Rank Group Considers Share Issue to Bolster Finances

The Mecca Bingo operator, Rank Group, is examining the possibility of issuing shares to bolster its financial standing.

The company’s leadership has been analyzing its financial situation and is exploring a potential share placement, according to a statement issued by General Counsel Louisa Wright.

The London Stock Exchange’s regulations permit companies to raise up to 19.9% of their market value, which would allow Rank to raise up to £67.1 million based on its current valuation of £337.16 million.

Rank’s statement clarified: “This share offering aims to fortify Rank’s financial position in this extraordinary trading climate.” “It remains uncertain whether a share issue will proceed.”

Rank indicated it would provide further updates as necessary.

This development comes as the company’s UK-based casinos and bingo halls were compelled to shut down once more due to the novel coronavirus (Covid-19), with a new nationwide lockdown commencing today (November 5).

The initial lockdown began on March 23, with bingo halls remaining closed until July 4, while casinos did not resume operations until August 15, two weeks later than initially planned.

In the month of September, Rank declared that its yearly income for the fiscal year concluding on June 30th had decreased by 8.2%, with digital income growth of 22.6% counterbalancing declines in brick-and-mortar revenue due to restrictions in its primary markets of Spain, Belgium, and the United Kingdom.

The organization has withdrawn from the Belgian market, having sold its remaining assets there, the Blankenberge gambling establishment, to Kindred Group for £25 million in a transaction announced last week.

If Rank proceeds with the stock sale, it will become the most recent UK operator to secure funds for its financial resources. Flutter Entertainment sold 8,045,995 new ordinary shares in May at €112.42 per share, raising £812.6 million, while William Hill completed a £224 million share placement in June.

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