Social Entertainment Ventures, the operator of Bounce, Hijingo and Flight Club USA, has reported it has adequate financial resources to continue operating for at least 12 months based on its forecasts.

The Adam Breeden-founded company plans to have its UK and US estate fully reopen this month, though assumes trade will not get back to pre-pandemic levels until the end of 2021.

The group has accessed the furlough scheme, CBILS funding, and in the US the Paycheck Protection Program.

In a full year financial report covering up to September 2019, SEV said its successful access to funding would allow it to settle existing liabilities and support sites as they reopen.

The company said current trading in the hospitality sector, of around 60% of prior year levels, was in line with its forecasts.

In the event of second national lockdown, SEV said it would require more support from investors and banks.

The group reported revenues for 2019 were up 27% to £19.1m, while it made a loss after tax of £1.2m.

Adjusted EBITDA rose by 39% to £1.8m. The results include the first full year’s trading from Flight Club Chicago, which SEV operates under licence in North America.

The company opened their second Flight Club in Boston in December 2019 which pre-pandemic had traded very successfully. In the UK their new bingo concept Hijingo was set to open in mid March but its launch remains on hold.

SEV has raised $13.8m (£10.6m) of institutional funds in two tranches, to support the development of Hijingo and expansion of Flight Club in the US.

Toby Harris, CEO, commented: “What happened in 2019 seems a lifetime ago but it was a great year for us. Current trading during this period appears to be in line with our peers and both our US and UK teams are working very hard to navigate their way through all the challenges. London and Chicago have been tough given the lack of city centre action and we have only this week reopened in Boston. On a positive note the spacing between playing areas and the spaciousness of our venues certainly means that our guests feel safe and can still have fun.”

SEV said it continues to review opening plans for its pipeline of new sites in the US and UK and it remains active in pursuing new opportunities for its brands in both countries.

Topics