Rank Group PLC (LON:RNK) confirmed today that it is mulling a share issue to help shore up its finances following the impact on the business of the coronavirus lockdowns.
In a statement, the Mecca Bingo and Grosvenor Casino group, which was valued at £337mln last night, said it was in discussions with its advisers over an equity issue of up to a maximum of 19.9% of its issued share capital.
The group said the money would help strengthen its balance sheet in the unprecedented trading environment, but no decision has been made on whether it would go ahead.
In September, Rank reported that its net profits fell 66% to £9.4mln in the year to end June 2020, while net gaming revenue dropped by 8%.
Rank's venues closed in mid-March during the first lockdown and will have to shut again in England from today for a month as a second countrywide lockdown comes into force.