Key highlights
H1 operating profit up 25% with all brands improving period-on-period
Strong digital growth with revenue up 16% and operating profit up 75%
Improving performance across both Grosvenor Casinos and Mecca
New digital platform provider Bede Gaming appointed
New management team in place
Bingo duty reduction enabled investment into Mecca venues and customer prizes
Substantial deleveraging in the period with cash inflow from operations up 46%
Strong dividend growth with interim dividend of 1.60p, up 19% on 2013/14
Adjusted EPS up 34%
Henry Birch, chief executive of The Rank Group Plc said:
"I am very pleased to be announcing a strong set of results with operating profit (before exceptional items) up 25%, following improvements across all parts of the business which has driven a 19% increase in our interim dividend. We have continued our focus on improving our digital business and this strategy has resulted in a 16% increase in digital revenues and 75% increase in operating profit. To further strengthen our offer in this important channel, we have today announced an agreement with Bede Gaming to supply our new core digital platform which will ensure the Group has a flexible and modern platform to build on."
"The first half saw three senior management appointments including two managing directors to lead Mecca and Grosvenor Casinos, and the newly created role of Group Director of Digital and Cross-Channel Services. These appointments further strengthen the Group's management team and ensure that we are well placed to take advantage of future growth."
"During the period, we opened a new Grosvenor Casino in Southend and completed the refurbishment of our Bournemouth casino. This was combined with a 42% increase in Mecca venue maintenance following the reduction in bingo duty from 20% to 10%. The Group's venue maintenance and development programme remains very busy in the second half and beyond into 2015/16. Rank remains in a strong financial position, possesses market-leading brands and has a clear strategy for long term growth. As a result, the Board continues to look to the future with confidence."
