rank confirms euro support navigating covid 19 impactsby Joker 17.03.2020 0 comments
Rank Group Plc is the latest gaming industry incumbent to issue a COVID-19 update to investors, today citing a slowdown in UK venue trading over the last three weeks.
The LSE operator stated that despite the slowdown its UK venue portfolio of Grosvenor Casinos and Mecca Bingo ‘remained profitable last week’.
Following the UK government’s civil advice to avoid leisure venues, Rank has estimated that a potential closure of business would result in ‘monthly net (cash) cost’ of approximately £25m before any mitigating actions.
In addition, the firm told investors that it is due to pay corporate duties of around £40m in April.
Rank venues in Spain and Belgium have been closed, complying with their respective national governments’ restrictions on public movement and business services.
With regards to its European units, the company said it will receive “…substantial support from those governments subsidising payroll costs as we temporarily lay off colleagues”.
Countering potential disruptions, Rank pointed to its strong balance sheet which maintains a net-debt of £32m. In addition, the firm holds access to an undrawn £85m corporate credit facility, whilst maintaining a current cash reserve of £163m.
“At this stage, given the continued uncertainty, the Board does not believe it appropriate to provide financial guidance for the current financial year ending 30 June 2020. The Board will provide an update as and when appropriate,” Rank concluded.