(Alliance News) - Mecca Bingo operator Rank Group PLC on Thursday said its full-year profit will beat market expectations, as the gambling firm reported it benefitted from a cost-saving programme.
For the year ending June 30, Rank expects underlying operating profit, before IFRS 16, to be in the range of GBP105 million and GPB115 million. This would be ahead of the consensus range of GBP93 million to GBP103 million.
IFRS 16 is an accounting rule governing the financial treatment of leases.
It would also represent a year-on-year improvement of as much as 59% from last year's operating profit of GBP72.5 million.
Rank attributed this to strong trading from its Digital unit, its International venues business and its Grosvenor casinos unit. The firm added that this was "underpinned by cost savings from the Transformation Programme".
The scheme, launched in December 2018, sought to make a spate of cost cuts. In its financial 2019 annual report, the company said the programme delivered GBP10.7 million in cost reductions during the second half of that year and added that it expected GBP9.3 million in savings during the current financial year.
FTSE 250-listed Rank will report its first-half results, for the six months to December 31, on January 30.
In October, Rank completed the acquisition of London-listed peer Stride Gaming PLC, valuing the company at GBP115.3 million.
Shares in the company were 4.9% higher at 280.00 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Rank (RNK)