Rank Group Grows Profits and Dividend as It Aims for £100m Amid Rising Tax Pressures

Rank Group plc (LSE:RNK) reported a solid first-half performance, with like-for-like net gaming revenue rising 6% to £419.8m and underlying like-for-like operating profit increasing 15% to £40.6m for the six months ended 31 December 2025. Growth was delivered across all divisions, with particularly strong contributions from digital channels and gaming machines.

Statutory profit was dampened by a £6.5m loss linked to a payment fraud incident in the group’s Spanish business. Despite this, Rank strengthened its balance sheet, ending the period with higher net cash and an improved return on capital employed of 15.9%. Reflecting confidence in both current trading and future prospects, the board raised the interim dividend by 54% and reiterated expectations of meeting full-year guidance, while continuing to target at least £100m in annual operating profit over the medium term.

Operationally, the group stepped up investment in gaming machines across its Grosvenor estate, continued to enhance and expand its digital platforms in the UK, Spain and Portugal, and further strengthened safer gambling measures. At the same time, management is preparing responses to mounting cost pressures, including a sharp increase in UK Remote Gaming Duty and rising labour expenses. The company also confirmed that chief executive John O’Reilly will retire, with Richard Harris stepping in as interim CEO during a period marked by strong trading momentum but a rapidly evolving UK regulatory and tax backdrop.

Overall, Rank’s outlook is supported by robust financial performance, improving returns and a reasonable valuation. These positives are tempered by weaker technical indicators and uncertainty stemming from recent UK budget changes, suggesting a more cautious near-term backdrop despite solid operational progress.

More about Rank Group plc

Rank Group plc is a UK-listed gambling operator with a portfolio that includes Grosvenor casinos, Mecca bingo halls and Enracha venues in Spain, alongside a range of UK and international digital gaming brands. The group generates net gaming revenue from both land-based venues and online platforms, with an increasing focus on gaming machines and digital channels across the UK, Spain and, more recently, Portugal.