Arena Events Group sees profit and turnover increase
Arena Events Group sees profits and revenue soar as large-scale sporting events re-emerge amid easing of lockdown restrictions
- Profit was £4.1m over six months versus a loss of £3.3m in 2020
- Group backed by return from events such as the Olympics and Ryder Cup
Arena Events Group saw its sales and profits soar in the six months to September 30 as large-scale events returned after being shut down at the height of the pandemic.
Group sales rose to £82.5 million, up from £42.8 million the previous year, while operating profit was £4.1 million, down from a loss of £3.3 million at the same point a year ago .
Shares in the AIM-listed group fell in early morning trading and are currently down 1.46 percent or 0.30p to 20.20p. A year ago, the share price was 10.60 pence.
Events: Arena Events Group saw revenue and profit increase in the six months to September 30
The company creates temporary physical structures, seating furniture, ice rinks, furniture and interiors.
It has locations in Europe, the US, the Middle East and Asia, and current clients include The Championships, Wimbledon; the opened; the jockey club; the PGA European Tour; and the Ryder Cup.
In October, Arena announced it had accepted a takeover offer from a Middle Eastern consortium that would value the company at £71 million.
The Theta consortium consists of International Holding Company, a publicly traded investor from Abu Dhabi, and Saudi Arabia-based holding company Tasheel. They will own 70 percent and 30 percent of the temporary seating specialist, respectively.
Tasheel, which already owns a 23.9 percent stake in the company, is said to have been “instrumental” in the growth of Arena’s business in Saudi Arabia, which hosts an increasing number of large-scale cultural and sporting events.
The group said the expectation of a “year of transition” remained on track as events “continued to return to pre-pandemic levels in many markets.”
It added: “H1 FY22 has benefited from a number of major major periodic events such as the Olympics and the Ryder Cup, in addition to a longer tail of pandemic-related projects and other relief work than expected, adding 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 transition year for the Group as Covid-19 restrictions are lifted at different rates in each country where we operate, which means a different pace of recovery in the live event industry in each market.”
He added: “Despite strong H1, it is worth noting that the second half of our fiscal year has always been much calmer than the first, and this year is likely to see this pattern again, especially in the US market where Covid-19 and other assistance is becoming less and less.’