Rank Group Final Results: Underlying Profit Rises 21% as Dividend Jumps 35%

Rank Group PLC has reported another year of revenue growth, improved underlying profitability and a higher dividend, supported by stronger trading across its casinos, bingo venues and digital operations.

The headline figures are encouraging. Underlying operating profit increased 21% to £78.6 million, while the underlying operating margin climbed from 8.1% to 9.4%. That suggests Rank converted its revenue growth into profit more efficiently despite cost inflation, higher taxation and regulatory pressures.

However, there is an important split between the underlying and statutory results. Reported operating profit fell 7% to £55.7 million, largely because of £22.9 million of separately disclosed items. Investors therefore need to look at both versions of the numbers rather than relying solely on the adjusted performance.

The figures cover the 12 months ended 30 June 2026. Investors can read the original company announcement for the complete financial statements and accompanying notes.

Rank Group's key financial results

Metric	2025/26	2024/25	Change
Underlying like-for-like net gaming revenue	£834.1 million	£788.4 million	6%
Underlying operating profit	£78.6 million	£64.8 million	21%
Underlying operating margin	9.4%	8.1%	1.3 percentage points
Statutory operating profit	£55.7 million	£60.1 million	-7%
Profit before tax	£39.2 million	£45.9 million	-15%
Underlying earnings per share	10.5p	9.1p	15%
Basic earnings per share	6.4p	8.2p	-22%
Net free cash flow	£25.5 million	£27.7 million	-8%
Dividend per share	3.50p	2.60p	35%
Return on capital employed	18.3%	15.1%	3.2 percentage points

Net gaming revenue, or NGR, is gaming revenue after deducting customer incentives. Like-for-like figures remove factors such as venue openings, closures, foreign exchange movements and new markets, providing a clearer comparison with the previous year.

Strong underlying growth, but statutory profit moved backwards

Rank's underlying performance was broad-based, with every business delivering revenue growth for a fifth consecutive year. Group like-for-like NGR rose 6%, while underlying earnings per share increased 15% to 10.5p.

The improvement in margin is particularly relevant. Rank has a sizeable base of fixed and semi-fixed venue costs, so additional revenue can produce faster profit growth once those costs are covered. This operational leverage helped underlying operating profit rise much faster than revenue.

Statutory earnings tell a less comfortable story. Separately disclosed items totalled £22.9 million and included:

• A £6.5 million loss related to payment fraud in the Spanish business.
• A £5.0 million provision for a proposed Gambling Commission settlement.
• £6.7 million of costs mainly connected with closing nine Mecca venues.
• A net £1.0 million impairment charge.
• £3.7 million of restructuring and other costs.

These charges reduced statutory operating profit to £55.7 million and profit after tax to £29.9 million. Basic earnings per share consequently fell 22% to 6.4p.

Some of these costs are described as one-off items, but regulatory settlements, restructuring and venue closures still consume real cash. Rank also expects further cash outflows connected with the 2025/26 items during 2026/27.

Grosvenor machines and Mecca recovery drive venue growth

Grosvenor Venues increased like-for-like NGR by 5% to £397.3 million, with underlying operating profit rising 11% to £35.5 million. Customer visits increased 2%, while spending per visit rose 3%.

Gaming machines were the standout product, with revenue up 11%. Rank installed 850 additional machines during the year and believes machine optimisation offers a significant further opportunity. Average weekly gaming machine NGR reached £2.2 million, with management targeting at least £3 million in the medium term.

Table gaming revenue was flat, partly due to the impact of conflict in the Middle East during the second half. This demonstrates that Grosvenor can still be sensitive to international customer activity, particularly within higher-value segments.

Mecca Venues delivered a notable recovery. Like-for-like NGR rose 4% to £143.0 million, while underlying operating profit more than doubled from £4.3 million to £8.9 million.

The estate was reduced from 50 to 41 clubs after nine commercially unviable locations closed. Visitor numbers fell 2%, but spending per visit increased 6%. Mainstage bingo revenue grew 12%, and gaming machine NGR increased 6%.

The abolition of UK bingo duty provided a £1.6 million benefit during the final quarter. Rank expects an annualised benefit of approximately £6.4 million in 2026/27 and believes Mecca is on track to produce double-digit operating profit in that year.

Enracha, Rank's Spanish venue business, also performed well. Like-for-like NGR increased 7% to £45.3 million, while underlying operating profit rose 8% to a record £12.0 million.

Digital growth faces a much heavier tax bill

Digital like-for-like NGR increased 8% to £248.5 million, with underlying operating profit also rising 8% to £37.9 million. Fourth-quarter revenue growth accelerated to 12%, helped by platform improvements and more targeted marketing.

The difficult part is taxation. UK Remote Gaming Duty increased from 21% to 40% on 1 April 2026. Rank responded by reducing above-the-line advertising, supplier costs and headcount while maintaining customer incentives and modestly increasing performance marketing.

Management says digital profitability will inevitably decline in 2026/27 as the full-year effect of the 40% duty rate comes through. This is arguably the clearest near-term headwind in the results. Revenue momentum is good, but a much larger share of UK digital economics will now go to the Government.

Cash, debt and the higher dividend

Net free cash flow slipped 8% to £25.5 million despite higher underlying profit. Lower capital expenditure helped, but this was offset by cash outflows relating to separately disclosed items.

Rank ended the year with net cash of £56.8 million before IFRS 16 lease liabilities. Including £204.0 million of lease liabilities, reported net debt was £147.2 million, down from £154.7 million.

The company completed refinancing in June, replacing its previous borrowing arrangements with a new four-year £120 million revolving credit facility on improved commercial terms. Planned capital expenditure is expected to moderate to approximately £40 million in 2026/27, which should support underlying cash generation.

The Board has proposed a 2.50p final dividend, taking the full-year payment to 3.50p per share, up 35%. Subject to shareholder approval, the final dividend is due to be paid on 23 October 2026 to shareholders on the register on 18 September 2026.

What investors should watch next

Current trading provides a positive starting point. Group NGR increased 8% during the first six weeks of the new financial year, including 10% digital growth and a 15% rise in Grosvenor gaming machine revenue.

Rank has reiterated its ambition to generate at least £100 million of underlying operating profit in the medium term. Reaching that level would require further progress from Grosvenor machines, Mecca's streamlined estate and digital scale, alongside continued cost discipline.

The main risks are equally visible. Digital tax has nearly doubled, further gaming duty increases remain possible, regulatory compliance is under scrutiny and the group expects more exceptional cash outflows. The prior-year accounts were also restated for historical lease accounting errors, although there was no cash impact.

Overall, the underlying business is moving in the right direction, with stronger margins, improved returns on capital and broad revenue growth. The test for 2026/27 is whether that momentum can outweigh the annualised digital tax increase and turn better trading into stronger statutory earnings and cash flow.