Rank Group finance chief departs

Rank Group CFO Bill Floydd has tendered his resignation after less than three years in the role. Floydd, who joined Rank in November 2018, will exit the operator at the end of 2021 and move in to the CFO position at Watches of Switzerland Group PLC. Rank will shortly commence a search for Floydd’s successor. Rank Group CEO John O’Reilly paid tribute Floydd’s contribution as CFO, saying: “Bill has been an excellent CFO since joining Rank shortly after I joined in 2018 and I will be sad to see him go. “He has helped secure the group’s liquidity and future through the pandemic and will leave Rank in excellent financial shape. “I wish Bill all the very best with his next venture and look forward to securing his replacement over the coming months,” he added. Rank Group has endured a difficult 18 months financially, with the Covid-19 pandemic forcing the closure of the firm’s venues business, which makes up majority of overall revenue. In its 2020-21 financial results, the operator confirmed a 50% year-on-year decline in net gaming revenue (NGR) to £282.2m, punctuated by a 65% decline in land-based casino revenue to £151.9m. Under Floydd’s tenure, the firm embarked on a number of mitigating actions to stem the mounting losses, including the sale of its Belgian casino business to Kindred Group for £25m and the undertaking of a £70m capital raising exercise and £25m revolving credit facility. Reflecting on the period, Floydd said he had “thoroughly enjoyed” his time with Rank but that the time had come to pursue new opportunities elsewhere. “While the last 18 months have been an extraordinary period for everyone, I am confident that Rank will go from strength to strength now that it is back open for business and John and the team continue to deliver on the group’s transformation programme,” added Floydd. Elsewhere, Rank received an additional boost when HMRC revealed it would not appeal a UK First-tier Tax Tribunal ruling over VAT paid on slot machine income between April 2006 and January 2013. In June, the tribunal ruled in favour of Rank in respect of the case, granting HMRC 56 days to appeal, which has since elapsed. In light of this, the tribunal has agreed a 60-day extension to allow HMRC and Rank to agree payment terms for the amount, expected to be in the region of £80m. Reacting to the cash boost, Peel Hunt analyst Ivor Jones highlighted the positives for Rank as it emerges from the pandemic before reiterating his Buy recommendation for shares in the firm. “This is excellent news on simple valuation grounds,” Jones explained. “It also removes any residual pressure on Rank’s balance sheet (Rank had £50m of net debt on an IFRS 16 basis at 30 June) and puts management back in a position where it can plan for the long term in terms of investment,” he added. Rank Group shares were down 1.56% in early trading on the London Stock Exchange at £177.20p.