Rank has recently entered into a two-year agreement with Lloyds Bank in the finance sector. This agreement will not only provide the company with additional liquidity but also create an opportunity for it to accelerate investment in its transformation plan. However, Rank intends to proceed with this investment only when it is confident that the business is generating sustainable positive cashflows. It is important to note that the new facility is subject to certain financial conditions and waivers, including a quarterly minimum cash and available facilities test of at least £50m. These conditions are also applicable to Rank’s other bank facility agreements.
In addition to this agreement, Rank already has an existing £55m revolving credit facility and a £108.4m term loan in place. This reflects the company’s focus on maintaining financial stability and flexibility.
The confirmation of the new facility from Lloyds Bank follows Rank’s recent announcement regarding its net revenue performance. Since the reopening of its land-based venues in the UK and Spain, Rank has generated an average of £8.6m in net revenue per week over a six-week period.
In terms of specific revenue figures, Rank’s Grosvenor venues in the UK reported an average weekly like-for-like net gaming revenue (NGR) of £5.5m. Though this figure is 17% lower than the same period in 2019, it is higher than the £4.2m weekly NGR needed to achieve a breakeven point.
For Mecca bingo halls in the UK, the average weekly like-for-like NGR was £2.5m during the six-week period, marking a 20% decrease from 2019. However, it is noteworthy that this figure just managed to surpass the weekly breakeven point of £2.5m.
In Spain, Rank’s Enracha venues witnessed an average weekly like-for-like NGR of £500,000 during the six-week period, which is 34% lower than the comparable period in 2019, but still higher than the average weekly breakeven point of £400,000.
