Arena Events Group PLC – ARE – Interim Results

Arena Events Group PLC – ARE – Interim Results

Arena Events Group plc (AIM: ARE) announces its unaudited interim results for the six-months ended 30 September 2021 (H1 FY22) including the first fully consolidated results of Arena Aztec Shaffer (AAS).

The guidance of a "transitional year" remains on track as events continue to return to pre-pandemic levels in many markets. H1 FY22 has benefitted from a number of large major periodic events such as the Olympics and the Ryder Cup, alongside a longer tail of pandemic related projects and other relief work than was expected, which has more than offset inflationary pressures and a tight labour market.

Financial highlights (includes fully consolidated AAS from April 2021)

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Revenue increased to £82.5m (6m Sept 20: £42.8m)

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Gross profit margin decreased to 33.7 per cent. (6m Sept 20: 34.6 per cent.) due to revenue mix

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Adjusted EBITDA (1) increased to £12.3m (6m Sept 20: £4.4m)

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Operating profit of £4.1m (6m Sept 20: loss of £3.3m)

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Profit after taxation of £2.5m (6m Sept 20: loss of £5.3m)

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Basic EPS of 0.8p (6m Sept 20: loss per share of 2.7p)

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Period-end cash £31.3m (Sept 20: £15.5m), net debt (2) £23.8m (Sept 20: £26.4m)

 

Financial highlights (excluding consolidated results of AAS)

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Revenue increased to £65.0m (6m Sept 20: £42.8m)

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Adjusted EBITDA (1) increased to £10.3m (6m Sept 20: £4.4m)

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Period-end cash £28.6m (Sept 20: £15.5m), net debt (2) £11.9m (Sept 20: £26.4m)

 

Operational highlights

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In the UK & Europe - delivered structures, seating and furniture at major events including the Open at Royal St. Georges, the BMW PGA Championship at Wentworth, the Cinch Tennis at Queen's Club and the Wimbledon Tennis Championships; built a temporary outdoor theatre for the Royal Shakespeare Company; installed structures at Epsom and Newmarket racecourses and seating for the Goodwood Revival and Festival of Speed.

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In the Middle East & Asia - seasonally quiet, with activity focused on planning for the delivery of new and returning projects in the UAE and KSA in the second half of the year.

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In the US - completed the acquisition of a 50 per cent. interest in AAS; built over 600,000 sq.ft. of tenting, approximately 8,000 seats and a number of other temporary structures for the Ryder Cup in Whistling Straits; supported a number of COVID-19 related and other relief projects across the country; supplied structures to the 2021 U.S. Open, the PGA Championships and the Experimental Aircraft Aviation (EAA) AirVenture airshow.

 

Post period events

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On 20 October announced a recommended cash offer for the Group of 21 pence per share, being a 40.9 per cent. premium to the volume weighted average price of 14.9 pence per share for the three months to 19 October 2021 and a 50.0 per cent. premium to the 14.0 pence per share subscription and placing price completed in April 2021.

 

Greg Lawless, CEO, commented:

"As we reported back in July, FY22 is expected to be a transitional year for the Group, as COVID-19 restrictions are lifted at varying rates in each country in which we operate, giving a different pace of recovery in the live events industry in each market.

In H1 FY22 we have delivered world class solutions for a number of large events such as the Tokyo Olympics and the Ryder Cup, alongside the gradual return of many annual events, often adapting to late-changing customer requirements. We have also seen a much longer tail of projects in support of the COVID-19 pandemic and other relief projects which has helped to protect margins in the face of growing inflationary pressures and a tight labour market. We are also pleased to have completed the acquisition of a 50 per cent. stake in Arena Aztec Shaffer, along with our 50 per cent. consortium partners, which has strengthened our offering in the US market.

Despite the strong H1, it is worth noting that the second half of our financial year is always seasonally much quieter than the first, and this year will again most likely follow that pattern, particularly in the US market where COVID-19 and other relief work continues to reduce.

By way of conclusion, I am very grateful for the opportunity to have been involved in the growth of the Arena Events Group over the last fifteen years. It has been a journey that would not have been possible without the support and commitment of all my colleagues around our global operations."

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