Rank : To excite and to entertain

Contents

Overview

IC Introduction 01 About us

Strategic Report

Who we are

Over the course of more than three- quarters of a century, the Group has entertained many millions of customers in Britain and around the world. The Group's story is one of iconic brands and talented people.

Our purpose

To deliver exciting and entertaining experiences in safe, sustainable and rewarding environments.

We will achieve this through reflecting the changing needs and expectations of our customers, communities and colleagues.

To excite and to entertain.

Governance Report

1. Chair's introduction to governance

1. 2018 Code Compliance Statement
2. How we are governed

1. Our Board

1. How governance supports delivery
2. • A year in review

1. Nominations Committee Report

1. Audit Committee Report

1. ESG & Safer Gambling Committee Report

1. Finance Committee Report

1. Remuneration Committee Report

1. Remuneration Policy

1. Annual Report on Remuneration

1. Directors' Report

1. Directors' Responsibilities

Financial Statements

1. Independent auditor's report

1. Group income statement
2. Group statement of comprehensive income
3. Balance sheets

1. Statements of changes in equity

1. Statements of cash flow
2. Notes to the financial statements

1. Five-yearreview

Other Information

213 Shareholder information

Overview

2022 business highlights

• Underlying operating profit1 for the full year was £40.4m, in line with guidance of £40m provided in June 2022.
• Second half performance was adversely impacted by difficult trading conditions in Grosvenor venues, particularly in London, which led to a reset of operating profit guidance for the full year.
• Underlying venues Net Gaming Revenue ('NGR')1 up 209% year-on-year in the year but down 19% on CY 20192 reflecting the continued impact of, and gradual recovery from, the pandemic.
• Underlying digital NGR1 grew 4% year-on-year supported by a 178% growth in active cross-channel customers.
• Six-foldincrease in underlying digital operating profit1 year-on-year to £18.7m as further synergies realised from the technology integration following the Stride acquisition in October 2019.
• Mecca digital business successfully migrated to the RIDE platform in
  January 2022 with the final brand,
  Grosvenor, migrating across by end of Q1 2022/23.
• Underlying venues operating profit1 included energy costs of £23.2m, up significantly on the CY 20192 cost of £13.0m. Energy costs for 2022/23 would be approximately £46m based on current market prices.
• Mecca being reshaped to return to profitability with seven venues closed in Q1 2022/23.
• The strong cash position has enabled the acceleration of the Group's Transformation 2.0 programme, which is focused on improving the customer offer and growing customer numbers, has delivered with good returns from the £6.2m Grosvenor investment into new product and £5.3m casino refurbishments.
• Progression of the Group's ESG programme continues with significant developments introduced throughout the year to further enhance customer safety including a new online markers of harm

model, a new risk model across Grosvenor casinos and the rolling out of a new machine management system in Mecca.

• Whilst the delay to the publication of the UK Government's gambling review White Paper is disappointing, we continue to build support for a programme of modest reforms for the land-based casino and bingo sectors.

Financial

• Underlying operating profit1 of £40.4m compares with a loss of £82.4m in 2020/21 which was more heavily impacted by the pandemic with venues closed at various points throughout the year.
• Group operating profit of £82.1m reflects the net receipt of £77.1m from a VAT repayment, impairment charge of £25.8m net of impairment reversal, up from a Group operating loss of £92.9m in the prior year.
• Group returned to net cash position pre-IFRS 16 of £19.1m, supported by £100.7m cash inflow from operations and £83.1m of VAT receipts.
• Bank waiver restrictions lifted and returned to standard debt covenants from 1 July 2022.

1. On a like-for-like ('LFL') basis which removes the impact of club openings, closures, acquired businesses, foreign exchange movements and discontinued operations.
2. Year-on-yearcomparisons for our venues are distorted by significant periods of closure, curfews and regional restrictions in the 2020/21 financial year. The last comparable 12-month period that was unaffected by the COVID-19 pandemic was the 12 months to 31 December 2019 ('CY 2019') which the Group uses as a comparison to performance levels.

More information

To find out the latest about our business

go to www.rank.com