Hyve announces financial results for the six months to 31st March 2021.



  • Robust financial position after further insurance proceeds and ongoing cost management
  • Ran 12 in-person events in H1 despite the ongoing disruption caused by COVID-19
  • Strong customer rollovers reflect pent-up demand for market leading events
  • Well positioned to emerge from the pandemic a stronger business with an omnichannel strategy
Mark Shashoua, CEO of Hyve Group plc, commented:
“Hyve is focused on emerging from the pandemic a stronger business, with a robust financial platform and strategy in place to meet pent-up event demand, while accelerating our omnichannel offering. Since the outbreak of COVID-19 we have secured insurance proceeds totalling £84.9m, achieved cost savings above our projections and ensured we have sufficient liquidity to make the most of the opportunity in front of us as markets begin to reopen.
“Having run events in Russia, Ukraine, China, Turkey and India in H1, we are optimistic that events in Western economies will run in the second half, in line with our modelled scenarios. Continued customer rollover for Western events provides confidence in the pent-up demand for market leading in-person events, which Hyve is well positioned to serve.
“COVID-19 has provided Hyve an opportunity to reset, renew and evolve. We are enhancing our already market leading in-person events by significantly building out our capability to deliver bespoke facilitated meetings programmes at a number of our events in FY22. Our quality-focused portfolio is optimally positioned to deliver an even greater return on time and money for our customers than before the pandemic.
“We continue to evolve our omnichannel strategy, enabling us to strengthen our existing brands, monetise online events and offer customers multiple opportunities to learn, network and trade throughout the year. Our recent acquisition of Retail Meetup is tracking ahead of expectations, demonstrating a successful monetisable model for future virtual Meetup events. With the speed of vaccine rollouts providing optimism and the strong liquidity headroom we have created, we enter the second half with the right talent, portfolio and omnichannel strategy to meet pent-up demand now and into FY22.”
 
 
Financial headlines4 Six months to
31 March 2021
Six months to
31 March 2020
     
Volume sales 39,400 m2 288,900 m2
Revenue £10.4m £90.6m
Headline profit before tax1 £27.6m £19.4m
Profit / (loss) before tax £18.7m £(168.7)m
Headline diluted earnings per share2 8.5p 10.9p
Diluted earnings per share2 5.9p (120.2)p
Interim dividend per share Nil Nil
Adjusted net debt3 £92.4m £157.2m
 
  • £10.4m revenue (2020: £90.6m) reflects multiple lockdowns across our geographies
  • Headline profit before tax £27.6m (2020: £19.4m)
  • This is after including £49.0m of insurance proceeds5 in respect of cancelled events. The income from insurance proceeds is recognised when confirmed, not in the period in which results from the cancelled events would have been recognised had they taken place.
  • Statutory profit before tax of £18.7m (2020: loss of £168.7m)
  • Adjusted net debt reduced to £92.4m (2020: £157.2m) following continued cost control, rights issue in May 2020 raising £126.6m and the receipt of insurance claims to date
  • Hyve maintains a strong liquidity position with visibility of significant cash headroom under our modelled scenarios

Strategic highlights

  • Ran 12 in-person events in Russia, Ukraine, China, Turkey and India during H1
  • Acquired Retail Meetup in December 2020 and ran successful Groceryshop Spring Meetup event in March performing 10% ahead of expectations
  • Completed exit of Central Asia with disposal of Kazakhstan portfolio - 25 non-core, regionally focused events
  • Portfolio now consists of 75 market-leading, bigger, better events (100 pre-pandemic)
  • Successfully secured confirmation of £49.0m of insurance proceeds in the first half of the year. An additional £13.9m has been confirmed since the period end. Including £22.0m confirmed in FY20, total insurance proceeds are now £84.9m:
    • £56.3m for FY20 events (policy cap: £62.0m)
    • £28.6m for FY21 events (policy cap: £50.0m)

Accelerating omnichannel

  • Evolving our in-person offering via facilitated meetings
    • Carrying out trials in FY21 to rollout facilitated meetings prior to launching at BETT, Spring Fair, Mining Indaba and Autumn Fair in FY22
  • Monetising our offering online
    • Secured acquisition of Retail Meetup in December 2020 for initial consideration of £18.5m, with an earnout valued at £3.4m at acquisition, to accelerate omnichannel strategy
    • A first of its kind digital networking format and technology with proven monetisation adding four high quality digital events
    • 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 cater to customer needs and be monetised
  • Ran more than 80 virtual events, of varying formats, during the first half to keep our customers engaged and connected with their communities online

Outlook

  • Hyve is currently trading between the two modelled scenarios presented in December 2020, "Recovery"6 and "East/West"7
  • In either scenario, Hyve maintains its strong liquidity position and has visibility of significant cash headroom
  • Our outlook for net debt at the year end remains in the range of £100-120m, even having completed the acquisition of Retail Meetup in December
  • With restrictions remaining on international travel and lockdowns still ongoing in certain markets, disruption to the event schedule continues
  • The Group is encouraged by the pace of vaccine rollouts in countries such as the United Kingdom and United States
  • While the near-term outlook remains fluid, Hyve is cautiously optimistic as it continues to see strong pent-up demand for its market-leading events through continued strong rollover of customer deposits and sales
  • Hyve expects a gradual return of customer participation as international travel resumes and restrictions are lifted
> Download the full report (PDF format)
> View interim results presentation (PDF format) 

1. Headline profit before tax is defined as profit before tax from continuing operations and adjusting items, which include amortisation of acquired intangibles, impairment of goodwill, intangible assets and investments, profits or losses arising on disposal of Group undertakings, restructuring costs, transaction and integration costs on completed and pending acquisitions and disposals, tax on income from associates and joint ventures, gains or losses on the revaluation of deferred/contingent consideration and on equity option liabilities over non-controlling interests, and imputed interest charges on discounted equity option liabilities – see note 3 to the condensed consolidated interim financial statements for details.
2. Headline diluted earnings per share is calculated using profit attributable to shareholders from continuing operations before adjusting items – see notes 3 and 6 to the condensed consolidated financial statements for details. The weighted average number of shares used for basic and diluted and headline basic and diluted earnings per share for March 2020 has been restated as a result of the share consolidation and rights issue which took place during 2020, in order to provide a comparative measure. As a result, basic and diluted and headline basic and diluted earnings per share for March 2020 have also been restated.
3. Adjusted net debt is defined as cash and cash equivalents after deducting bank loans. This is therefore prior to any lease liabilities recognised on the balance sheet.
4. Results from continuing operations only. Results for the six months to 31 March 2020 and year ended 30 September 2020 have been restated throughout the Interim Results to this effect.
5. The gross proceeds from insurance claims under the Group’s cancellation insurance policies are recognised in the income statement when the receipt of the proceeds is virtually certain. Of the £49.0m recognised in the period, £34.2m is in respect of FY20 events cancelled in the prior year and £14.8m in respect of FY21 events.
6. 'Recovery' scenario is our base case and 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.
7. East/West' scenario is our downside case and assumes that no Western events take place throughout the year.


 
Enquiries:
Mark Shashoua, CEO / John Gulliver, CFOO Hyve Group plc 020 3545 9000
Charles Palmer / Emma Hall / Chris Birt / Jamille Smith FTI Consulting 020 3727 1000