The Mecca Bingo and Grosvenor Casino owner reported a 76 per cent plunge in like-for-like net gaming revenues in its third quarter to the end of March, with online sales unable to offset the hit to its venues.
The Group ended the quarter with total cash and available facilities of £89.8M (U$S 124,5M), comfortably achieving its minimum liquidity covenant of £50.0m.
During the quarter the Group received a £13.4m duty refund following the Supreme Court's decision in favour of another taxpayer on the treatment of free gaming chips. The amount of deferred rent has reduced to £13.9m from £17.3m at 31 December 2020.
John O'Reilly, CEO of Rank, commented:"We have ended Q3 broadly where we expected to be and are now very focused on the reopening of our UK venues from 17 May alongside continuing to drive digital NGR growth. Our business has inevitably been heavily impacted by the pandemic but, with the strong support and dedication of our colleagues, we are now very much looking forward to reopening our casino and bingo venues, welcoming back our customers and providing the great entertainment and omni-channel service in a COVID safe environment we know they enjoy."
The Group expects to make its scheduled £19.7m term loan amortisation payment on 31 May 2021. Based on HM Government's current timetable for venues' reopening, the Group expects to continue to meet its banking covenants.