Hyve Group PLC Coronavirus update (1133F)
05 Mars 2020 - 8:00AM
UK Regulatory
TIDMHYVE
RNS Number : 1133F
Hyve Group PLC
05 March 2020
5 March 2020
Hyve Group plc
("Hyve" or the "Group")
Coronavirus update
Hyve has been taking decisive and rapid management actions to
mitigate the potential impact to our business due to the current
situation related to the coronavirus outbreak. The Group is closely
following and regularly monitoring the advice from the World Health
Organization ("WHO") as well as regional and local government
advice and continues to assess the situation carefully. The health
and safety of our employees, customers and exhibitors continues to
be of the utmost importance, as does the ability to continue to run
events that deliver an outstanding return on investment for our
customers.
The events industry is experiencing significant disruption
across multiple geographies and sectors with many events having
been cancelled or postponed across Asia, Europe and the USA.
At Hyve, each region in which we operate has reacted differently
and, in some instances, governments and authorities in impacted
countries have placed certain restrictions on travel and on large
gatherings to contain the spread of the virus, as well as companies
implementing restrictions on business travel by their
employees.
In light of recent developments and the continued spread of
coronavirus, we are announcing the impact that this is having on
the Group and the actions we have taken:
-- Postponement of Asian events - we have successfully managed
to postpone four March events in Asia to later in our current
financial year. Bett Asia will now take place in June, CWIEME
Shanghai in July, BreakBulk Asia in August and CPHE (Shanghai's
hosiery exhibition) in August. Unless the impact of the virus lasts
until the rescheduled dates, these events will all still take place
within our 2020 financial year;
-- Chinese exhibitor participation in our non-Chinese events
("outbound sales") - recent travel restrictions, in particular for
many of our Chinese customers who are either unable to leave their
region of China or unable to enter certain countries, have started
to adversely impact revenues at a number of our events; and
-- Postponement of Shoptalk and Groceryshop - Shoptalk 2020,
previously planned for March, has been postponed to September and
will therefore remain in Hyve's 2020 financial year. While there is
not currently a restriction on large events in the USA, it is clear
that a significant number of US companies are restricting or
discouraging all business travel for their employees, including
conference attendance. This is impacting the number of key
customers and speakers now able to attend and we consider, at this
time, that it is not feasible to deliver a high-quality event in
line with customer expectations. Moving Shoptalk to September
preserves the quality of this year's event. As a result, we have
taken the decision to move Groceryshop to March 2021 to avoid a
clash with Shoptalk.
Other than the specific examples above, all of our other events
are currently expected to go ahead as planned. The situation is
evolving on a daily basis, but Hyve continues to work hard to
mitigate the impact that the coronavirus outbreak is having on our
business. We have instigated global work streams that report daily
and we are constantly scenario planning for any potential future
impacts to our business. We continue to take into account any
updates that are received either from the WHO or regional
governments. We have also implemented additional precautions across
all of our events on a global basis and are providing regular
updates to our stakeholders via our websites.
On the basis of what we know today, we currently estimate a
one-time adverse impact in FY20 of between GBP17m and GBP19m on the
Group's revenue and between GBP16m and GBP18m on Group profit in
the current financial year, as a result of the issues set out
above.
The current estimated financial impacts are as follows:
-- Postponement of Asian events - c. GBP1m on both revenue and profit;
-- Outbound sales - c. GBP7m to GBP8m revenue and c. GBP6m to GBP7m profit; and
-- Postponement of Shoptalk and Groceryshop - c. GBP9m to GBP10m
on both revenue and profit, after incurring GBP4m to GBP5m of
duplicative costs already incurred on the postponed editions that
cannot be recovered.
The above estimates are based on the current situation and
therefore could change if the situation improves or worsens. As
things currently stand, none of the above impacts are expected to
have a significant impact on the Group's results beyond the current
financial year. We anticipate that the new date for Groceryshop
will remain in future years and therefore do not expect to run the
event twice in financial year 2021.
The Group has already booked c. GBP200m of revenue for the
current financial year, continues to be highly cash generative and,
following the refinancing that the Group undertook in December, has
material headroom available on the debt facility and expects to
operate within the covenants.
The Board is confident that the measures put in place will
enable Hyve to protect its shows, customers, colleagues and
communities to the fullest extent possible.
For further information please contact:
Hyve Group plc +44 (0)20 3545
Mark Shashoua / Andrew Beach / Melissa McVeigh 9000
FTI Consulting +44 (0)20 3727
Charles Palmer / Emma Hall / Chris Birt 1000
About Hyve Group plc
Hyve Group plc is a next generation global events business whose
purpose is to create unmissable events, where customers from all
corners of the globe share extraordinary moments and shape industry
innovation. Hyve Group plc was announced as the new brand name of
ITE Group plc in September 2019, following its significant
transformation under the Transformation and Growth (TAG) programme.
Our vision is to create the world's leading portfolio of
content-driven, must-attend events delivering an outstanding
experience and ROI for our customers.
Where business is personal, where meetings move markets and
where today's leaders inspire tomorrow's.
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