Arena Events Group Gains Profit and Revenue As Larger Games Reappear Amid Lockdown Restrictions
- Profit in six months came in at £ 4.1m, compared to the £ 3.3m loss of 2020
- The group has been encouraged by the return of events such as the Olympics and Ryder Cup
Arena Events Group saw its revenues and profits rise in six months to September 30, as large-scale events returned after it stopped at the peak of the epidemic.
Group revenues rose to £ 82.5million from £ 42.8million the previous year, but operating profit came in at £ 4.1million, down from £ 3.3million a year ago.
Shares of the AIM-listed group fell in early morning trading and are currently down 1.46 per cent or 0.30p to 20.20p. The share price was 10.60p a year ago.
Events: Arena Events Group increased its revenue and profit in the six months to September 30
The company creates temporary physical structures, seating, ice rinks, furniture and interiors.
It has operations across Europe, the US, the Middle East and Asia, and current clients include championships, Wimbledon; Open; Jockey club; PGA European Tour; And the Ryder Cup.
In October, Arena revealed it had accepted a takeover offer from the Middle East Consortium, which would value the company at £ 71 million.
Theta Consortium is made up of Abu Dhabi-based publicly listed investors International Holding Company and Saudi Arabian based holding company Tasheel. They make up 70 percent and 30 percent, respectively, of temporary seating experts.
Tasheel, which already has a 23.9 per cent holding in the company, is said to be the ‘tool’ in growing the arena business in Saudi Arabia, which hosts a large number of large-scale cultural and sports events.
The group said its ‘transition year’ guidance is on track as events continue to return to pre-epidemic levels in many markets.
It added: ‘The H1 FY22 has benefited from several large cyclical events such as the Olympics and the Ryder Cup, as well as the long tail of epidemic related projects and other relief efforts, which offset inflationary pressures and a tight labor market.’
Greg Lawless, the group’s chief executive, said: ‘As we reported in July, FY22 is expected to be a transitional year for the group, as Kovid-19 restrictions are removed at different rates in each country we operate. Different speeds of recovery in the live events industry in each market.
He said: ‘Despite the strong H1, it is worth noting that the second half of our financial year is always more seasonally quieter than the first, and this year it will again follow that pattern, especially with the Kovid-19 where the US market and other remedial works are declining.’