Arena Events Group sees profits and revenue rise as large-scale sporting events reappear amid the easing of lockdown restrictions
- Profits came in at £4.1m over six months versus 2020 losses of £3.3m
- Group buoyed by return of events like the Olympics and the Ryder Cup
Arena Events Group saw its revenue and profit climb in the six months to 30 September as large-scale events returned after being halted at the height of the pandemic.
The group’s revenue rose to £82.5million, up from £42.8million the previous year, while operating profits came in at £4.1million, against a loss of £3.3million at the same point a year ago.
Shares in the AIM-listed group fell in early morning trading and are currently down 1.46 per cent or 0.30p to 20.20p. A year ago the share price was 10.60p.
Events: Arena Events Group saw its revenue and profit climb in the six months to 30 September
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 The Championships, Wimbledon; The Open; The Jockey Club; the PGA European Tour; and the Ryder Cup.
In October, Arena revealed it accepted a takeover offer from a Middle Eastern consortium that would value the company at £71million.
The Theta consortium is made up of International Holding Company, an Abu Dhabi-based publicly-listed investor, and Saudi Arabian-based holding company Tasheel. They will own 70 per cent and 30 per cent respectively of the temporary seating specialist.
Tasheel, which already owns a 23.9 per cent holding in the company, is said to have been ‘instrumental’ in growing Arena’s business in Saudi Arabia, which is organising an increased number of large-scale cultural and sporting events.
The group said its guidance of a ‘transitional year’ remained on track as events ‘continued to return to pre-pandemic levels in many markets’.
It added: ‘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.’
Greg Lawless, the group’s chief executive, said: ‘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.’
He added: ‘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.’