Rank Group Plc has released a business update as it begins reopening its Mecca Bingo locations across England from Saturday July 4.
Absorbing the impacts and costs of COVID-19, Rank said its group’s underlying profits would be at the bottom of its £48-58 million guidance given for the year ending June 30, 2020.
Despite the closure of his entire UK-based gaming estate since mid-March, Rank pointed out that the company has maintained a net cash outflow that is consistent with previous guidance.
Rank has maintained £ 140 million in cash and available facilities as of 1 July, with the gaming company insisting that it would satisfy its demands for a 2020 Bank Agreement.
As Rank begins its phased reopening of Mecca Bingo venues across England, it aims to reduce its monthly net cash flow from £ 10 million to £ 7 million, based on further reopenings of venues in Scotland and Wales.
The LSE group is currently awaiting approval from the government as to when it will be allowed to reopen its Grosvenor Casino premises where the group will work with the Betting and Gaming Council (BGC) to ‘engage the government.’
Rank reopened his Enracha bingo clubs in Spain on June 10, stating that revenue had been ‘at approximately 60 percent of pre-Covid-19 levels.’
Rank highlighted its digital division’s continued momentum, which proforma-based generated a ‘aggregate revenue growth’ of about 17 percent.
Despite new subsidiary Stride Gaming incorporating new safer gambling and consumer due diligence steps to put them into line with Rank operating policies, digital growth has been sustained.
John O’Reilly, Rank chief executive, commented: “I am pleased that we will be able to start welcoming our loyal Mecca customers back into their clubs on Saturday and we are all looking forward to doing what we do best. As ever, the health, safety and wellbeing of all our customers and colleagues remains front and centre of everything that we do, and we have created safe environments for our customers to come and enjoy themselves once again.
“Our Grosvenor venues are also ready to safely open and we are working hard to ensure we receive the support of the Government to reopen our casinos soon. Our colleagues are very keen to get back to work to pick up the progress we had been making prior to lockdown.”