Horse-racing firm Phumelela Gaming and Leisure could file for voluntary liquidation.

The JSE-listed company said the decision to shut shop would hinge on the company's ability to raise capital and survive the Covid-19 lockdown period and its aftermath.

Phumelela, founded in 1997, made the announcement on Monday when delivering its interim results for the six months ended January 31.

Horse-racing and betting are some of the businesses that have come under strain during the state-imposed Covid-19 lockdown, which kicked in on March 26, as they are not deemed essential services by government.

"As at the date of this results announcement the prospects for horse-racing, other sports events and betting are uncertain and the board is in no position to provide reliable guidance," said Phumelela while delivering its interim results.

The company owns a number of race courses including Kenilworth in Cape Town, Turffontein in Johannesburg and Durbanville also in the Western Cape.

"The group is operating under onerous conditions, much of which is beyond its influence. Phumelela seeks further negotiations with the broader horse-racing community to find a resolution to the dire situation in horse-racing and agree commercially sustainable solutions.

"The group remains engaged in discussions aimed at raising capital. Should these discussions not prove conclusive soon, the board will have to decide on whether there is any reasonable prospect that the group's business can be rescued, or whether to make application for voluntary liquidation.

"The board's current view is that even if financial relief can be obtained, a relief package should be negotiated as part of a business rescue plan. The board will make an announcement in this regard in the near future," read the statement.

The interim results showed that equity accounted profits stood at R91,4m, international profits hovered around R113,1m, while local operations lost a combined R115,1m.