The Rank Group has announced its preliminary results for the 12 months ended June 30, with net gaming revenue down by 50 per cent.
With 79 per cent of the group’s revenue being derived from its venues businesses, closures imposed in the government’s response to the pandemic – amounting to 59 per cent of available operating days together with capacity constraints – reduced opening hours and other restrictions during the year have had a material impact.
As a result, net gaming revenue was £288.2m in 2020/21, compared to £575.6 in 2019/20. The group suffered monthly cash losses of £15m, net of the government’s support through the CJRS scheme and business rates relief, during the long periods in which the venues were closed, resulting in net cash outflow from operations of £21.2m in the year.
However, the strong focus on preserving cash during the pandemic, together with the £70m proceeds from the equity raise, the sale of Casino Blankenberge in Belgium for £25.2m and a £13.3m payment from HMRC relating to a Supreme Court case taken by another taxpayer on the gaming duty treatment of free gaming chips have resulted in closing cash and available facilities of £98m.
As at June 30, net debt pre-IFRS 16 was £49.8m, comprising £119.4m in bank loans offset by cash at bank and in hand of £69.6m. The group is confident that it will continue to meet its liquidity and covenant tests.