Rank Group has agreed to a £25 million (€29 million) revolving credit line with Lloyds Bank, which will be available to the LSE-listed gambling company.
The loan has been made available to Rank for a two-year period, giving the company more liquidity and the ability to accelerate investment in its transformation plan once it is sure that the group is achieving sustainable positive cashflows.
As a result of the transaction, Rank will have more liquidity options, with the Lloyds facility joining its £55 million credit line and £108 million term loan.
Recent trade report
In light of prolonged COVID-19 restrictions, the group provided a trade report last week, stating that their post-lockdown venue performance was better than expected.
The average weekly net gaming income for the six weeks following the reopening of Grosvenor Casino and Mecca Bingo sites was £8.6 million, a 19 percent decrease when compared to 2019 statistics, Rank’s last year of uninterrupted trading.
Returning to business, Rank observed a dramatic drop in client numbers throughout its London Grosvenor locations, which it attributed to persistent limitations on the capital’s late-night economy and a severe slowdown in tourism.
Positives were noted, however, in terms of like-for-like net gaming income outside of London, which was reported as being “close to 2019 levels.”