(Alliance News) - Arena Events Group PLC on Tuesday reported double-digit revenue growth in the first half of its current financial year, thanks to a strong performance in Saudi Arabia.
Arena Events provides temporary structures, crowd control barriers and other products for event organisers, including installing ice rinks.
It reported pretax profit of GBP4.1 million for the six months to the end of 2019 compared to a GBP1.4 million loss a year earlier, as revenue jumped by 16% to GBP92.7 million from GBP80.1 million.
Arena Events said headwinds from weaker markets in Hong Kong and Dubai, were broadly offset by growth in Saudi Arabia.
Meanwhile, both the UK and US markets were less buoyant than in previous years. However, cost pressures continue in both the US and UK, Arena Events said, from "tighter" labour markets leading to an increase in staff costs. The London event market has been softer than in prior years due to the general level of economic "nervousness" and political uncertainty.
"For the group as a whole, trading for the six-months to December has been solid," said Chief Executive Greg Lawless.
"Looking further forward, despite some concerns about the general trading environment in a number of markets, the group still expects to see revenue growth in the year ended March 2021 with the return of the US Open, the Ryder Cup, the Dubai Expo 2020 and further projects in Saudi Arabia," added Lawless.
Arena Events shares were trading 9.2% higher in London on Tuesday at 26.75 pence each.
The company changed its financial year-end to March 31 to better reflect the seasonality of the business. Thurs, it will report next results for 15-month period in early July.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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