Reawakened Rank secures options on £25m credit facility

Rank Group has entered an agreement with Lloyds Bank that will provide the LSE listed gambling group access to a £25 million (€29m) revolving credit facility.

The facility has been made available to Rank for a period of two years , providing its business with additional liquidity and ‘the opportunity, when we are confident that the Group is delivering sustainable positive cashflows, to accelerate investment in the Group’s transformation plan’.

Rank will enhance its liquidity options as a result of the transaction, adding the Lloyds facility to its £55 million credit line and £108 million term loan.

Last week, the group published a trading update, citing that its post-lockdown venue performance was better than anticipated in light of continued COVID-19 restrictions.

On average, weekly net gaming revenue for the six weeks following the reopening of Grosvenor Casino and Mecca Bingo venues was £8.6 million  – reflecting a 19% drop when compared to 2019 results, the last year of uninterrupted trading for Rank’s business units.

Returning to business, Rank noted a significant customer decline across its London Grosvenor properties  – which the company attributed to ongoing restrictions on the capital’s late-night economy and a severe downturn in tourism.  

However, positives were cited regarding like-for-like net gaming revenue at the casinos outside of London, which were reported as ‘close to 2019 levels’.