23rd Mar 2020 09:54
(Alliance News) - Hyve Group PLC on Monday said it has activated a large-scale postponement plan per region due to government restrictions aimed at containing the Covid-19 outbreak.
Earlier in March, the exhibitions and conferences firm said the coronavirus outbreak has led to the postponement of several events and a significant disruption across multiple geographies and sectors. It had said it 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.
On Monday, the FTSE 250-listed company said its postponement plan will be larger than previously expected, adding that should the situation worsen, more events will have to be moved.
Hyve added that it is implementing cash flow management and cost-cutting measures to enable the effective use of capital throughout the period of uncertainty. It said it has fully drawn its debt facilities of GB250 million in order to maximise flexibility and is in talks with its lender in relation to covenant headroom and facility flexibility.
"The board believes that the measures being put in place will enable the group to protect its core shows, customers, colleagues and communities for the long term. We strongly believe that our strategy of focusing on market-leading events will stand the test of time, once we come through this issue," Hyve said.
The company also withdrew its guidance.
Hyve shares were trading 3.6% lower at 21.75 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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