Hyve announces financial results for the six months to 31st March 2020.



Coronavirus update
  • Decisive management action has been taken to reduce costs and manage cash and liquidity.
  • Underwritten rights issue to raise £126.6m separately announced today, to provide security through the COVID-19 crisis and support the Group’s long-term success.
  • Waivers obtained for the leverage ratio and interest cover covenants up to and including March 2022 and additional liquidity of £35m secured through deferrals of the next two term loan repayments until December 2023, previously due in November 2020 and November 2021, conditional on the successful completion of the rights issue. 
  • Postponement Plan has moved 30 events to later this financial year, 18 are postponed to FY21 and 13 have been cancelled in this financial year.
  • Close collaboration with customers to ensure attendance at events when they are rescheduled.
  • Continued productive dialogue with venue owners to defer and rollover costs for postponed or cancelled events.
  • Accelerating omni-channel strategy to connect with customers online with Shoptalk leading the way.
Financial highlights
  Six months to
31 March 2020
Six months to
31 March 2019
     
Volume sales 308,500 m2 354,300 m2
Revenue £96.3m £107.8m
Headline profit before tax1 £19.8m £24.5m
(Loss) / Profit before tax £(168.3)m £1.9m
Headline diluted earnings per share2 2.0p 2.3p
Diluted earnings per share (21.6)p (0.1)p
Interim dividend per share Nil 0.9p
Adjusted net debt3 £157.2m £108.9m
 
  • Revenue of £96.3m (2019: £107.8m), impacted by international government restrictions to control coronavirus.
  • Despite the impact of coronavirus, revenue increased 1% on a like-for-like basis4 and by 3% including biennials and timing differences.
  • Headline profit before tax of £19.8m (2019: £24.5m), due to event postponements and cancellations as a result of coronavirus.
  • Statutory loss before tax of £168.3m (2019: profit of £1.9m), after £166.8m of non-cash impairments as a result of the coronavirus outbreak.
  • Cash conversion5 of 137% (2019: 102%), owing to strong cash collection pre-coronavirus but lower profits due to event postponements and cancellations in March.
  • Dividends suspended and future dividends will be kept under review and subject to bank waiver restrictions.
  • £110.1m acquisition of Shoptalk and Groceryshop in December 2019, two US-based market-leading events focused on e-commerce for retail and grocery. Shoptalk did not take place in the period due to coronavirus and Groceryshop has been cancelled this financial year, with the next event to be run in FY21.
  • Adjusted net debt increased from £108.9m to £157.2m following the acquisition of Shoptalk and Groceryshop.
Mark Shashoua, CEO of Hyve Group plc, commented:
 
“We started this year in a very strong position. We reported strong like-for-like growth in Q1 and added two market-leading products, Shoptalk and Groceryshop to our portfolio.
 
When the pandemic began, we initiated Project Fortress – Hyve’s immediate response to COVID-19 – leaving no stone unturned. We responded rapidly and decisively by rescheduling events, reducing our costs, managing cash and supporting our customers and people through this crisis. In these unprecedented circumstances we have done everything we can and at pace to protect the business. Today we have strengthened our financial position through a £126.6m fully underwritten rights issue, to provide additional security through this crisis and to support the long-term success of the business.
 
Market-leading events act as a key trading platform for many industries and will play a vital role in reigniting economies, and we are working closely with customers, government and industry bodies to make this happen. We have also accelerated our focus on building our omni-channel capabilities driven by the Shoptalk and Groceryshop acquisition. Digital will not replace face-to-face events, but it complements them with online activity that supports our customers year-round and maximises the profile of our brands.
 
Whilst the immediate impact of temporary government restrictions has been severe, we believe these are short term challenges. Our strategy of building a portfolio of market-leading events and the investment made over the last three years puts us in a strong position when we exit this crisis.”

> Download the full report (PDF format)
> View Interim Results Presentation (PDF format)
> Rights issue
 
1.
Headline profit before tax is defined as profit before tax 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 financial statements for details.
2.
Headline diluted earnings per share is calculated using profit attributable to shareholders before adjusting items – see notes 3 and 6 to the condensed consolidated financial statements for details.
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.
Like-for-like results are stated on a constant currency basis – translating the current year results at their equivalent reported rates in the comparative period – after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period. For clarity, this excludes all:
-       Biennial events;
-       Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);
-       Launches;
-       Cancelled or disposed of events that did not take place under our ownership in the current year;
-       Acquired events in the current period; and
-       Acquired events in the comparative period that didn’t take place under our ownership in the comparative period (i.e. they took place pre-acquisition).
See ‘Trading highlights and review of operations’ for further detail.
5.
Cash conversion is defined as cash generated from operations before net venue utilisation (advances and prepayments to venues less utilisation of venue advances and prepayments) and the cash impact of the adjusting items included in the definition of headline profit before tax, expressed as a percentage of headline profit before tax adjusted for net finance costs and non-cash profits, including foreign exchange gains/losses, depreciation and amortisation.
 



For further information please contact:
 
Hyve Group plc  
Mark Shashoua / Andrew Beach +44 (0)20 3545 9400
FTI Consulting  
Charles Palmer / Emma Hall / Chris Birt / Jamille Smith +44 (0)20 3727 1000

> Download the full report (PDF format)
> View Interim Results Presentation (PDF format)
> Rights issue

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