H1 LFL NGR +6%; LFL Operating Profit +15% Rank reported its H1’26 results (June Y/E) this morning with group LFL NGR of £419.6m, +6% YoY and LFL underlying operating profit of £40.6m, +15% YoY. All 4 divisions grew LFL NGR in H1 YoY, despite a slowdown in Q2, with Digital leading the way at +8%, Grosvenor +6%, Enracha +6% and Mecca +4%. The Board has proposed an interim dividend of 1p per share, +54% YoY. On current trading, while Q2 is noted as slightly softer, the Christmas and New Year holiday saw strong trading across all businesses, with January performance in-line with expectations. Management remains confident in delivering in-line with FY expectations (GBYf FY26 operating profit £68.2m). The group retains a clear path towards its target of delivering at least £100m operating profit in the medium term. Presentation:9.30am Management will host a presentation at 9.30am today. The webcast can be accessed at www.rank.com Valuation and Investment View This is a solid update from Rank. While there was some headline weakness in Q2 reflecting lower consumer confidence around the budget, trading over Christmas and in January has picked up. The roll out of machines appears to be going well, while the reiteration of targets around Grosvenor weekly NGR and the £100m+ operating profit are positive. In our recent note on Rank, we outlined how we assumed 50% mitigation of the increased RGD burden. Having spoken to management today, our confidence on that level of mitigation has increased. In terms of forecasts, we are likely to leave unchanged following today’s update (GBYf FY26 operating profit £68.2m). Shares are down c.40% since last August, however we think if investors can get confidence in the £100m+ operating profit target, and a strong permanent CEO is appointed, the shares will recover.