Rank Group PLC (LON: RNK) closed the day 0.50% lower with shares trading at 159.60.
Having announced first quarter results broadly in line with market expectations earlier this month, Rank Group PLC (LON: RNK) stock has fluctuated from a 1st May low of 156.40, to today’s (7th May) high of 163.60.
Revenues at the Mecca Bingo owner increased just 1% in the first three months of the year, led by a 2% rise in digital revenues. Sales at Mecca Bingo halls declined 1%. However, revenues from Mecca Bingo online soared 10% in Q1.
The Rank Group PLC (LON:RNK) boasts a ROIC Quality Score of 6.485373, far higher the average publicly listed company. The ROIC is a reliable profitability ratio indicator that measures the return that an investment generates for those providing capital. Essentially, a tool that shows exactly how efficient a company is at turning capital into profits. Currently, the Berkshire based bingo operator has a Gross Margin (Marx) ratio of 0.419157., making it an attractive proposition for investors.
Chief financial officer Bill Floydd joining the board of directors with immediate effect following Non-Executive Chairman Ian Burke’s surprise resignation on the same day but separately as the release of the Q1 results.
Having joined the bingo and casino operating giant in 2006 as chief executive officer, Ian Burke served as chairman since 2011. During that time Rank Group’s stock has seen an 8th January 2016 high of 295.50 and more recently, a low of 137.80, hit on the 7th December 2018.
Investors Positive on Rank Group Plc (LON: RNK)
Founded in 1995, Rank Group posted £35.9 million net income from £691.0 million revenues in 2018. It employs nearly 10,000 people in 152 locations spread across the UK, Spain and Belgium. As well as being the UK’s largest bingo operator with Mecca Bingo, the Rank Group’s 52 Grosvenor Casino locations also make it the UK’s largest casino operator.
Currently, Rank Group (LON: RNK) shares are regarded as a HOLD by Shore Capital and a BUY by Peel Hunt.
