TIDMHYVE
RNS Number : 7353U
Hyve Group PLC
08 April 2021
8 April 2021
Hyve Group plc
("Hyve" or the "Group")
Trading update
Further insurance payments secured
Strong financial platform as markets re-open
Hyve Group plc today announces a trading update ahead of its
interim results for the six months ended 31 March 2021, which will
be announced on 18 May 2021.
Trading
In the first half of FY21 the Group ran 12 in-person events,
held in Turkey, Russia, Ukraine, China and most recently in India.
This brings the total number of events run since the onset of the
pandemic to 24. As previously communicated, while domestic
attendance remains high, events are running at a significantly
reduced scale given the ongoing international travel restrictions
in place due to COVID-19.
Revenue for the first half is expected to be approximately
GBP10m; this includes revenue from Groceryshop Spring Meetup which
performed more than 10% ahead of expectations.
Groceryshop Spring Meetup
The acquisition of Retail Meetup in December 2020 brought to
Hyve a first of its kind commercial proposition, which connects the
entire retail and grocery ecosystems and offers opportunities to
network and trade, at scale. The Retail Meetup product is a key
part of the Group's omnichannel evolution, providing Hyve with a
flagship digital format.
In March 2021, the Group ran its first virtual Meetup event,
Groceryshop Spring Meetup. It saw high levels of customer
participation with 8,884 online meetings taking place over the
three-day event, proving that online events can both cater to
customer needs and be monetised.
In the second half of FY21 the Group has one further Meetup
event scheduled, Shoptalk Meetup for Women (11-13 May 2021), with
registrations tracking in line with management expectations. Two
additional events will follow in FY22, Shoptalk Fall Meetup (19-21
October 2021) and Shoptalk Europe Meetup (dates tbc). Online events
are scheduled to be complementary to in-person events, giving
Shoptalk and Groceryshop the opportunity to meet customer needs at
multiple points through the year.
Insurance claims
In March, GBP15.9m of further insurance claims have been
approved, GBP5.0m in respect of FY20 events and GBP10.9m in respect
of FY21 events.
In its trading update in January, the Group announced it had
received confirmation of a further interim payment of GBP8.4m which
has now been received.
To date insurance proceeds total GBP71.0m, GBP22.0m of which was
received in FY20 and GBP49.0m of which has been received or
confirmed in FY21. In total, GBP56.3m has now been received or
confirmed in respect of FY20 events (policy cap: GBP62.0m) and
GBP14.8m has been received or confirmed in respect of FY21 events
(policy cap: GBP50m).
Disposal of Kazakhstan events portfolio
Hyve today also announces the disposal of ITECA LLP, the
operating company for 25 of the Group's non-core, regionally
focused events in Kazakhstan, to ICA (JV) Limited, a company owned
and operated by a former consultant to Hyve in the region. This
completes the Group's planned exit of its business in Central
Asia.
In the financial year ended 30 September 2020, the Kazakhstan
events portfolio generated revenues of approximately GBP2.1m and
reported an operating loss of approximately GBP0.6m. As at 30
September 2020 gross assets were approximately GBP7.6m and net
assets GBP2.8m.
The Group's current expectation for consideration receivable is
between GBP4.8m and GBP5.8m over a five to seven year period. The
amount of the consideration and timing of payments varies by
reference to the performance of the Kazakhstan business.
Outlook
Hyve is currently trading between the Group's two modelled
scenarios, "Recovery"(1) and "East West"(2) . In either scenario,
Hyve maintains its strong liquidity position and has visibility of
significant cash headroom throughout FY21 and FY22. H1 2021 net
debt is expected to be approximately GBP92m.
With restrictions remaining on international travel and
lockdowns still ongoing in certain markets, disruption to the event
schedule continues. However, the Group is encouraged by the pace of
vaccine rollouts in countries such as the United Kingdom and United
States and while the near-term outlook remains fluid, Hyve
continues to see strong demand for its market- leading events and a
gradual return of customer participation.
Mark Shashoua, CEO of Hyve Group plc said:
"Hyve is currently operating between our two modelled scenarios.
The Group has run in-person events in five Eastern markets during
the first half. While the outlook remains fluid, the pace of
vaccine roll outs in the United Kingdom and United States provides
optimism that events in Western economies will run in the second
half and with growing confidence from calendar year 2022 in line
with our recovery scenario.
The continuing strength of customer rollover for Western events
is proving there is pent-up demand that will be fulfilled as and
when restrictions are fully lifted.
We remain active in delivering on our strategic goals, including
managing our portfolio, and are pleased to have found a good home
for the 25 legacy events in our regional Kazakhstan portfolio; we
wish the business success in the future. This concludes a key
strategic aim to exit the Central Asia markets.
Our focus on developing our omnichannel strategy positions Hyve
well for recovery as markets re-open. We are focused on driving
growth via in-person market-leading events as restrictions lift,
and online as we progress the Group's digital evolution. As a
blueprint for future growth, in March we successfully ran our first
monetisable virtual Retail Meetup event, Groceryshop Spring Meetup,
with exceptional online turnout and engagement, providing a proven
model for our next two virtual Meetup events to follow."
(1) 'Recovery' scenario assumes that events in China, Russia,
Ukraine and Turkey are able to go ahead in FY21. However, they will
be smaller than in previous years with a largely domestic customer
base. This scenario assumes that events in western markets will
take place during the second half.
(2) 'East-West' scenario assumes that no western events take place throughout the year.
For further information please contact:
Hyve Group plc
Mark Shashoua / John Gulliver +44 (0)20 3545 9400
FTI Consulting
Charles Palmer / Emma Hall / Chris Birt /
Jamille Smith +44 (0)20 3727 1000
About Hyve Group plc
Hyve Group plc is a next-generation global events business whose
purpose is to bring together and connect entire sector ecosystems
from all corners of the globe. We meet our customer needs to learn,
network and trade via both market-leading in person and online
events. Hyve Group plc is all about globally consistent best
practice and unrivalled quality. Our vision is to create the
world's leading portfolio of content-driven, must-attend events
delivering an outstanding experience and ROI for our customers.
Hyve's market-leading portfolio of global brands include: Shoptalk,
Spring Fair, MosBuild, Bett, Mining Indaba and recently acquired
Retail Meetup, a ground-breaking digital platform enabling online
networking and trade to take place at scale.
Where business is personal, where meetings move markets and
where today's leaders inspire tomorrow's.
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