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Meanwhile, UK-quoted Rank Group, which owns Grosvenor casinos and Mecca bingo halls, returned to profit for the full-year in August. The company posted pre-tax profits of £74 million for 2022, after making losses of £107.3 million last year. Underlying net gaming revenue increased by 108% in 2022 to £644 million but was still down 19% on 2019 as recovery from the pandemic continued.
At 85p, the shares are down 53% in the past year and trade on a price earnings ratio of just six. However, it isn’t all plane sailing now, unfortunately, as even the company’s high rollers are feeling the effect of the cost of living squeeze.
Trading has turned soft in the second half and the company is seeing lower footfall in its nine London casinos, despite the return of overseas tourists. What’s more, trading conditions are likely to remain difficult for the next year due to high inflation and the spike in UK energy prices. Rank says its energy bills alone are estimated to be £46 million this year. Nevertheless, with the shares trading at five-year lows, they are worth watching and could be a recovery play.
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