Portfolio

Losses widen at Hyve even amid strong recovery for events

By Josh White

Date: Tuesday 24 May 2022

Losses widen at Hyve even amid strong recovery for events

(Sharecast News) - Events and exhibitions operator Hyve reported revenue of £58.6m in its first half on Tuesday, up from £5.0m year-on-year and ahead of 2021's full-year revenues, reflecting the company's return to a pre-pandemic schedule of events, with the exception of China.
The London-listed firm recorded a headline profit before tax of £9.5m for the six months ended 31 March, down from £29.4m year-on-year.

Excluding the impact of insurance proceeds received of £10.6m, down from £49m, the group said its headline profits would have increased £18.5m, reflecting the "strong recovery" of its events.

Adjusted net debt narrowed to £64.4m from £92.4m, as a result of a return to positive operating cash flow and insurance proceeds.

Hyve's liquidity position stood at £140.5m at period end, up from £122.6m, despite macroeconomic headwinds.

The board said it had secured covenant waivers up to and including March next year and, following the sale of its Russian business, had launched a refinancing process.

On the operational front, Hyve said the ongoing recovery of in-person events was happening at a faster-than-anticipated rate, with some surpassing pre-pandemic levels.

Events in China, however, were disrupted by the reinstatement of strict Covid-19 measures, which also impacted international travel in and out of the country.

The board described a "de-risked portfolio" following its exit from Russia, as well as strategic acquisitions enhancing its "omnichannel strategy".

Hyve said it had entered the second half with momentum and a streamlined portfolio of "market-leading, omnichannel" products, focussed on high-growth sectors.

"Over the last six months we have, once again, had to respond to challenges outside of our control," said chief executive officer Mark Shashoua.

"Thanks to the hard work of our people around the world, not only did we successfully navigate these challenges, but we are now seeing a strong recovery and have moved significantly closer to our long-term vision, more quickly than expected.

"Hyve is almost unrecognisable compared with just five years ago."

Having evolved from a predominantly emerging-markets business, Shashoua said it now had a de-risked portfolio of "market-leading events", mostly focused on the UK, the United States and European markets.

"As such, going forward our focus will be on sectors, rather than geographies.

"This is a significant shift for Hyve, but absolutely the right one for creating sustainable value for stakeholders.

"We continue to expand our brands by launching new products, such as Shoptalk Europe, Ahead by Bett, Green Energy Africa and the first in-person Fintech Meetup event, and applying new propositions, such as our facilitated meetings programmes."

Mark Shashoua described that innovation as "crucial" to the company's success, as it continued to invest in future growth.

"We expect the strong momentum we have seen in the first half of the year to continue - our in-person events are recovering faster than anticipated, with many having already fully recovered.

"Whilst there are clearly global economic and geopolitical headwinds, the Group is in a strong position with renewed confidence.

"This will serve Hyve well when navigating through any potential challenges."

At 1024 BST, shares in Hyve Group were down 4.82% at 87.37p.

Reporting by Josh White at Sharecast.com.

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