In a statement issued by general counsel Luisa Wright, the operator stated that its board is continuously reviewing its financial position and considering a share placement. According to London Stock Exchange rules, businesses can raise up to 19.9% of their market capitalisation. Based on Rank’s £337.16m valuation, this could result in a potential raise of up to £67.1m. The purpose of this equity issuance would be to strengthen Rank’s balance sheet in the current challenging trading environment. However, it is uncertain whether the equity issuance will proceed. Rank will provide further updates if necessary.
Rank’s British brick and mortar casinos and bingo halls have been recently forced to close due to the ongoing Covid-19 pandemic. The national lockdown initiated on 5 November led to the closure. During the earlier lockdown from 23 March, bingo halls remained closed until 4 July, while casinos had to wait until 15 August to resume operations, which was two weeks later than initially planned.
In September, Rank reported an 8.2% decline in revenue for the year ended 30 June. The decline in land-based revenue resulting from lockdowns in core markets (Spain, Belgium, and Great Britain) was offset by a 22.6% increase in digital revenue. As part of its financial strategy, Rank has sold its remaining property in Belgium, Casino Blankenberge, to Kindred Group in a £25m deal.
Following the trend of other British operators, Rank is considering a share sale to strengthen its finances. Flutter Entertainment raised £812.6m in May through the sale of new ordinary shares, while in June, William Hill completed a £224.0m placement.
