8th Apr 2020 10:09
(Alliance News) - Hyve Group PLC said Wednesday it has cancelled its current year dividend but believes it is well placed for future growth.
Shares in the exhibitions and conference organiser jumped 20% in London on Wednesday morning 20.88 pence each.
Hyve had previously reported a "strong" first quarter performance - for its year ending September 30 - but on Wednesday said its second quarter has been hit by the coronavirus.
The lockdown measures implemented by governments around the world have seen Hyve cancel 8 of its events, postpone a further 12 to financial 2021 and delay 33 until later this financial year.
"Three of the group's top 10 events ran in the quarter, including Bett and Mining Indaba, both of which reported strong year-on-year growth. Spring Fair also took place in the second quarter and despite an ongoing impact from Brexit and reduced attendance by Chinese exhibitors due to coronavirus travel restrictions, the rate of decline slowed compared to the previous year," Hyve said.
The company previously said it expects a hit of 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.
In order to combat this, Hyve has furloughed over 25% of its staff in the UK and its management team has taken a temporary 20% pay cut.
Hyve also said it has secured a waiver for its June covenant tests under its debt facilities. The company has access to debt facilities of GBP250 million, which it has fully drawn.
"Whilst management continues to take action and review further options to secure the group's long-term financial position, the board believes that the decisive actions being taken will improve the group's financial and operational footing and help to safeguard the group's customers, colleagues and communities. The board remains confident that the group's strategy of focusing on market-leading events provides a strong platform to deliver growth post the current crisis," Hyve added.
By Paul McGowan; [email protected]
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