Arena Events Group PLC Trading and COVID-19 Update (1905G)
16 Marzo 2020 - 1:00AM
UK Regulatory
TIDMARE
RNS Number : 1905G
Arena Events Group PLC
16 March 2020
16 March 2020
Arena Events Group plc
("the Company" or "the Group")
Trading and COVID-19 update
Arena Events Group (AIM: ARE), the global temporary event
solutions provider is updating the market on its trading
performance for the fifteen-month period ending 31 March 2020 and
provides an update on the impact of the COVID-19 virus.
The Group announced its second interim results for the period
ended 31 December 2019 on 11 February 2020, with guidance that the
"seasonally quiet calendar Q1 period in 2020 would be broadly in
line with that of the prior year with cost savings offsetting any
market weakness". Trading in the two months to the end of February
was in line with management expectations, supported by the largest
confirmed pipeline of future events and projects in the Company's
history.
Since late February, the COVID-19 virus outbreak has spread more
extensively across the world, impacting all regions in which the
Company operates. Initially, customer events were postponed to a
date later in the calendar year with the impact of cancellations
more limited to smaller events and the tableware part of the
business. Almost all of the larger events serviced by Arena in
February and March have been delivered successfully, such as The
Cheltenham Festival, Vice Music Festival in Saudi Arabia and the
NFL Super Bowl LIV. Therefore, the impact on the results for the 15
months to the end of March will not be significant and we expect to
report results broadly in line with expectations.
As we approach the start of the new financial year, the global
situation has changed significantly over the past few days, with a
wider pattern of larger event cancellations amid uncertainty over
the likely duration of the disruption. Whilst only a small number
of Arena's larger events have been cancelled or postponed to date,
there is now a strong likelihood that a number of events in our
first financial quarter will be cancelled or postponed. Given the
type of large event infrastructure that Arena typically delivers,
the preparation and build start dates are typically two to three
months ahead of the event itself and indeed we are already on site
at a number of venues for events scheduled for April and May.
With this backdrop and a period of uncertain demand, the Group
has decided to prioritise its resources and efforts on delivering
projects which have already commenced construction, such as the PGA
Championships, those with a longer delivery timeline such as Expo
2020 Dubai and project sales, for example, at the London Stadium
and Edinburgh Rugby Club, where customers have committed funds to
the Group for future events, on their normal payment terms.
In parallel with the above approach, and with a view to
conserving cash resources, the Group has now implemented a
significant cost reduction programme including temporary lay-offs,
reduced working weeks and global partial or full salary reductions,
including unpaid leave which will remain in force for an initial 6
week period.
The Group is fortunate to have a number of significant long-term
relationships and we are working with these customers (and indeed
all customers) to manage our way through these challenging
conditions.
While the Group has started to see an increased level of
enquiries for equipment to help corporates enact disaster recovery
plans, and structures to help local and national authorities handle
the need for temporary support facilities, it is currently unclear
as to the extent these will offset a prolonged period of event
deferral and cancellation.
Given the high level of uncertainty around future events in the
current environment we are unable to give any guidance for the 12
month trading period to the end of March 2021. We will provide
further market updates as appropriate.
Finally, the Company is in preliminary discussions with a
potential investor to bolster its cash resources by the issue of
ordinary shares at a premium to the current share price, in order
to support the business during this significant time of
uncertainty. There can be no certainty that this will proceed, nor
to the terms of this proposed fundraising and a further
announcement will be made as and when appropriate.
This announcement contains inside information.
Enquiries:
Arena Events Group plc
Greg Lawless, CEO via Alma PR
Steve Trowbridge, CFO
Cenkos Securities (Nomad and Broker) 0207 397 8900
Max Hartley (Corporate Finance)
Julian Morse (Sales)
Alma PR (Financial PR) 07780 901979
John Coles, Josh Royston, Helena Bogle
About Arena Events Group
Arena Events Group plc (www.arenagroup.com) is a provider of
temporary physical structures, seating, ice rinks, furniture and
interiors. The Group has operations across the UK, 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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