying transformation, which is extending and improving the product offer, while making the organisation more efficient to drive future growth and innovations. With revenues at key assets well below pre COVID-19 levels, Rank Group has the potential to demonstrate rapid revenue and profit growth on a normalisation of demand and costs pressures, before the potential for easing regulation is considered. Based on consensus EV/sales, Rank Group’s valuation is at a significant discount to its own historical multiples.
Y/E Jun | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 329.6 | (13.1) | (98.7) | (20.3) | N/A | N/A |
2022A | 644.0 | 107.5 | 26.7 | 4.3 | 16.3 | 3.0 |
2023E | N/A | N/A | N/A | N/A | N/A | N/A |
2024E | N/A | N/A | N/A | N/A | N/A | N/A |
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