Hyve Group PLC Pre-close HY23 trading update (2289U)
March 27 2023 - 2:00AM
UK Regulatory
TIDMHYVE
RNS Number : 2289U
Hyve Group PLC
27 March 2023
27 March 2023
Hyve Group plc
("Hyve" or the "Group")
Pre-close HY23 trading update
Trading in line with the Group's expectations, including the
reopening of China
Hyve Group plc, the next-generation global events business,
today announces a trading update for the period from 1 October 2022
to 26 March 2023.
The Group has successfully run a full schedule of events in the
reporting period and is expected to deliver revenue for HY23 in a
range of GBP95m - GBP100m underpinned by another strong performance
across all key KPIs including like-for-like customer spend.
Following its five-year transformation, which completed in FY22,
the schedule of the Group's streamlined portfolio of market leading
events is now weighted to the first half of its financial year.
This includes brands such as Africa Oil Week, Mining Indaba, Spring
Fair, which all delivered strong year on year growth. Fintech
Meetup and Shoptalk, both taking place at the end of March, are
expected to perform in line with the Group's expectations, despite
some impact on attendance from the uncertainties created as a
result of recent macro events in the Banking and Technology
sectors.
Following the phasing out of COVID-19 related restrictions, the
Group was able to hold its first events in China since 2020,
including ChinaCoat. As expected, the events were impacted due to
early stages of market re-opening and the lack of international
participation.
Good progress has been made in rolling out the meeting
programmes offering across the portfolio. The Group continues to
invest significantly into these products not only to cement the
events' market-leading status, and increase ROI for customers, but
also to drive future organic growth.
Net debt and Insurance
Adjusted net debt at 22 March 2023 was approximately GBP55m [1]
(31 March 2022: GBP64m) which includes the receipt of insurance
proceeds in February and bookings for upcoming events, but does not
take into consideration recent event delivery costs. The adjusted
net debt position at the end of FY23 is expected to be in the
region of GBP80m-GBP85m.
The Group received a further GBP4.2m of cancellation insurance
proceeds bringing aggregate claims to date to GBP110.5m out of
GBP112m maximum available for events cancelled in FY20 and FY21.
This was the final settlement amount in respect of all outstanding
claims.
Forward bookings underpin confidence in FY23 expected
outturn
The Group entered FY23 with positive trading momentum, which has
continued throughout the first half of the year with forward
bookings of approximately GBP145m as of 22 March, giving confidence
that performance for the full financial year will be in line with
the Group's expectations. At the same point in time last year the
Group had GBP102m of forward bookings on FY22 events.
Mark Shashoua, CEO of Hyve Group plc, commented:
Our five-year transformation, which we completed last year and
resulted in a streamlined and de-risked portfolio of market-leading
events, has allowed us to start this year with purpose and
momentum. This has led to strong trading throughout the first six
months of the year, with like-for-like customer spend tracking
strongly into FY23 in line with our expectations.
In addition, our digital diversification continues, with the
addition of new tech-enabled meetings programmes and the expansion
of existing ones. This trajectory will continue in the second half
of the year.
We remain conscious of challenges in the macro-economic
environment globally, the threat of recession in a number of our
markets and, in particular, the recent macro events in Banking and
Tech sectors. However, we believe we are well placed to weather any
possible challenges, as marketing spend continues to gravitate
towards must-attend leading events that drive return on
investment.
[1] Adjusted net debt is defined as cash and cash equivalents
after deducting bank loans.
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