(Alliance News) - Hyve Group PLC on Wednesday said it expects to report a plunge in revenue for financial 2020, adding that Andrew Beach will step down as chief financial officer at the end of this month.
The London-based exhibitions and conferences organiser said revenue for its financial year ending September 30 will be around GBP105 million, down 52% year-on-year from GBP221 million, with the figure reflecting a very strong start to the year but a significantly reduced event programme since March as a result of the Covid-19 pandemic.
More positively, it noted that, following the relaxation of government restrictions in some of the regions in which it operates, it has safely run a number of domestic events in China and Ukraine. It added that its first Russian events since lockdown commenced Tuesday, resulting in the company running a total of 12 face-to-face events in the fourth quarter of its financial year, delivering around GBP9 million of revenue.
However, Hyve cautioned that while restrictions in certain markets are starting to be lifted, the timing and speed of the recovery of the global events industry remains highly uncertain. Travel restrictions are expected to remain in place for some time, with further spikes in infections and government lockdowns still a possibility.
The London-based company said that since July, it has received a further GBP9.1 million from its insurers in relation to cancelled and postponed events, taking the total recoveries secured to date to GBP22.0 million. It noted it has an overall aggregate cap in respect of all insured events to October 31 of GBP62 million, adding that the following years' policy has a cap of GBP50 million.
Separately, Hyve said the cost saving programme it announced in May, targeted GBP9 million of income statement savings in the current financial year, and GBP40 million for financial 2021. It highlighted it now expects to exceed the original financial 2020 savings target by around GBP30 million.
It added it also is targeting increased savings in financial 2020 by introducing additional restructuring measures, which include the merging of its UK and Global Brands operations as well as the further streamlining of its central headquarters overheads. The measures are expected to result in the company exceeding its financial 2021 savings target by between GBP5 million and GBP10 million on an annualised basis to a total of between GBP45 million and GBP50 million.
During the current quarter, the company sold its entire event portfolio in Azerbaijan and Uzbekistan for a total of up to GBP9.5 million, as events in the regions were not expected to resume for some time due to the pandemic.
Finally, Hyve said Chief Financial Officer Andrew Beach will step down on September 30, to be succeeded by John Gulliver who has been chief operating officer since October 2017. Gulliver was previously divisional CFO at business events organiser Ascential PLC. Prior to that, he was finance director at provider of media monitoring and evaluation services Precise Media Group Holdings Ltd from 2008 to 2010.
As part of the company's cost-saving programme, Gulliver will take on a newly-formed combined role of CFO and COO, effective from October 1. Financial Controller James Warsop will be promoted to finance director.
Shares in Hyve were trading 3.4% lower at 65.00 pence each on Wednesday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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