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Rank Group plc
(LSE:RNK)
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Rating:65Neutral
Price Target:
95.00 p
▼(-12.52% Downside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by improving but still uneven financial performance (thin margins and a 2026 dip in earnings/FCF despite positive cash generation) and a constructive earnings outlook tempered by a sizeable Remote Gaming Duty headwind. Valuation is supportive (P/E ~14 and ~4% yield), while technicals remain mixed with negative MACD and longer-term trend still below key moving averages.
Positive Factors
Revenue and profit growth
Revenue growth across all businesses, combined with faster operating-profit growth and margin expansion, indicates improving commercial execution. If sustained, this operating leverage can strengthen earnings capacity and support investment in venues, digital products, and customer experience over the next several quarters.
Negative Factors
Remote Gaming Duty headwind
The higher 40% Remote Gaming Duty creates a structural reduction in digital economics rather than a temporary trading issue. Management expects to offset much of the impact, but the remaining profit drag could constrain digital margins, reduce cash generation, and slow progress toward the operating-profit ambition.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profit growth
Revenue growth across all businesses, combined with faster operating-profit growth and margin expansion, indicates improving commercial execution. If sustained, this operating leverage can strengthen earnings capacity and support investment in venues, digital products, and customer experience over the next several quarters.
Read all positive factors
Rank Group plc (RNK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£412.69M
Dividend Yield3.97%
Average Volume (3M)1.28M
Price to Earnings (P/E)14.0
Beta (1Y)0.73
Revenue Growth4.98%
EPS Growth-32.77%
CountryUK
Employees7,700
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.06
Shares Outstanding468,429,530
10 Day Avg. Volume1,449,017
30 Day Avg. Volume1,282,332
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)1.17
Price to Sales (P/S)0.54
P/FCF Ratio6.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£119.00Price Target Upside9.58% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.09
Revenue Forecast (FY)£879.41M
Rank Group plc Business Overview & Revenue Model
Company Description
Established in 1937 and headquartered in Maidenhead, United Kingdom, The Rank Group Plc, a subsidiary of Guoco Group Limited, delivers a broad spectrum of gaming services. Its operations span Great Britain, Spain, Belgium, and India, organized int...
How the Company Makes Money
Rank Group plc generates revenue primarily from gambling stakes and gaming spend across its venues and online platforms. In its Grosvenor Casinos segment, it earns money from customer wagering on casino table games (with revenue reflecting the cas...
Rank Group plc Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
Overall the call presented a predominantly positive operational and financial picture: revenue and operating profit grew (NGR +6%, operating profit +21%), margins expanded, digital and machine-led venue growth showed strong momentum, and management outlined clear strategic initiatives (estate segmentation, smaller-format casinos, international expansion). However, material headwinds remain — chiefly the 40% Remote Gaming Duty which resets digital profitability, one-off restructuring/exceptional costs (venue closures and regulatory items), wage inflation and regulatory uncertainty around Machine Gaming Duty. Management communicated credible mitigation actions, a disciplined capital plan (FY27 CapEx ~GBP 40m), refinancing success and a path toward the GBP 100m operating profit ambition, which leads to a net positive outlook despite the near-term taxation and restructuring challenges.Positive Updates
Revenue Growth
Like-for-like net gaming revenue up 6% to GBP 834m for the year, with growth across all businesses.
Negative Updates
Remote Gaming Duty (RGD) Headwind
RGD increase to 40% resulted in an initial quarter impact of GBP 10.1m. Management estimates an additional RGD hit of c. GBP 35m for next year, of which they expect to mitigate around GBP 20m, leaving roughly a GBP 15m reduction in profitability if assumptions hold.
Read all updates
Q4-2026 Updates
Positive
Negative
Revenue Growth
Like-for-like net gaming revenue up 6% to GBP 834m for the year, with growth across all businesses.
Read all positive updates
Company Guidance
Management guided that FY26 delivered like‑for‑like net gaming revenue +6% to £834m, operating profit £78.6m (+21% from £64.8m) and an operating margin rising to 9.4% (from 8.1%), with ROCE up from 4% three years ago to >18%; FY26 CapEx was £50.2m (FY25 £58.5m) with FY27 CapEx guided at c.£40m, net free cash flow £25.5m, lease payments £48.3m, interest & tax £8.6m, working capital inflow £4.6m, year‑end net cash £56.8m (accounting net debt £147.2m including IFRS16 £204m) and a new 4‑year £120m RCF; digital revenue grew 8% for the year and 12% in Q4 (current trading digital +10%), but Remote Gaming Duty to 40% cost c.£10.1m in FY26 and is expected to add ~£35m in FY27 (management expects to mitigate ~£20m, leaving ~£15m of profit headwind); venue actions included adding ~850 machines (+65%) with capacity for ~650 more (additional 650 ≈ £25–27m CapEx), slots ≈44% of group revenue, electronic terminals ≈16% of Grosvenor revenue and tablet play ≈80% of Mecca bingo revenue; the board proposed a final dividend 2.5p (total 3.5p, ~35% YoY increase, ~33% payout ratio) and reiterated a medium‑term ambition to deliver at least £100m operating profit.Rank Group plc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
60
Neutral
Cash Flow
67
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 835.00M | 795.40M | 734.70M | 681.90M | 644.00M |
| Gross Profit | 359.20M | 343.30M | 308.90M | 264.30M | 242.20M |
| EBITDA | 138.30M | 122.40M | 80.80M | -41.70M | 153.50M |
| Net Income | 29.90M | 44.60M | 12.50M | -96.00M | 64.90M |
Balance Sheet | |||||
| Total Assets | 833.80M | 789.50M | 732.50M | 738.40M | 856.70M |
| Cash, Cash Equivalents and Short-Term Investments | 86.80M | 64.00M | 56.40M | 60.00M | 95.70M |
| Total Debt | 234.00M | 205.70M | 197.30M | 232.70M | 259.70M |
| Total Liabilities | 449.10M | 410.80M | 393.50M | 408.40M | 431.60M |
| Stockholders Equity | 384.70M | 378.70M | 339.00M | 329.70M | 425.20M |
Cash Flow | |||||
| Free Cash Flow | 71.10M | 67.40M | 66.50M | 23.40M | 113.20M |
| Operating Cash Flow | 111.80M | 125.90M | 113.20M | 67.50M | 153.80M |
| Investing Cash Flow | -48.40M | -54.70M | -47.50M | -44.50M | -32.40M |
| Financing Cash Flow | -52.00M | -58.20M | -59.90M | -60.10M | -94.30M |
Rank Group plc Technical Analysis
Neutral
108.60
Price Trends
84.81
Negative
90.29
Negative
91.09
Negative
Market Momentum
-0.96
Negative
51.66
Neutral
57.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RNK, the sentiment is Neutral. The current price of 108.6 is above the 20-day moving average (MA) of 75.03, above the 50-day MA of 84.81, and above the 200-day MA of 91.09, indicating a neutral trend. The MACD of -0.96 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | £82.43M | 15.63 | 15.29% | ― | >-0.01% | -27.70% | |
65 Neutral | £412.69M | 14.03 | 7.83% | 3.97% | 4.98% | -32.77% | |
63 Neutral | £1.02B | 215.54 | -1.45% | 151.49% | ― | ― | |
62 Neutral | £18.29M | 55.10 | 5.46% | 0.37% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | £3.00B | -5.18 | -68.47% | 4.28% | 0.26% | -13.90% | |
51 Neutral | £200.09M | -0.36 | 76.91% | 0.04% | 0.07% | -388.74% |
* Consumer Cyclical Sector Average
GB:RNK
Rank Group plc
88.10
-28.00
-24.11%
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Rank Group plc Corporate Events
Business Operations and StrategyFinancial Disclosures
Rank Group posts Q1 revenue growth but warns on UK tax risks
Positive
Oct 15, 2026
Rank Group reported a 5% year-on-year rise in like-for-like Net Gaming Revenue to £216.1m for the quarter ended 30 September 2026, with digital revenue up 6% and venues up 5%. Growth was driven by strong UK digital performance, notably the Me...
Executive/Board ChangesDividendsRegulatory Filings and ComplianceShareholder Meetings
Rank Group wins strong shareholder backing at 2026 AGM and confirms dividend
Positive
Oct 8, 2026
Rank Group plc reported that all resolutions at its 2026 annual general meeting were approved by shareholders via poll, with one special resolution and the remainder ordinary resolutions, reflecting broad backing for the company’s governance...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Rank Group Confirms £5m Gambling Commission Settlement With No Further Profit Hit
Positive
Oct 7, 2026
The Rank Group Plc has confirmed the conclusion of a Gambling Commission review into historical failings in its Grosvenor venues business, resulting in a £5.0m regulatory settlement. The settlement matches the provision previously booked in R...
Executive/Board ChangesRegulatory Filings and Compliance
Rank Group executives sell vested LTIP shares to cover tax obligations
Neutral
Sep 30, 2026
The Rank Group has disclosed a series of share transactions involving its senior executives following the partial vesting of awards under the company’s 2020 Long-Term Incentive Plan. Awards granted in September 2023 vested at 64.5%, leading ...
Regulatory Filings and Compliance
Rank Group directors raise personal stakes with share purchases
Positive
Sep 29, 2026
The Rank Group plc has disclosed that senior board members have increased their personal shareholdings in the company. Chair John Ott purchased 13,151 ordinary shares on 28 September, taking his beneficial interest to 32,842 shares, while non-exec...
Business Operations and StrategyExecutive/Board Changes
Rank Group grants long-term share awards to senior executives
Positive
Sep 23, 2026
The Rank Group plc has granted conditional share awards to several senior executives under its 2020 Long-Term Incentive Plan, using an average reference price of 85.88 pence per share. Recipients include the chief executive, divisional managing di...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Rank Group Publishes 2026 Annual Report and Sets October AGM Date
Neutral
Sep 8, 2026
The Rank Group Plc, a U.K.-listed leisure and gaming company trading under the ticker RNK, has reaffirmed its commitment to governance and transparent communication with investors through the publication of key shareholder documents. Operating wit...
Regulatory Filings and Compliance
Rank Group Corrects PDMR Share Awards Under Long-Term Incentive Plan
Neutral
Aug 19, 2026
The Rank Group Plc has issued an amendment to its September 2025 disclosure on share dealings by persons discharging managerial responsibilities under its Long Term Incentive Plan. The correction updates the number of net vested shares received by...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Rank Group lifts underlying profits and dividend amid tax and regulatory pressures
Positive
Aug 13, 2026
Rank Group reported like-for-like net gaming revenue of £834.1m for the year to 30 June 2026, up 6% with all businesses growing for a fifth consecutive year and strong gaming machine performance driving returns on recent capital investment. U...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rank Group reshapes board roles as Lucinda Charles-Jones plans October exit
Neutral
Aug 13, 2026
The Rank Group Plc has announced that Non-Executive Director and Remuneration Committee Chair Lucinda Charles-Jones will not seek re-election at the October AGM and will leave the board on 8 October 2026. Her tenure since 2022 coincided with impro...
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.