Rank Group Reports Strong Profit Growth and Positive Outlook in Annual Results
Why we think this is very good
The Rank Group has delivered an impressive performance with substantial profit growth and revenue increases across all segments. Underlying LFL operating profit surged by 38% to £63.7m, while statutory Group operating profit more than doubled to £67.0m. The company's cash position has strengthened significantly, with net cash pre IFRS 16 reaching £45.4m. Margins have improved, and the outlook remains positive with continued growth expected. The recent regulatory reforms in the casino sector present exciting opportunities for expansion. While there are some cost pressures, the company appears to be managing them effectively. The increased dividend further underscores management's confidence in future performance.
Key Points
- Like-for-like NGR up 11% to £795.3m
- Underlying LFL operating profit increased 38% to £63.7m
- Statutory Group operating profit of £67.0m, up from £29.4m in 2023/24
- Net cash pre IFRS 16 improved to £45.4m from £20.9m
- Double-digit revenue growth in Grosvenor (+14%) and Digital (+10%)
- Underlying LFL operating margin improved to 8.0% from 6.5%
- Final dividend of 1.95 pence per share recommended, total dividend of 2.60 pence for the year
- Positive start to new financial year with Group NGR up 9% for first 6 weeks
- Regulatory reforms allow for additional gaming machines and sports betting in casinos
- Company well-positioned to meet current expectations for 2025/26
Summary
Rank Group has delivered strong financial results for the year ended 30 June 2025. Like-for-like NGR increased by 11% to £795.3m, with all businesses showing growth. Underlying LFL operating profit rose 38% to £63.7m, reflecting the Group's operational leverage. The company saw double-digit revenue growth in Grosvenor (+14%) and Digital (+10%). The cash position improved significantly, with net cash pre IFRS 16 at £45.4m. The outlook is positive, with Group NGR up 9% for the first 6 weeks of the new financial year. Recent regulatory reforms for the casino sector present significant growth opportunities. Despite some cost pressures, the company appears well-positioned for future growth.