Almost all of the key metrics at bingo halls and casinos operator Rank Group PLC (LON:RNK) headed lower in the financial year just ended.
Management said the performance was in line with expectations that were revised lower in April, a month or so after chief executive officer Henry Birch served notice of his intention to jump ship and join Shop Direct.
READ: Rank Group appoints betting industry veteran, John O'Reilly as its new chief executive officer
With the exception of UK digital revenue, which rose 9.9% to £122.5mln from £111.5mln the year before, Rank’s key performance indicators headed lower in the year to the end of June – and even the digital side has seen a slow-down in the second half of the year.
Like-for-like revenue fell 2.3% to £738.0mln from £755.2mln the year before while adjusted profit before tax tumbled 7.8% to £77.0mln from £83.5mln.
Group operating profit before exceptional items fell 7.8% to £77.0mln, slap bang in the middle of the company’s revised guidance range of £76mln - £78mln.
On the plus side, the recently acquired YoBingo business is performing strongly and exceeding expectations.
READ: Rank expands in Spain with YoBingo acquisition
"I joined Rank because of its underlying potential,” explained John O’Reilly, the newish chief executive.
“With the backdrop of a disappointing performance in 2017/18, we are now moving quickly to identify the key priorities which will begin to realise the significant underlying potential that I have now seen first-hand since joining the group in early May," he said.
"We are taking steps to increase our focus on the customer, to accelerate growth in the digital business, to drive cost efficiencies across the business and to strengthen our organisational capabilities. This will be delivered within a transformational programme framework, which will ensure that we deliver a growing Rank Group that is fit for the future," O’Reilly declared.
Rank Group - Full Year in line with lowered consensus. UK digital growth slowed in the second half. Pre-tax profit for the year was more than 40% lower. Revenue 2.2% lower at £691m. #RANK #RNK #CASINO #RESULTS
— Robert Barron, MCSI (@RobBarronInvest) August 16, 2018
The results were in line with broker Peel Hunt’s expectations. The broker rates the shares a ‘buy’ and has a 245p target price.
The shares were trading at 167.6p mid-morning, down 4.8%.