Rank Group PLC (LSE:RNK), the owner of Grosvenor Casinos and Mecca Bingo, was one of the worst-hit companies during the pandemic and its turnaround process more challenging than first expected.
Investors will get an insight into its road to recovery when it provides first-half results on Thursday, 1 February.
Casino visitor numbers have struggled to recover as quickly as hoped, while regulatory headwinds and cost pressures also loom over the company.
Recovery began in January 2023 and is expected to continue into the new year, with a key target for the group being building revenues back up to £7 million per week.
One tailwind the group will be hoping for is the swift introduction of gambling reforms, which were announced in April last year.
As part of the white paper, the government plans to change how bingo halls operate, aiming to make sure there is sufficient support to drive employment, growth, and tourism.
Should this tailwind come into effect and the group does grow its digital profitability, analysts see scope for the group to achieve operating profits of £100 million and the share price to lift to 200p.
“Although the timeframe to capture these opportunities may be extended, we would expect the share price to move in advance,” analysts at Shore Capital said, before rating the stock a ‘buy’.
Shares in Rank are down around 4% in 2024, trading at around 73p.