Rank Group swings back into the black

Rank Group said on Thursday that it swung back into the black in the year to the end of June as the Mecca Bingo and Grosvenor owner hailed a year of strong financial progress.

The company posted a pre-tax profit of £15.5m versus a loss of £123.3m a year earlier. Meanwhile, like-for-like underlying operating profit was £46.5m, slightly ahead of analysts expectations and more than double the prior year's £20.1m.

Group underlying like-for-like net gaming revenue grew 9% to £734.4m, with all businesses in growth.

Rank also said it was resuming dividend payments, recommending a final dividend of 0.85p per share.

The company said it has made a "good" start to the new financial year, with group net gaming revenue up 10% for the first six weeks against a strong comparative.

Chief executive John O’Reilly said: "This has been a year of strong financial, operational and strategic progress for Rank. 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.

"With some important developments within our proprietary technology now in place, we are increasingly delivering a seamless and tailored cross-channel experience for our customers, leveraging our key area of competitive advantage."

At 0925 BST, the shares were up 5.8% at 74.09p.