Rank Group PLC Edison initiates coverage on Rank Group
September 15 2015 - 6:08AM
RNS Non-Regulatory
TIDMRNK
Rank Group PLC
15 September 2015
London, UK, 15 September 2015
Edison initiates coverage on Rank Group
Highlights of the analysis on Rank Group by Edison's gaming
analyst Jane Anscombe include:
Rank has been re-energised over the past year. It is a leading
UK gaming operator with its 'bricks and mortar' Grosvenor casinos
and Mecca bingo clubs, which still generate 88% of its revenues. It
has 2.7m loyal members who made 20.3m visits in FY15, yet only 5%
of them play on Rank's digital sites. In Grosvenor Casinos it is
only 2%. With more effective marketing and a better platform we
expect digital revenues to grow by 60% over the next three years as
Rank develops a fully multichannel offering. CEO Henry Birch and
the new management team delivered an excellent set of final results
in August, with adjusted PBT up 19% to GBP74m and a 24% increase in
the dividend. The underlying business is strongly cash generative,
with debt on track to be eliminated by the end of 2018 in the
absence of any acquisitions.
Rank's shares are up 60% this year but the FY16 EV/EBITDA is
still only 8.3x, below the peer group average despite the fact that
it is fully regulated and delivering good profits and dividend
growth on our estimates. The reduction in holding to 56% by the
major shareholder (Hong Leong) in February 2015 has improved
liquidity. Our sum of the parts produces a value of 290p to 360p
per share.
To download this report, please Click here.
All reports published by Edison are available to download free
of charge from its website.
www.edisoninvestmentresearch.com
About Edison: Edison, the investment intelligence firm, is the
future of investor interaction with corporates. Our team of over
100 analysts and investment professionals works with leading
companies, fund managers and investment banks worldwide to support
their capital markets activity. We provide services to more than
400 retained corporate and investor clients from our offices in
London, New York, Frankfurt, Sydney and Wellington. Edison is
authorised and regulated by the Financial Conduct Authority
(www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
Edison is not an adviser or broker-dealer and does not provide
investment advice. Edison's reports are not solicitations to buy or
sell any securities.
For more information please contact:
Jane Anscombe Edison Investment Research +44 (0)20 3077 5740
tmt@edisongroup.com
Learn more at www.edisongroup.com and connect with Edison
on:
LinkedIn www.linkedin.com/company/edison-investment-research
---------------- ------------------------------------------------------------
Twitter www.twitter.com/Edison_Inv_Res
---------------- ------------------------------------------------------------
YouTube www.youtube.com/edisonitv
---------------- ------------------------------------------------------------
London New York Sydney Frankfurt
+44 (0)20 +1 646 653 +61 (0)2 +49 (0)69
3077 5700 7026 9258 1161 78 8076 960
280 High 245 Park Level 25 Aurora Schumannstrasse
Holborn Avenue, 39th Place 34b
London, Floor 88 Philip 60325 Frankfurt
WC1V 7EE New York, Street Germany
United Kingdom NY 10167 Sydney NSW
US 2000
Australia
This information is provided by RNS
The company news service from the London Stock Exchange
END
NRASFMFSIFISESU
(END) Dow Jones Newswires
September 15, 2015 06:08 ET (10:08 GMT)
Rank (LSE:RNK)
Historical Stock Chart
From Apr 2024 to May 2024
Rank (LSE:RNK)
Historical Stock Chart
From May 2023 to May 2024