5th Mar 2020 08:53
(Alliance News) - Exhibitions and conferences firm Hyve Group PLC on Thursday said the coronavirus outbreak will hurt annual earnings and revenue due to the postponement of several events and a significant disruption across multiple geographies and sectors.
Shares in the company were down 9.5% at 64.00 pence each in London.
The FTSE 250-listed company expects a hit between GBP17 million to GBP19 million on revenue for its year ending September 30, translating to a GBP16 million to GBP18 million dent in profit.
The company, however, noted it continues to be highly cash generative and has already booked around GBP200 million of revenue for financial 2020.
In financial 2019, the company recorded pretax profit of GBP8.7 million on a revenue of GBP220.7 million.
"Chinese exhibitor participation in our non-Chinese events, recent travel restrictions, in particular for many of our Chinese customers who are either unable to leave their region of China or unable to enter certain countries, have started to adversely impact revenue at a number of our events," Hyve said, adding it has postponed four March events in Asia to later dates in financial 2020.
The company also said it has postponed Shoptalk and Groceryshop - Shoptalk 2020 as US companies are discouraging business travel, including conference attendance.
"Other than the specific examples above, all of our other events are currently expected to go ahead as planned. The situation is evolving on a daily basis, but Hyve continues to work hard to mitigate the impact that the coronavirus outbreak is having on our business," the London-based company said.
"The above estimates are based on the current situation and therefore could change if the situation improves or worsens. As things currently stand, none of the above impacts are expected to have a significant impact on the Group's results beyond the current financial year," Hyve added.
By Tapan Panchal; [email protected]
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