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THE RANK ORGANISATION REPORTS 1991 ANNUAL RESULTS

 THE RANK ORGANISATION REPORTS 1991 ANNUAL RESULTS
 LONDON, Jan. 30 /PRNewswire/ -- The Rank Organisation PLC


(NASDAQ: RANKY) today issued the following preliminary announcement of results for the year ended Oct. 31, 1991.
 The main points are (in pounds sterling):
 1991 1990
 Profit before tax 250.5 million 312.1 million
 Earnings per share 38.4p 70.1p
 Dividend 31.0p 31.0p
 The Rank Organisation's profit before tax for the year ended Oct. 31, 1991 was 250.5 million pounds compared with 312.1 million pounds in the previous year.
 Earnings per share were 38.4p compared with 70.1p achieved in 1990. The principal causes of this reduction were losses from Video Distribution and Precision Industries, reduced exceptional profit, initial financing costs for Universal Studios Florida and a write-off of Advanced Corporation Tax, and the acquisition of Mecca including borrowings in 1990.
 Turnover was 2,114.2 million pounds compared with 1,333.1 million pounds and trading profit at 186.6 million pounds was 28.6 percent up on the 145.1 million pounds reported in 1990. There were exceptional costs of 1.3 million pounds against exceptional gains of 16.0 million pounds in 1990.
 Rank's share of the pre-tax results of Rank Xerox was 158.7 million pounds compared with 167.2 million pounds in 1990. The 1991 figure included exceptional property profit of 4.4 million pounds against 11.3 million pounds in 1990.
 The tax charge of 102.4 million pounds (41 percent) included an ACT write-off of 7 million pounds.
 Operations:
 Overall trading profit, including the results of Mecca on a comparable basis, increased in the second half of the year, making good some of the decline reported in the first half.
 Film and Television:
 The overall trading profit of the Division declined year-on-year. Video Distribution in the USA was badly affected by the recession, with a 8.6 million pounds increase in provisions for stocks and debtors and a necessary major reorganization resulting in a 20 million pounds loss. Precision Industries traded at a loss in poor markets throughout the world. Its operations have been reorganized to improve efficiency and to reduce their cost base for the future.
 Holidays and Hotels:
 Trading profit increased overall with HavenWarner performing particularly well as a result of efficient integration. Butlins' profit declined slightly as a result of pressure on prices. Shearings' profit increased as a consequence of improved operating efficiency and margins. Hotels' trading profit declined by some 5 million pounds.
 Recreation:
 Overall trading profit increased despite a 3 million pounds adverse effect on trading profit of higher, and largely irrecoverable, value added tax.
 Leisure:
 The division increased overall trading profit from improvements at Hard Rock, the USA dinner shows and UK restaurants and nightclubs businesses. Rank Ahnert produced losses of some 4 million pounds as a result of weak trading and provisions for debtors being increased by 8 million pounds more than last year.
 Exceptional items:
 These include redundancy and reorganization costs net of profit on disposals. The 1990 gain included a Bond redemption profit of 9.5 million pounds.
 Associates:
 Rank Xerox's turnover for the year declined by 6 percent to 2.5 billion pounds. However, excluding the reduction attributable to the sale of the South Pacific Operations to Fuji Xerox at the end of 1990, the decline was only 2 percent, mainly reflecting the adverse effect of currency movements. Profit before tax in which Rank participates was 473 million pounds against 496 million pounds in 1990.
 Universal Studios Florida in its first full year made a small contribution to pre-tax profit, notwithstanding a decline in tourist visitors to the Orlando market.
 Finance:
 Net borrowings at year-end were 960.8 million pounds (1990 - 710.2 million pounds). The increase of some 250 million pounds during the year resulted from the repayment of Auction Market Preference shares at a cost of 117 million pounds, completion payment of 59 million pounds for the acquisition of the Deluxe film laboratory and adverse translation effect of 66 million pounds on the currency debt. Net debt at year-end was 64 percent of total shareholders' funds.
 During the year the group replaced existing borrowing facilities by arranging new loans for periods of up to 17 years. The group now has available committed facilities of some 1.3 billion pounds with an average maturity of some five years.
 Net Assets:
 The three-year rolling program of professional property revaluation continued, resulting in a reduction of some 35 million pounds, taking the overall surplus to 395 million pounds as at Oct. 31, 1991. Net assets per Ordinary share decreased from 448p to 409p largely as a result of writing-off goodwill in the Deluxe acquisition and the lower property valuation.
 Dividend:
 The board has recommended a final dividend of 20.75p per ordinary share which, together with the interim dividend of 10.25p per ordinary share declared in July 1991, makes a total net distribution for the financial year ended Oct. 31, 1991 of 31.0p per share, the same as for 1990. It is proposed that the final dividend be paid on April 8, 1992 to those shareholders on the register at the close of business on March 6, 1992.
 General Comments:
 The poor economic and trading environment in 1991 resulted in a testing year for most businesses. Throughout the year the cost bases of Rank's operations have been reduced, with management focus on market competitiveness, funds conservation and cash generation. The difficulties of the year prevented the further reduction of debt, although this remains a priority in 1992.
 The integration of the continuing Mecca operations within the organization has been completed quickly and efficiently.
 In the recessionary and highly competitive conditions in the U.K. and U.S.A., Rank remained determined to improve its share of leisure markets. Sales increased by 59 percent with overall trading profit up by 29 percent, and, excluding the losses from Video Distribution and Precision Industries, overall profit margins increased. Rank's effective marketing ensured that discretionary consumer spending and, most importantly, the habit of customers using Rank's organized leisure facilities continued during a time of generally depressed earnings and declining personal net worth.
 Hopes of an early improvement in the world economy seem to have stalled at present. What can give confidence is Rank's competitive advantages in its markets, its financial strength and its management ability to get the best out of what is available. Rank is ready to take profitable advantage of any upturn in the U.K. and U.S.A. and the objective remains the resumption of earnings growth as quickly as possible.
 -0- 1/30/92
 /CONTACT: Michael Gifford, chief executive, or Nigel Turnbull, finance director of The Rank Organisation, in London: 071-706-1111/
 (RANKY) CO: Rank Organisation PLC ST: IN: LEI SU: ERN


TS -- NY019 -- 5100 01/30/92 09:18 EST
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Date:Jan 30, 1992
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