Inspired Entertainment has provided its lenders with an updated 13-week cash flow forecast that predicts an improved liquidity profile compared to previous forecasts amid the ongoing COVID lockdown, gaming and lottery company.
In addition, the company has announced favourable improvements in recent business trends, with the firm taking a series of actions over several weeks to give its business greater financial flexibility and liquidity in the near term.
Based on its recent projections given to lenders, which assumes the COVID-19 lockdown continues, Inspired currently estimates having available cash balances of £25.7 million on July 17, compared favourably with a preliminary projection made on March 24, which predicted a £10.1 million balance on July 31.
Lorne Weil Executive Chairman said: “As the impact of this pandemic continues to grow, we remain focused on the well-being of our employees, while taking the necessary steps to strengthen our financial flexibility, prioritise investments, and reduce our expenditures in this time of uncertainty. While it is impossible to predict how long this crisis will last, we believe these actions will help us to navigate this environment to ensure our Company’s long-term success.
“We have been fortunate to see growth in certain of our business lines since the beginning of the COVID-19 crisis, providing us an important cushion against the current cessation in our land-based business. We remain committed to providing our customers with excellent service and products and continue to do our best to accommodate the unprecedented demand in certain business lines, which we see as a significant sign of strength in the longer term.”
Following the prediction timeframe set out by its new revised forecast, Inspired management is currently anticipating a further increase in monthly operating cash uses to around £0.5 m a month as long as all retail outlets are closed down.
As it stands, due to the COVID-19 pandemic much of the company’s retail customers remain on lockdown. But Inspired has seen an upsurge in demand as the recent Virtual Grand National and the forthcoming ‘The Kentucky Derby: Triple Crown Showdown’ have shown.
Weil ended by saying: “We continue to monitor developments on a real-time basis, and, fortunately, we’re starting to see some restrictions on land-based venues have been lifted. We’re looking forward to resuming normal operations as soon as conditions permit, as we seek to build upon our positive momentum from our fourth quarter.”