Date: Thursday 29 Jan 2015
LONDON (ShareCast) - Gambling and leisure business Rank Group saw its profits before tax rise during the second half of the year ended in December.
The group's results were helped by increasing revenues in its Grosvenor Casinos and a reduction in bingo duty in its Mecca subsidiary.
Profit before tax rose to £36.3m from losses of £6.2m, driving last year's losses per share of 0.4p to turn into earning of 7.2p.
Revenues rose to £343.3 from £337m and cash and short-term deposits increased to £73.1m from £47.1m.
The company invested in its digital business, which resulted in a 16% increase in digital revenues and 75% in operation profit.
However, its Enracha's euro revenue dropped by 6% after it closed two venues which were not generating growth.
Chief executive Henry Birch said: "Rank remains in a strong financial position, possesses market-leading brands and has a clear strategy for long term growth. As a result, the board continues to look to the future with confidence."
Northland Capital analysts said the results were "encouraging" and added: "The digital business is growing fast and additional scale should have a healthy impact on profitability and cash generation going forward in our view."
Shares were up 0.06% to 166p on Thursday at 09:55.