Amid the ongoing COVID lockdown, gaming and lottery firm Inspired Entertainment has provided its lenders with an updated 13-week projected cash flow forecast which predicts an improved liquidity profile when compared to previous forecasts.
Additionally, the company has announced favorable improvements in recent business trends, with the company taking a number of actions over the past few weeks to provide greater financial flexibility and near-term liquidity for its business.
Based on its recent projections provided to lenders, which assumes the COVID-19 lockdown continues, Inspired currently estimates having available cash balances of £25.7m on July 17, comparing favorably against a prior projection made on 24 March which predicted a balance of £10.1m on July 31.
Executive Chairman Lorne Weil said: “As the impact of this pandemic continues to grow, we remain focused on the well-being of our employees, while taking the necessary steps to strengthen our financial flexibility, prioritize investments, and reduce our expenditures in this time of uncertainty. While it is impossible to predict how long this crisis will last, we believe these actions will help us to navigate this environment to ensure our Company’s long-term success.
“We have been fortunate to see growth in certain of our business lines since the beginning of the COVID-19 crisis, providing us an important cushion against the current cessation in our land-based business. We remain committed to providing our customers with excellent service and products and continue to do our best to accommodate the unprecedented demand in certain business lines, which we see as a significant sign of strength in the longer term.”
Following the projection period laid out by its most recent updated forecast, Inspired management currently expects a further improvement in monthly operating cash uses to approximately £0.5m per month for as long as all retail locations are closed.
As it stands, the majority of the company’s retail customers remain on lockdown due to the COVID-19 pandemic. However, Inspired has seen an uptick in demand such as was demonstrated by the recent Virtual Grand National and the upcoming ‘The Kentucky Derby: Triple Crown Showdown’.
Weil concluded: “We continue to monitor developments on a real-time basis, and, fortunately, we’re starting to see some restrictions on land-based venues have been lifted. We’re looking forward to resuming normal operations as soon as conditions permit, as we seek to build upon our positive momentum from our fourth quarter.”