Arena Events Group PLC Potential Legal Action (3253J)
29 Marzo 2018 - 12:01AM
UK Regulatory
TIDMARE
RNS Number : 3253J
Arena Events Group PLC
29 March 2018
29(th) March 2018
Arena Events Group plc
Potential Legal Action - Arena Americas
Arena Events Group plc (AIM: ARE, 'Arena' or 'the Group'),
announces that its US subsidiary, Arena Americas, has been informed
by the US Attorney's Office ("USAO") that it has formally charged
one of Arena America's previous customers for a violation related
to the Small Business set-aside program. This customer won certain
contracts from the US Department of Defence between 2007 and 2017
that were designed to support the development of small businesses
and subsequently engaged Arena Americas, amongst other
sub-contractors, to supply product and labour for the delivery of
these contracts.
As a result of this, Arena Americas has been notified by the
USAO that an investigation into Arena America's relationship with
this customer has now been launched. Arena Americas is proactively
engaging with the USAO in order to resolve this matter as soon as
practicable.
The total revenue from contracts entered into with this
customer, since the acquisition of Arena Americas in 2013, amounts
to circa $4 million and generated EBITDA of less than $0.5 million.
This revenue is less than 2% of the total Arena Americas revenue in
the same period. The Board is unable to predict the outcome of this
investigation and therefore the level of any potential fines
imposed or settlement that may be negotiated by Arena Americas.
However, with the information available to date, based on similar
cases, we believe the USAO may seek to claim damages in the range
of two times profits to two times revenues, implying a range of
between $1 million and $8 million.
The Group is reviewing all work practices and any additional
compliance procedures required to prevent any similar issues
arising.
A further announcement will be made in due course.
The Group has had a strong start to trading in 2018 and will
announce its final results for the year ended 31 December 2017 as
planned, on 11 April 2018, which remain in line with
expectations.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014
Enquiries:
Arena Events Group plc Via Alma
Greg Lawless (CEO)
Piers Wilson (CFO)
Cenkos Securities (Nomad
and Broker)
Max Hartley (Corporate
Finance)
Julian Morse (Sales) +44(0)207 397 8900
Alma PR (Financial PR) +44(0)7580 216 203
Josh Royston / John Coles
/ Helena Bogle
Notes to Editors:
Arena Events Group plc is a provider of temporary physical
structures, seating, ice rinks, furniture and interiors. The Group
has operations across Europe, the US, the Middle East and Asia, and
current clients include Wimbledon Tennis, The Open, PGA European
Tour and Ryder Cup.
The Group services major sporting, outdoor and leisure events,
providing a managed solution from concept and design through to the
construction and integration of the final structure and interior.
Contracts range in size and complexity from a simple equipment
rental for a local outdoor event, to an integrated solution of
multiple structures and interiors for a major international
sporting event.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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March 29, 2018 02:01 ET (06:01 GMT)
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