Rank Group (RNK) investor relations material

Executive summary

• Like-for-like net gaming revenue rose 11% to £795.3m, with growth across all business segments and strong cash generation.

• Underlying like-for-like operating profit increased 38% to £63.7m, with operating margin up to 8% from 6.5%.

• Return on capital employed improved by 4.2 percentage points to 14.5%.

• Final dividend per share of 1.95p, bringing the full-year dividend to 2.6p.

• Casino legislative reforms in the UK mark the most significant sector change since 1968, enabling major expansion in gaming machine capacity.

Financial highlights

• Group NGR up 11% year-over-year to £795.3m; digital revenue up 10%, with Grosvenor digital +22% and Mecca digital +11%.

• Underlying like-for-like operating profit £63.7m (+38% YoY); net free cash flow £27.7m.

• ROCE at 14.5%, up from 10.3% in the prior year.

• Capex increased to £58.5m, with targeted growth and digital investment.

• Total dividends paid amounted to £7m; net debt including lease liabilities at £130.8m.

Outlook and guidance

• Targeting operating profit of £100m+ in the medium term, with consensus estimates reaching this by FY2028.

• Digital NGR CAGR expected at 8–12% over the medium term.

• Early FY2026 trading shows 9% NGR growth in the first six weeks, supporting confidence in meeting expectations.

• Capex guidance of c.£60m per annum for the next two years to capitalize on casino reforms.

• Anticipate further margin improvement in digital from 2026/27, after a period of margin leveling due to regulatory changes.