Rank Group

Website: Rank Group
Index: FTSE 250
EPIC: RNK
Supersector: Travel and Leisure
Sector: Travel and Leisure
Subsector: Gambling
Market Cap: £433.77M
Payout Frequency: Semi-Annual

Rank Group Dividend Analysis and Summary

Dividend snapshot

Interim dividend: 1.00p per share (up 54% YoY vs 0.65p)
Ex-dividend date: 12/02/2026 (derived from record date)
Record date: 13/02/2026
Payment date: 13/03/2026
Recent distribution history: Final dividend of 1.95p paid on 24/10/2025; trailing cash dividends now total 2.95p
Estimated cash cost of interim: ~£4.7m (based on ~466.7m shares)
Dividend cover (H1): Underlying EPS 5.6p (~5.6x cover of the 1.00p interim); statutory EPS 4.0p (~4.0x cover)

Earnings, cash flow and balance sheet support

Underlying LFL operating profit up 15% to £40.6m; underlying EPS up 17% to 5.6p.
H1 net free cash flow £3.8m (after £27.6m capex and £23.4m lease payments incl. interest).
Net cash (pre-IFRS 16) of £39.4m; net debt (post-IFRS 16) of £165.1m driven by lease liabilities.
Facilities in place: £90m RCF (staggered 2027/28) and £30m term loan (amortising 2026/27).

Dividend sustainability and growth outlook

The 1.00p interim is modest versus earnings (covered >4x on statutory and >5x on underlying H1 EPS), signalling ample profit cover.
Cash conversion is tighter: H1 free cash flow (£3.8m) is below the prospective interim cash cost (~£4.7m), though the Group has £39.4m net cash pre-IFRS 16 and manageable bank borrowings.
Headwinds: UK Remote Gaming Duty rising to 40% from April 2026 will materially reduce UK digital profitability in Q4 and into FY26/27 (pre-mitigation annualised impact ~£46m).
Offsets: Abolition of UK bingo duty from April 2026 adds ~£6.5m p.a.; venues momentum, gaming machine rollout, and improving ROCE (15.9%) support medium-term earnings.
Assessment: The current dividend level looks sustainable in the near term given low payout and balance sheet liquidity, but further growth will likely be paced cautiously until the RGD step-up is absorbed and cash generation improves.

Structural or strategic developments affecting dividends

Leadership transition: CEO John O’Reilly retires; CFO Richard Harris becomes interim CEO (from 30 Jan 2026). Governance change introduces some execution risk near term.
Regulatory/tax: UK digital tax (RGD to 40%) is a significant negative for profitability; UK bingo duty abolition is a positive for Mecca from April 2026.
Operational reforms: Gambling Act changes enabling additional gaming machines in casinos (850 installed in H1) and expansion of sports betting facilities—structural tailwinds for venues.
Geographic expansion: Soft launch in Portugal (YoBingo) with full launch in February 2026—potential medium-term growth, with near-term marketing discipline due to tax headwinds.
Accounting/leases: Prior period lease accounting restatement (non-cash) increased recognised lease liabilities, highlighting a lease-heavy model that weighs on free cash flow via ongoing lease outflows.

Risks and flags to dividend stability

Tax shock: RGD to 40% from April 2026; management expects markedly lower UK digital profitability in Q4 and FY26/27 despite mitigations.
Cost inflation: National Living Wage increases and statutory levies pressure margins, particularly in UK venues.
Cash flow profile: High lease payments and planned FY capex of £50–55m constrain free cash flow; H1 FCF below prospective interim cash outlay.
Operational/controls: £6.5m Spanish payment fraud loss in H1 (recovery unlikely); controls strengthened but represents recent governance risk.
Balance sheet composition: While pre-IFRS 16 net cash provides flexibility, substantial lease liabilities amplify sensitivity to any downturn in footfall or trading.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
13/02/2025	13/03/2025	Interim	0.65p	GBX
18/09/2025	24/10/2025	Final	1.95p	GBX

Total (Annual Dividends Per Share): 2.60p

Dividend Yield = Annual Dividends Per Share (2.60p) ÷ Share Price (92.7p) = 2.8%

Ex Dividend Date	Payment Date	Type	Amount	Currency
12/02/2026	13/03/2026	Interim	1.0000p	GBX
18/09/2025	24/10/2025	Final	1.95p	GBX
13/02/2025	13/03/2025	Interim	0.65p	GBX
19/09/2024	25/10/2024	Final	0.85p	GBX
13/02/2020	13/03/2020	Interim	2.80p	GBX
19/09/2019	29/10/2019	Final	5.50p	GBX
14/02/2019	14/03/2019	Interim	2.15p	GBX
20/09/2018	30/10/2018	Final	5.30p	GBX
15/02/2018	15/03/2018	Interim	2.15p	GBX
21/09/2017	31/10/2017	Final	5.30p	GBX
09/02/2017	21/03/2017	Interim	2.00p	GBX
08/09/2016	20/10/2016	Final	4.70p	GBX
11/02/2016	22/03/2016	Interim	1.80p	GBX
10/09/2015	21/10/2015	Final	4.00p	GBX
12/02/2015	20/03/2015	Interim	1.60p	GBX
10/09/2014	22/10/2014	Final	3.15p	GBX
19/02/2014	21/03/2014	Interim	1.35p	GBX
11/09/2013	23/10/2013	Final	2.85p	GBX
20/02/2013	22/03/2013	Interim	1.25p	GBX

Year	Interim	Final	Currency	Total	Change
2024		0.850	GBX	0.850	-69.640
2020	2.800		GBX	2.800	-63.390
2019	2.150	5.500	GBX	7.650	2.680
2018	2.150	5.300	GBX	7.450	2.050
2017	2.000	5.300	GBX	7.300	12.300
2016	1.800	4.700	GBX	6.500	16.070
2015	1.600	4.000	GBX	5.600	24.440
2014	1.350	3.150	GBX	4.500	9.750
2013	1.250	2.850	GBX	4.100

Number of Shares:

Payment	Paid	Amount
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