The Rank Group said it now expects income to surpass market expectations by about £20m before releasing its interim results for the six months to 31 December 2019.
Pinning the cost savings benefits from the group’s Transformation Programme, Rank said in a trading update released this morning that it anticipated underlying operating profit for the year to June 30th, 2020 to be “above current market expectations’ from £93m to £103m’ and, based on the trends observed so far, range from £105m to £115m.
The group has updated its operating profit forecasts to include the effect of IFRS16, the International Accounting Standards Board’s new International Financial Reporting Standard, intended to make the lease assets and liabilities of businesses more transparent.
The effect of IFRS16 further boosts the anticipated underlying income, driving profits up to 25 percent higher than estimated by some analysts.
The news for the group builds on a successful start to FY19/20, which has seen strong performance especially across the Grosvenor estate.
On 30 January, the Rank Group will report its interim performance for the six months up to 31 December 2019.