Rank Group – bingo! it is time to play the machines and read the cards, ahead of the AGM Update on the 15th, shares 130p, TP 200p

Mark Watson-Mitchell - 08.10.2025

I consider that the Rank Group (LON:RNK) is a real ‘money machine’ and that its shares at the current 130p are an absolute bargain.

My last feature on them was on Thursday, 14^th August, then at 137p, since when they hit 151.80p before easing back to the current 130p on the back of profit-taking.

Next week, on Wednesday 15^th October, we will see the £610m-capitalised gaming group holding its AGM, ahead of which it will put out a Trading Update.

The anticipation of that statement could help to get the shares on the upward move again.

The Business

Over the course of more than three-quarters of a century, Rank has entertained millions of customers in Britain and around the world.

The group’s story is one of iconic brands and talented people.

Its Management considers that its purpose is to deliver exciting and entertaining experiences in safe, sustainable and rewarding environments.

It will achieve those aims through reflecting the changing needs and expectations of its customers, communities and colleagues.

Grosvenor Casinos 

The UK’s largest multi-channel casino operator with 50 venues.

The brand offers a range of casino table games, including roulette, blackjack, baccarat and poker as well as electronic roulette and gaming machines alongside bars, restaurants and broader entertainment experiences.

Mecca 

Mecca is Rank’s community gaming brand – and a household name – in the UK market.

A national portfolio of 50 venues offering bingo, gaming machines, great value food and drink and live entertainment.

Enracha

Enracha is Rank’s community gaming business for the Spanish market.

Nine venues offering a range of popular games including bingo, electronic casino and slots, sports betting, great value food and drink and live entertainment.

Digital 

The group’s digital portfolio includes its established market-leading brands, Mecca and Grosvenor for the UK market and Yo and Enracha for the Spanish market.

The business also operates nine UK digital-only brands, all delivered to the consumer on Rank’s proprietary technology platforms.

Recent Finals

The group reported that the year to end-June saw its underlying net gaming revenues growing 11% to £795.3m (£716.3m), while its pre-tax profits rose an impressive 248% to £53.9m (£15.5m).

The earnings generated came out some 54% ahead at 9.1p (5.9p) per share, while its dividend was increased by 206% to 2.60p (0.85p) per share.

Analyst View

Analyst Ivor Jones, at Peel Hunt, has recently reiterated his Buy rating, with a Target Price of 200p.

Despite the soaring share price this year, Jones is reported to believe that the stock has further to go as its transformation is now underway, with newly-permitted additional gaming machines now having gone live in some of Rank’s casino venues.

He is hopeful that the first quarter of 2026 has started well and that the group is receiving payback on its investment.

“Our base case is that additional gaming machines contribute £35m of incremental operating profit in full-year 2030, with a progression from £4m in full-year 2026, through £14m in full-year 2027, and £20m in full-year 2028.”

In My View

There is no doubt in my mind that the Rank Group is a real money machine and that its shares at 130p are undervalued; they offer massive upside.