Rank Group (RNK) H2 2014 earnings summary

Executive summary

• Gross revenue £707.7m vs £625.0m YoY; operating profit £72.4m vs £69.9m, before exceptional items. Adjusted EPS held at 12.4p.

• H2 profit was up 21% vs H1; operating profit grew 10% vs normalized FY 2012/13, excluding the prior-year Park Tower win-margin peak.

Financial highlights

• EBITDA £116.0m vs £108.8m; operating cash inflow £63.2m vs £81.5m.

• Statutory profit before tax £14.4m vs £42.7m; exceptional costs were £49.0m pre-tax vs £21.9m, while period profit was £20.2m vs £27.0m.

• Net interest payable rose to £9.0m from £5.3m; effective tax rate was 22.2%, with cash tax rate on adjusted profit at 16.7%.

Outlook and guidance

• 2014/15 capital expenditure guidance £40m–£45m; capex expected within depreciation excluding new venues and relocations.

• Current trading covered six weeks; all brands showed YoY growth in local currency, with strong online casino growth continuing.

• 2014/15 effective tax rate expected at 22%–24%; potential VAT claims awaited a Supreme Court hearing in April 2015.