Rank Group – this Thursday’s Final’s will show just how under-rated the gaming group’s shares are at 147p

11.08.2025

I now have an answer to my question of just eight months ago, when I last featured this gaming group’s shares.

On Wednesday 16^th October last year, I stated that I had been impressed by the number of recent sizeable ‘insider’ purchases at prices up to nearly 83p a share.

I took the view that the shares of the Rank Group (LON;RNK), then 86p, were headed back over the 100p level – and I concluded my article by asking the question – “is this the time to take a gamble with The Rank Group?”

The Answer

Since then, the group’s shares have been up to 164.59p, that peak being reached a week ago, since when they have drifted back to 147.60p.

Now I ask the same question – and answer it too.

Yes, now could be a very good time to get more stock aboard your growth portfolios.

Especially with the group about to announce its Finals, to end-June, this coming Thursday, 14^th August.

The Business

To briefly describe the company, it has some 112 casino and bingo venues regularly entertaining its 3.1m active customers, who also use its 80 plus digital brands covering casino, bingo, slots and sports betting.

Grosvenor Casinos is Rank’s casino-led brand that focuses on table and machine gaming, with 51 venues, it is the UK’s largest casino operator.

Mecca is the group’s very well-known bingo brand, its community-based gaming operates in 52 venues, making it the UK’s second largest bingo operation.

Over in Spain, the group has a strong presence with another community-based bingo brand, Enracha, that is currently operating through nine venues.

The group has a strong three-year programme of growth initiatives in place for each of its businesses focused on: cash maximisation in land-based bingo; recovery and growth in the Grosvenor venues business; scaling the digital business both in the UK and internationally and maximising the opportunities of the anticipated land-based legislative reforms for the UK's casino and bingo sectors.

Latest Trading Update

On Thursday, July 10^th, the group announced its Trading Update for t6he year to end-June, guiding that the group’s like-for-like Net Gaming Revenue for the year grew by 11% to some £795m.

It stated that the group now expects to report a full-year underlying like-for-like operating profit of at least £63m.

At that time CEO John O’Reilly stated that:

"We have enjoyed a very strong year of earnings growth despite the significant cost and regulatory headwinds that we have faced from the start of Q4.

The momentum experienced in the first three quarters has continued, with strong trading in Q4 resulting in our full year underlying operating profit being ahead of expectation.

We are at an exciting inflection point for the Group with the land-based casino reforms now law and coming into force from 22 July.

At that point, we will begin the process of securing licence variations from local authorities in England and Wales ahead of the rollout of additional gaming machines across the Grosvenor estate to better meet customer demand."

Analyst’s View

Greg Johnson, at Shore Capital Markets, believes that the group’s shares could double from around the current price.

His 2025-year estimates are for revenues of £794.7m (£734.7m), while its adjusted pre-tax profits could have jumped impressively from £33.5m to £52.6m, hiking its earnings up nearly 60% to 9.2p (5.8p), amply covering a 2.3p (0.9p) per share dividend.

For the year now underway he is going for another revenue rise, to £839.3m, raising profits to £57.1m, with earnings of 9.8p and a 2.7p dividend.

Another big leap is forecast by Johnson in the year to end-June 2027 when he estimates revenues of £893.8m, producing £74.1m of profits, generating 12.5p of earnings and paying out a 3.8p dividend per share.

In My View

This group has had its ups and downs – but my goodness it really is a ‘money machine’ and its shares offer massive upside at the current 147.60p – up to trade the 175p to 200p range looks more than possible to me.