Rank Group PLC Edison issues update on Rank Group (RNK)
August 25 2016 - 4:24AM
RNS Non-Regulatory
TIDMRNK
Rank Group PLC
25 August 2016
London, UK, 25 August 2016
Edison issues update on Rank Group (RNK)
A weak Q416 left final results a tad below our forecasts despite
good results in Mecca venues and Grosvenor digital. However, cash
generation was strong and the dividend was lifted by 16%. The
organic growth strategy (focusing on multi-channel development)
remains intact and while the failure to progress what would have
been a transformational acquisition of William Hill (with 888) was
a disappointment, it demonstrates the scale of management's
ambitions. We suspect that future accretive opportunities will
arise within the consolidating online gambling space.
Rank's shares have fallen from a 2016 peak of 295.5p (on 8
January) weighed by concerns over UK consumer spending,
disappointment over Mecca's digital migration issues and
uncertainty around the William Hill situation. However, the rating
now looks too low, with annualised 2016e EV/EBITDA only 6.9x versus
11.9x for the peer group, suggesting good upside potential. We are
hopeful of a positive Q117 IMS in mid October, which would be a
positive catalyst
Click here to view the full report.
All reports published by Edison are available to download free
of charge from its website www.edisoninvestmentresearch.com.
About Edison: Edison is an international equity research firm
with a team of over 110 analysts, investment and roadshow
professionals and works with both large and smaller capitalised
companies, blue chip institutional investors, wealth managers,
private equity and corporate finance houses to support their
capital markets activity. Edison provides services to more than 420
retained corporate and investor clients from offices in London, New
York, Frankfurt, Sydney and Wellington. Edison is authorised and
regulated by the Financial Conduct Authority.
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
Katherine Thompson Edison Investment Research +44 (0)20 3077 5730 gaming@edisongroup.com
Contact details: 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
--------- ----------------------------------------------------
Google+ https://plus.google.com/105425025202328783163/posts
--------- ----------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
NRALIFFTTLIEFIR
(END) Dow Jones Newswires
August 25, 2016 04:24 ET (08:24 GMT)
Rank (LSE:RNK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rank (LSE:RNK)
Historical Stock Chart
From Apr 2023 to Apr 2024