revenue growth
8–12 pct
FY 2025
management framework
THE RANK GROUP PLC
Last · LSE£0.724+0.018 (+2.55%)stale · yahoo · 53h ago
Market cap£337.1M465.6M sh
P/E · TTM12.1fwd 6.4 · eps 0.06
Beta1.65vs S&P 500
Div yield0.05%annual · TTM
52w range
£0.684£1.35
Volume444.2Ksession
| Revenue | £795.4M |
|---|---|
| Operating income | £67.0M |
| Net income | £44.6M |
| Free cash flow | £79.3M |
| Operating margin | 8.4% |
| Net margin | 5.6% |
| Return on equity | 11.8% |
| Period | 2025 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Improving operations are offset by heavy investment, cost inflation and regulatory uncertainty.
Hold: FY24 showed meaningful recovery, with like-for-like NGR up 9% to £734.4m, operating profit rising to £46.5m, digital NGR up 12% and net cash of £20.9m.
The thesis is improving execution across Grosvenor, Mecca and proprietary digital technology, but FY25 is expected to be cash-flow neutral despite £60m of CapEx, while 7% employment-cost inflation, uncertain Gambling Act timing and potentially higher lease-adjusted debt limit near-term upside.
Themes
- Fy24 Recovery
- Grosvenor Casinos
- Mecca Bingo
- Digital Growth
- Gambling Act Review
- Capex And Cash Flow
Near term
The first six weeks of FY25 started strongly, with group NGR up 10% against a strong prior-year comparison across both venues and digital.
Grosvenor’s progress toward at least £7m of average weekly NGR is a key execution test; management exited FY24 at £6.3m per week.
FY25 employment costs are expected to rise around 7%, creating a material offset to revenue growth and operating leverage.
FY25 CapEx is expected to be approximately £60m, including almost £15m for The Vic, while dividends are being reinstated and cash flow is expected to be broadly neutral.
The timing of the Gambling Act reforms remains unresolved, with clarity not expected until the autumn; delays would defer potential land-based upside and reduce planned enabling spend.
Longer term
Grosvenor’s high fixed-cost base creates substantial operating leverage if revenue reaches and exceeds the £7m weekly target; management believes £7.5m may be achievable despite a tougher post-2019 affordability regime.
Proprietary digital technology is gaining traction: digital operating profit rose 79% to £23.4m and margins improved by 390 basis points, but the medium-term 8–12% revenue-growth ambition depends on continued successful platform modernisation and product releases.
Mecca has returned to profitability at £3.9m of like-for-like operating profit, with management targeting double-digit operating profit over the medium term as the estate and customer proposition improve.
The planned unified membership and cross-channel systems could strengthen customer retention and cross-selling across venues and digital, but benefits remain execution-dependent.
Lease extensions on strategically important casinos could improve security of tenure but may increase lease-adjusted net debt from just under four times annual rent toward approximately five times.
Red flags
FY25 cash-flow neutrality leaves little room for execution misses while investment remains elevated and dividends have resumed.
The Gambling Act review is a central part of the upside case, yet management provided no firm implementation timetable and repeatedly framed benefits as dependent on future legislation.
Employment costs rose £28.8m, or 11%, in FY24 and are expected to increase another approximately 7% in FY25, potentially absorbing a significant portion of operating leverage.
Lease-adjusted net debt was £132.5m and could rise as leases are extended; the call did not quantify the resulting effect on leverage, covenant headroom or shareholder returns.
Digital growth is occurring in a competitive market, while the company’s margin and share-gain targets rely on proprietary-platform modernisation that is not yet complete.
Forward outlook
operating margin
—
FY 2025
management framework
gross margin
—
FY 2025
official guidance
revenue
—
FY 2025
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest ANNUAL · 2025-11-18
- Current Ratio Low
Red flags
- Current Ratio Low — Current ratio 0.48
Earnings transcripts
- Issuer webcast
Preliminary results for the 12 months ended 30 June 2026 – Webcast
THE RANK GROUP PLC
- Issuer webcast
Interim Results for the 6 months ended 31 December 2025 – Webcast
THE RANK GROUP PLC
- Issuer webcast
Capital Markets Event – Webcast
THE RANK GROUP PLC
- Issuer webcastVideo
Watch the full video
THE RANK GROUP PLC
- Issuer webcast
Preliminary results for the 12 months ended 30 June 2025 – Webcast
THE RANK GROUP PLC
- Issuer webcast
Interim Results for the 6 months ended 31 December 2024 – Webcast
THE RANK GROUP PLC
Documents
FormReporting forFiledFlags