The Rank Group expects to report full-year underlying operating profit of at least £76m, ahead of analyst expectations, after group net gaming revenue (NGR) increased 6% to £834.1m.
The operator’s latest trading update covers the 12 months to 30 June 2026, with company-compiled analyst consensus previously placing underlying operating profit at £68.2m.
It’s not all positive news for the business which owns Grosvenor, Enracha and Mecca, though, as it confirmed that growth was in some part due to job cuts.
“The decision to protect performance marketing and customer incentives, whilst making significant savings in above the line marketing spend, supplier costs and headcount reductions, has helped to secure strong revenue performance and robust profit delivery in Q4,” the group confirmed.
Rank Group’s Gambling Commission settlement proposal
The LSE-listed FTSE 250 constituent also expects to recognise a £5m provision relating to a proposed regulatory settlement with the Gambling Commission over historical compliance failings at Grosvenor Casinos.
It submitted a settlement proposal on 20 May, including a £5m payment in lieu of a financial penalty, one which Rank Group said the Commission is “minded to accept” the proposal, with a finalisation letter still pending.
The review concerns the operating licence held by Grosvenor Casinos Limited and relates to the period between 1 November 2024 and 1 May 2025. Remedial actions were substantially implemented during the first half of 2025/26.
Its trading update follows yesterday’s news that former Chief Financial Officer and Interim Chief Executive Officer Richard Harris was appointed CEO on a permanent basis.
Harris had been serving as Rank Group’s Interim CEO since the departure of John O’Reilly at the start of 2026, and had been CFO since May 2022.
His appointment as Permanent CEO came after an “extensive executive search process”, though he had already gained the backing of his predecessor.
On trading, Rank Group’s Grosvenor venues generated full-year like-for-like NGR of £397.3m, up 5%, while Q4 revenue increased 3% to £98.3m.
Gaming machine performance at Grosvenor improved 12% during Q4, following a 10% rise in the previous quarter.
Digital NGR rose 8% to £248.5m for the full year and 12% to £63.9m in Q4, while UK digital revenue also increased 12% during the quarter, compared with 2% growth in Q3.
Tax rises lead to retail focus
Rank Group has been implementing cost mitigation measures since the increase in Remote Gaming Duty to 40%, which took effect on 1 April 2026 after being announced in November 2025.
There may lie some opportunities for its retail arms, with its land-based Grosvenor Casinos and Mecca venues exempt from these tax hikes, though there has been somewhat of a negative outlook on the retail sector.
Despite this, SBC News has heard from multiple CEOs that there are definitely still signs of life and growth in the retail market, and Harris has confirmed this by saying that “gaming machine revenue growth remains a significant opportunity for the Group”.
This may be what has led to the company increasing its machine estate by 850 terminals – 60% – during the first half of the year.
Speaking of Rank Group’s Mecca venues, they recorded a 4% increase in full-year NGR to £143m, while its Spanish-focused operations, Enracha, saw revenue growth of 7% to £45.3m.
New CEO Harris continued: “Our expected profit outturn for the year reflects the progress we have made in executing our plan for growth, despite the significant cost and taxation headwinds that we have incurred during the year.
“We have worked hard to mitigate the impact of the RGD increase, whilst protecting digital revenues and optimising performance in our land-based businesses.
“Our UK digital business has performed well since taxes increased in April and we are continuing to see growth in our Grosvenor business as the machine performance optimisation work progresses. Gaming machine revenue growth remains a significant opportunity for the Group.
“We have engaged constructively with the Gambling Commission to address historical compliance issues dating back to a prior year and remedial actions were substantially implemented during the first half of 2025/26.
“The Group remains focussed on our ambition to deliver at least £100m operating profit in the medium term, evolving Rank’s longer term strategy and maximising shareholder value.”
Rank Group has seen its shares rise by 2.75% in the first two hours of trading on the LSE and its share price now sits at 97.10p at the time of writing.
It will publish its preliminary results for 2025/26 on 13 August.