Rank Group – this week’s Finals look for increased NGR, profits, earnings and net cash, while shares at 10 times pe offer good upside, well worth a spin!

Mark Watson-Mitchell - 11.08.2026

This Thursday, 13^th August, the £486m-capitalised Rank Group (LON:RNK) will report its Final Results to end-June – and they promise to be very positive.

The Business

With a history dating back to 1937, today the Rank Group is a leading UK-based entertainment and gaming company operating casinos, bingo clubs, and online gambling platforms.

It operates both physical venues and digital platforms, providing a wide range of gaming experiences including casino table games, electronic roulette, poker, and bingo. 

Key Brands and Operations

• Grosvenor Casinos: The UK’s largest casino operator with 56 casinos, offering table games, slots, and entertainment, 

• Mecca Bingo: A well-known UK bingo brand with 96 clubs, providing live and online bingo experiences, 

• Rank Interactive: The company’s online gambling division, including digital-only brands like Yo and Enracha for the Spanish market 

• Enracha: Focused on Spain, offering bingo, slots, sports betting, and live entertainment across 10 venues,

• Rank Group integrates its digital and land-based operations on proprietary technology platforms, allowing customers to access games both in venues and online.

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Underlying Net Gaming Revenue

The NGR, which is an important indicator of the group’s top-line growth, is revenue retained from the amounts staked after paying out customer winnings and deducting customer incentives.

In the last four years the NGR has grown from £681.9m in the 2023, to £734.7m in 2024, to £795.4m in 2025, with expectations of around £834.0m for the 2026 year.

Drilling down a little further – it is indicative to note that the 2025 split of NGR showed £559.6m from Venues and £235.7m from Digital, while regionally the UK represented some £727.6m with International reporting £67.8m.

Trading Update

On Tuesday, 14^th July, the group announced a strong full-year trading update for the 12 months to end-June, with like-for-like Net Gaming Revenue growing 6% to approximately £834.1m, and underlying operating profit now expected to be at least £76.0m, exceeding the analyst consensus of £68.2m.

That performance was driven by a 12% increase in digital NGR and a 3% rise in Grosvenor venue NGR, despite increased Remote Gaming Duty.

The company also stated that it expects to record a £5.0m provision for a proposed regulatory settlement with the Gambling Commission related to historical compliance failings.

Management Comment

The recently appointed CEO Richard Harris stated that:

"Our expected profit outturn for the year reflects the progress we have made in executing our plan for growth, despite the significant cost and taxation headwinds that we have incurred during the year.

We have worked hard to mitigate the impact of the RGD increase, whilst protecting digital revenues and optimising performance in our land-based businesses.

Our UK digital business has performed well since taxes increased in April and we are continuing to see growth in our Grosvenor business as the machine performance optimisation work progresses.

Gaming machine revenue growth remains a significant opportunity for the Group.  

We have engaged constructively with the Gambling Commission to address historical compliance issues dating back to a prior year and remedial actions were substantially implemented during the first half of 2025/26.

The Group remains focussed on our ambition to deliver at least £100m operating profit in the medium term, evolving Rank's longer-term strategy and maximising shareholder value."

The Equity

There are some 466.7m shares in issue.

The larger holders include Guoline Capital Assets (56.15%), Lombard Odier Asset Management (Europe) (7.45%), Aberforth Partners (6.52%), FIL Investment Advisors (UK) (4.89%), GSL Holdings (4.09%), Threadneedle Asset Management (2.72%), Janus Henderson Investors UK (2.17%), Polar Capital (1.56%), Lombard Odier Asset Management (USA) (1.13%) and Vanguard Capital Management (1.12%).

Broker Views

There are at least four broking firms closely following the group, three of whom call the shares as a Buy, the other saying Hold.

The analyst consensus average is for a Target Price of 146p, with the Lowest at 111p and the Highest at 180p.

Deutsche Bank has the Hold, while Peel Hunt states that the shares are a Buy, with a 175p Target Price.

The company’s broker, Shore Capital Markets, headlines its latest note on the group stating that the recent Trading Update for the 2026 Finals, supports the path to a £100m profit target.

“Following the update, we raise our FY26F operating profit estimate by c£7.5m to c£76m, consistent with guidance, with EPS moving to 10.5p from 9.6p previously; we also nudge up interest by c£2m.

This implies H2 operating profit of c£36m versus c£30m last year, despite an c£11m Q4 drag from duty changes, helped by earlier-than-expected cost mitigation.”

Its analyst Greg Johnson went on to note that:

“On an 8x ex-lease EBITDA multiple, delivery of £100m operating profit could imply a value of c250p per share.

The current share price discount suggests continued market scepticism around delivery and regulatory risk; we believe that the update should support confidence in the £100m target and, over time, merit a meaningful rerating.”

His estimates for the year to end-June are for revenues of £834.0m (£795.3m), with adjusted pre-tax profits of £61.5m (£51.4m), giving earnings of 54.9p (45.5p) and paying a 3.5p (2.6p) dividend per share.

For the current year, he sees £865.3m revenue, £54.9m profit, 49.5p earnings and a 3.2p dividend.

The year to end-June 2028, Johnson estimates, could show £913.3m revenue, £67.8m profit, 11.4p earnings, and a 4.0p per share dividend.

My View

The statement out this Thursday morning should make interesting reading, while giving the basis for strong upside prospects over the next few years.

The shares, at 104p, trade at just 10 times historic earnings, which in my view is too low for such a ‘cash machine’ of a business.

I would suggest that an early move to trade the 120p/130p price range is more than possible.

(Profile 11.08.26 @ 104p set a Target Price of 125p)