28th Jan 2021 09:35
(Alliance News) - Rank Group PLC on Thursday said it swung to a loss in the first half of its financial year as Covid-19 restrictions forced the closure of its venues for much of the period.
The Maidenhead, Berkshire-based casino operator reported a GBP59.4 million pretax loss for the six months ended December 31, swinging from a GBP48.2 million profit the year before as revenue plunged 55% to GBP177.6 million from GBP391.8 million.
Chief Executive John O'Reilly said: "We have been closed nearly as much as we have been open with 45% of available operating days in our venues lost to Covid-19 enforced restrictions. Added to the closures has been the very severe impact of the curfew which has effectively halved both the trading day and our revenues in casinos."
No interim dividend was declared, Rank having paid out 2.8 pence per share the year before.
Looking ahead, Rank said the performance of its UK facing digital business is improving and there has been continue "good growth" from its Yo brands.
O'Reilly said: "There continues to be uncertainty looking ahead, particularly as our venues remain closed and we have no firm guidance as to when we will be able to reopen. We remain focused on managing our liquidity position and, following the successful GBP70 million equity placing in November 2020, combined with the support of our lending banks, I believe we have the balance sheet strength to survive an extended period of closure.
"We are now focusing on delivering the next stage of our transformation plan and are ready to reopen our venues when the virus is under control and the vaccine roll-out has achieved its purpose."
Shares in Rank were down 4.1% at 121.05p in London on Thursday morning.
By Anna Farley; [email protected]
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