Hong Kong-listed Guoco Group’s London-listed subsidiary, The Rank Group Plc (‘Rank’), reported solid earnings momentum for the 12 months ended 30 June 2026.
Revenue and Profitability • Group like-for-like (LFL) Net Gaming Revenue (NGR) rose 6 % year on year to £834.10 million, marking a fifth consecutive year of growth. • Underlying operating profit advanced 21 % to £78.60 million, lifting the underlying operating margin to 9.4 % from 8.1 %. • Statutory operating profit declined 7 % to £55.70 million after £22.90 million of separately disclosed items, including a £6.50 million Spanish payment-fraud loss and a £5.00 million regulatory-settlement provision. • Profit before tax slipped 15 % to £39.20 million, while profit after tax decreased 23 % to £29.90 million. • Underlying earnings per share increased 15 % to 10.5 pence; basic EPS fell 22 % to 6.4 pence on an unadjusted basis.
Segment Performance • Venues NGR: £585.60 million, up 5 %. – Grosvenor casinos LFL NGR +5 % to £397.30 million; operating profit +11 % to £35.50 million. – Mecca bingo clubs LFL NGR +4 % to £143.00 million; operating profit more than doubled to £8.90 million despite nine venue closures. – Enracha (Spain) LFL NGR +7 % to £45.30 million; operating profit +8 % to £12.00 million. • Digital NGR grew 8 % LFL to £248.50 million; underlying operating profit +8 % to £37.90 million. Actions to offset April 2026’s Remote Gaming Duty increase to 40 % included lower above-the-line marketing and cost efficiencies.
Cash Flow and Balance Sheet • Net cash (pre-IFRS 16) strengthened 25 % to £56.80 million; IFRS 16 net debt reduced 5 % to £147.20 million. • Net free cash flow totalled £25.50 million (-8 % year on year) after £50.20 million of capital expenditure, down 14 %. • In June 2026 Rank refinanced with a new four-year £120 million revolving credit facility on improved terms. • Return on Capital Employed improved to 18.3 % from 15.1 %.
Capital Allocation • The Board proposes a final dividend of 2.50 pence, bringing the full-year dividend to 3.50 pence—an increase of 35 %. • Management reiterated its medium-term target of at least £100 million in underlying operating profit.
Operational Highlights • Deployment of 850 additional gaming machines across 37 Grosvenor casinos drove gaming-machine NGR growth of 11 %. • Average weekly NGR at Grosvenor rose to £7.60 million; management targets £9.50 million medium-term. • Mecca continued its estate rationalisation, closing nine low-return venues and investing in machine areas and signage. • Digital division posted 12 % LFL revenue growth in Q4, supported by new apps, enhanced customer segmentation and the launch of YoBingo in Portugal. • Employee engagement scored 8.2, in the sector’s top-quartile benchmark.
Outlook and Current Trading In the first six weeks of FY 2026/27, Group NGR increased 8 % year on year, with digital up 10 % and Grosvenor gaming-machine revenue up 15 %. Management cautions that UK digital profitability will moderate in FY 2026/27 due to the full-year impact of the higher Remote Gaming Duty but maintains confidence in achieving its £100 million profit ambition.
Risk and Regulation Rank remains exposed to rising UK gaming taxes, potential increases in Machine Games Duty and evolving regulatory requirements, including forthcoming Financial Risk Assessments. The Group paid £225.90 million in taxes and duties during FY 2025/26.
Leadership and Governance Richard Harris, interim CEO since January 2026, was confirmed as permanent CEO in July 2026. Cliff Baty has been appointed interim CFO. Board changes include the appointments of John Ott as Chair and forthcoming committee leadership transitions.