Business correspondent(es/wp):
Rank “still has the confidence” to look at major deals despite its aborted £3.4 billion joint bid with 888 for rival William Hill, its boss said today.
“I’m still surprised that William Hill did not want to engage with us,” said Henry Birch, who would have become chief executive of the bigger group if the three-way deal had come off.
“I was extremely surprised that they did not understand the rationale of the deal. But we’ve got the confidence to look at deals like this and we will continue to look at deals, particularly the larger ones which involve digital,” he said.
But when asked if a straight two-way merger with 888, which is strong in digital gaming, was on the cards, Birch declined to comment. The bid for Hills came and went in just nine days this month. Birch (pictured) said the costs were relatively low: “The bankers were on a no-deal, no-fee basis.
“It was a short, sharp affair in terms of the number of people involved and it did not distract from getting on with our business. Just myself and a handful of people missed our summer holidays.”
He asserted that Rank can equally well go it alone. “We are halfway through a two-year programme of investing in a business which historically was underinvested,” he said. “We are in a strong financial position with market-leading brands and have a clear strategy for long-term growth.”
Rank today reported a 4% rise in headline annual pre-tax profits at £77.4 million on revenues up just 2% at £753 million.
Profits were dented by the first full year of so-called remote gaming duty, which taxes punters wherever the online operator is based to the tune of £4.8 million, and the national living wage, which added £1.4 million to Rank’s payroll.
Mecca Bingo online saw a sharp fall in profits as it bore the brunt of the new tax and suffered some “stability issues” after it switched to a new technology platform.
The casinos division Grosvenor had a disappointing final quarter of the year to end-June with customer numbers down and the win margin lower. Birch said: “The Euros and uncertainty over the referendum hit the number of customer visits but that was the case across the casino sector. In July and August customer numbers are back up again.”
Birch said the Brexit decision would have little direct impact on Rank because it is so predominantly a UK-facing business. However, it could be hit by lower economic growth and any fall in consumer confidence.
The dividend for the year is raised by 16% to 6.5p a share and they responded with a 7.5p rise to 229p, their highest for two months.
Rank “still has the confidence” to look at major deals despite its aborted £3.4 billion joint bid with 888 for rival William Hill, its boss said today.
“I’m still surprised that William Hill did not want to engage with us,” said Henry Birch, who would have become chief executive of the bigger group if the three-way deal had come off.
“I was extremely surprised that they did not understand the rationale of the deal. But we’ve got the confidence to look at deals like this and we will continue to look at deals, particularly the larger ones which involve digital,” he said.
But when asked if a straight two-way merger with 888, which is strong in digital gaming, was on the cards, Birch declined to comment. The bid for Hills came and went in just nine days this month. Birch (pictured) said the costs were relatively low: “The bankers were on a no-deal, no-fee basis.
“It was a short, sharp affair in terms of the number of people involved and it did not distract from getting on with our business. Just myself and a handful of people missed our summer holidays.”
He asserted that Rank can equally well go it alone. “We are halfway through a two-year programme of investing in a business which historically was underinvested,” he said. “We are in a strong financial position with market-leading brands and have a clear strategy for long-term growth.”
Rank today reported a 4% rise in headline annual pre-tax profits at £77.4 million on revenues up just 2% at £753 million.
Profits were dented by the first full year of so-called remote gaming duty, which taxes punters wherever the online operator is based to the tune of £4.8 million, and the national living wage, which added £1.4 million to Rank’s payroll.
Mecca Bingo online saw a sharp fall in profits as it bore the brunt of the new tax and suffered some “stability issues” after it switched to a new technology platform.
The casinos division Grosvenor had a disappointing final quarter of the year to end-June with customer numbers down and the win margin lower. Birch said: “The Euros and uncertainty over the referendum hit the number of customer visits but that was the case across the casino sector. In July and August customer numbers are back up again.”
Birch said the Brexit decision would have little direct impact on Rank because it is so predominantly a UK-facing business. However, it could be hit by lower economic growth and any fall in consumer confidence.
The dividend for the year is raised by 16% to 6.5p a share and they responded with a 7.5p rise to 229p, their highest for two months.
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