Rank Group plc (GB:RNK)
LSE:RNK
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Rank Group plc
(LSE:RNK)
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Rating:64Neutral
Price Target:
115.00 p
▲(18.43% Upside)
Action:ReiteratedDate:01/29/26
The score is driven by solid financial performance and an attractive valuation, but is held back by weak technicals (downtrend and negative momentum) and earnings-call risks, particularly the sizeable Remote Gaming Duty impact and near-term cash/lease cost pressures.
Positive Factors
Strong free cash flow generation
Substantial FCF expansion and high cash conversion provide durable internal funding for capex, gaming-machine rollouts and working-capital needs. This reduces reliance on external financing, supports dividend capacity and gives flexibility to absorb regulatory or cyclical shocks over the medium term.
Negative Factors
40% Remote Gaming Duty shock
A material, government-driven increase in digital duty is a structural margin headwind that reduces digital profitability and cash flow. Even with mitigation plans, the tax raises industry-wide costs, can force pricing/marketing changes and may permanently lower digital operating margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Substantial FCF expansion and high cash conversion provide durable internal funding for capex, gaming-machine rollouts and working-capital needs. This reduces reliance on external financing, supports dividend capacity and gives flexibility to absorb regulatory or cyclical shocks over the medium term.
Read all positive factors
Rank Group plc (RNK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£499.35M
Dividend Yield2.58%
Average Volume (3M)598.70K
Price to Earnings (P/E)6.3
Beta (1Y)0.72
Revenue Growth8.26%
EPS Growth263.36%
CountryUK
Employees7,600
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.06
Shares Outstanding468,429,530
10 Day Avg. Volume453,058
30 Day Avg. Volume598,695
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.65
Price to Sales (P/S)0.78
P/FCF Ratio9.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£106.00Price Target Upside9.17% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)£853.38M
Rank Group plc Business Overview & Revenue Model
Company Description
The Rank Group Plc, together with its subsidiaries, provides gaming services in Great Britain, Spain, Belgium, and India. It operates through Grosvenor Venues, Mecca Venues, Digital, and International Venues segments. The company offers a range of...
How the Company Makes Money
Rank Group makes money by offering regulated gambling and entertainment products across two main channels: venues (land-based) and digital (online). In its Grosvenor Casinos business, revenue is generated from customers’ gambling spend across tabl...
Rank Group plc Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong operational and financial progress across venues, digital and international businesses — revenue and operating profit growth, successful gaming machine rollouts, digital growth, improving ROCE and employee engagement, and positive regulatory changes for bingo. However, material headwinds remain: a GBP 46m estimated hit from the 40% remote gaming duty, a GBP 6.5m Spanish payment-fraud cash impact, rising employment and lease-related costs, and near-term cash/lease pressure. Management has detailed mitigations and strategic initiatives to offset taxation effects and to capture medium-term upside (targeting at least GBP 100m operating profit), which supports a constructive outlook despite significant regulatory disruption.Positive Updates
Group revenue and profit growth
Like-for-like net gaming revenue up 6% to GBP 419.8m; underlying like-for-like operating profit rose 15% to GBP 40.6m; underlying operating profit margin improved to 9.7% from 8.9% last year.
Negative Updates
40% Remote Gaming Duty (RGD) impact on UK digital
The November budget RGD increase to 40% is estimated to hit the UK digital business by c. GBP 46m to the bottom line before mitigating actions; management expects a seismic market shift with reduced competition and material industry restructuring.
Read all updates
Q2-2026 Updates
Positive
Negative
Group revenue and profit growth
Like-for-like net gaming revenue up 6% to GBP 419.8m; underlying like-for-like operating profit rose 15% to GBP 40.6m; underlying operating profit margin improved to 9.7% from 8.9% last year.
Read all positive updates
Company Guidance
Rank guided that it remains on track to deliver at least £100m of annual operating profit in the medium term, supported by a revised FY CapEx of £50–55m (H1 CapEx £27.6m), H1 net free cash flow £3.8m and closing net cash £39.4m (net debt incl. leases £165m); the Board proposed an interim dividend of £0.01 per share and working capital is expected to be broadly neutral for the year. Key business targets include Grosvenor average weekly NGR of £9.5m and a >13.5% operating margin (500bp improvement) building on current weekly NGR £7.8m (+6%) and the rollout of 850 additional machines (~+65%), while Mecca benefits from the abolition of 10% bingo duty (annualized +£6.5m) and is expected to reach double‑digit operating profit next year. Management flagged a £46m pre-mitigation hit to UK digital from the new 40% RGD but expect most of this to be offset by marketing reductions, supplier negotiations and efficiencies by April, and noted the Portugal full launch end‑Feb (expected small single‑digit million loss this year).Rank Group plc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jun 2025 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 813.60M | 795.40M | 734.70M | 681.90M | 644.00M | 329.60M |
| Gross Profit | 352.70M | 343.30M | 308.90M | 264.30M | 242.20M | 8.60M |
| EBITDA | 97.60M | 122.40M | 80.80M | -41.70M | 153.50M | -11.60M |
| Net Income | 34.20M | 44.60M | 12.50M | -96.00M | 64.90M | -72.10M |
Balance Sheet | ||||||
| Total Assets | 818.60M | 789.50M | 732.50M | 738.40M | 856.70M | 858.10M |
| Cash, Cash Equivalents and Short-Term Investments | 69.40M | 64.00M | 56.40M | 60.00M | 95.70M | 69.60M |
| Total Debt | 396.30M | 205.70M | 197.30M | 232.70M | 259.70M | 324.00M |
| Total Liabilities | 440.00M | 410.80M | 393.50M | 408.40M | 431.60M | 496.90M |
| Stockholders Equity | 378.60M | 378.70M | 339.00M | 329.70M | 425.20M | 361.30M |
Cash Flow | ||||||
| Free Cash Flow | 77.80M | 67.40M | 66.50M | 23.40M | 113.20M | -53.80M |
| Operating Cash Flow | 124.50M | 125.90M | 113.20M | 67.50M | 153.80M | -31.60M |
| Investing Cash Flow | -57.00M | -54.70M | -47.50M | -44.50M | -32.40M | 3.00M |
| Financing Cash Flow | -66.40M | -58.20M | -59.90M | -60.10M | -94.30M | 27.60M |
Rank Group plc Technical Analysis
Positive
97.10
Price Trends
92.65
Positive
95.99
Positive
114.02
Negative
Market Momentum
2.97
Negative
74.59
Negative
87.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RNK, the sentiment is Positive. The current price of 97.1 is above the 20-day moving average (MA) of 93.44, above the 50-day MA of 92.65, and below the 200-day MA of 114.02, indicating a neutral trend. The MACD of 2.97 indicates Negative momentum. The RSI at 74.59 is Negative, neither overbought nor oversold. The STOCH value of 87.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RNK.
Rank Group plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £88.72M | 19.60 | 15.38% | ― | 21.27% | 21.93% | |
66 Neutral | £1.23B | 0.68 | 92.10% | 163.36% | ― | ― | |
64 Neutral | £499.35M | 6.26 | 9.03% | 2.58% | 8.26% | 263.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £3.74B | -7.35 | -57.07% | 2.24% | 5.14% | -7.80% | |
53 Neutral | £12.12M | -73.85 | ― | ― | ― | ― | |
41 Neutral | £150.16M | -1.51 | 74.03% | ― | 5.26% | 32.20% |
* Consumer Cyclical Sector Average
GB:RNK
Rank Group plc
107.60
24.74
29.86%
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Rank Group plc Corporate Events
Business Operations and StrategyFinancial Disclosures
Rank Group lifts profit outlook as revenue rises across venues and digital
Positive
Apr 15, 2026
Rank Group reported a 5% year-on-year rise in like-for-like net gaming revenue to £205.4m for its third quarter ended 31 March 2026, with year-to-date revenue up 6% and growth across all divisions, including Grosvenor casinos, Mecca bingo, En...
Regulatory Filings and Compliance
Rank Group Non-Executive Director Increases Stake with Share Purchase
Positive
Mar 3, 2026
The Rank Group plc disclosed that non-executive director Christian Nothhaft purchased 30,000 ordinary shares in the company on 27 February 2026 at a price of £0.98 per share on the London Stock Exchange. The director’s share purchase, n...
Business Operations and StrategyExecutive/Board Changes
Rank Group Names Former Manchester United Finance Chief as Interim CFO
Positive
Feb 17, 2026
The Rank Group plc has appointed Cliff Baty as interim Chief Financial Officer, effective 23 February 2026, with a seat on the Executive Committee. Baty brings extensive experience in strategic and financial planning, investor relations and intern...
Other
Rank Group Chair Increases Stake with Share Purchase on London Market
Positive
Feb 3, 2026
The Rank Group Plc has disclosed that its chair, John Henry Ott, purchased 19,691 ordinary shares in the company on 3 February 2026 on the London Stock Exchange’s Main Market, at a price of £0.89609 per share, bringing his total holding...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial Disclosures
Rank Group lifts profits, boosts dividend and targets £100m as tax headwinds loom
Positive
Jan 29, 2026
Rank Group reported a 6% rise in like-for-like net gaming revenue to £419.8m and a 15% increase in underlying like-for-like operating profit to £40.6m for the six months to 31 December 2025, driven by growth across all businesses and par...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.