Rank Group (LSE:RNK) delivered another year of revenue and underlying profit growth in the 12 months to 30 June 2026, supported by improved trading across its businesses and strong returns from recent investment in gaming machines.
Like-for-like net gaming revenue increased 6% to £834.1 million, marking a fifth consecutive year in which all of the group’s businesses recorded growth. Underlying operating profit climbed 21% to £78.6 million, while the operating margin improved to 9.4%.
Return on capital employed also strengthened to 18.3%, helping support a 35% increase in the total dividend. Statutory profitability was less robust, however, reflecting separately disclosed costs including a payment fraud incident in Spain and expenses associated with a UK regulatory settlement.
Digital Revenue Rises Despite Higher Gaming Duty
Rank achieved growth across both its physical venues and digital operations despite facing cost inflation, increased taxation and a more demanding regulatory environment.
Digital revenue advanced 8% over the year, with like-for-like growth accelerating to 12% during the fourth quarter. The performance came as Rank reduced above-the-line marketing expenditure to help mitigate the financial impact of the increase in Remote Gaming Duty to 40%.
The group also continued to reshape its physical estate, closing nine underperforming Mecca venues as it focused investment on locations offering stronger prospective returns.
Rank Targets £100 Million in Medium-Term Operating Profit
Rank strengthened its financing position during the year by securing a new four-year £120 million revolving credit facility. At the year end, the group held net cash of £56.8 million before IFRS 16 adjustments, while reported net debt stood at £147.2 million.
Management maintained its medium-term ambition of generating at least £100 million in underlying operating profit, supported by further operational improvements and investment across its venue and digital businesses.
However, the company remains cautious about additional tax increases affecting land-based gaming. Rank has warned that further increases in the tax burden on highly regulated bingo halls and casinos could make some venues economically unviable, potentially leading to closures and ultimately reducing tax receipts generated by the sector.
Tax and Technical Risks Temper Outlook
Rank’s broader outlook is supported by solid financial performance and relatively attractive valuation metrics. Higher underlying earnings, improving margins and stronger returns on invested capital provide evidence of progress across the business.
These positives are balanced by weaker technical indicators, with the shares showing a broader downtrend and negative momentum. The higher Remote Gaming Duty rate also represents a significant earnings headwind, while near-term cash requirements and lease-related costs could place additional pressure on financial performance.
Continued digital growth and progress towards the £100 million underlying operating profit target will therefore be important measures of Rank’s ability to absorb the impact of higher taxation and regulatory costs.
More About Rank Group plc
The Rank Group Plc is a UK-listed gambling and entertainment company operating across both physical venues and digital gaming platforms.
Its businesses include Grosvenor casinos and Mecca bingo clubs in the UK, Enracha venues in Spain and a portfolio of online gaming brands. Rank serves customers through gaming machines, live table games, bingo and digital platforms, with its operations concentrated in regulated gambling markets.
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