Hyve Group, the renowned global events organizer, has provided its shareholders with a positive trading update, followed by further details of its progress and a strategic move in Turkey. The company’s trading results for the year ending September 30 indicated a “full revenue recovery” in the second half, setting the stage for a strong trading trajectory going into FY23. Notably, Hyve Group achieved revenue of approximately £122 million for FY22, a significant increase compared to the restricted revenue of £22 million experienced during the pandemic. These figures exclude revenues from discontinued operations in Russia, Ukraine, and Turkey. Despite the challenges posed by the pandemic, the company successfully executed a full schedule of events outside China in FY22.
When compared to FY19 on a pro-forma basis, Hyve Group exhibited a remarkable recovery rate of over 85%, or over 90% when excluding China, where event schedules were disrupted. The speed of this recovery has surpassed expectations, highlighting the growing demand for top-quality market-leading events. Moreover, Hyve Group announced a return to positive headline EBITDA without insurance proceeds, showcasing another year of headline profitability with reduced reliance on insurance funds (which decreased from £65 million to £19 million in 2021).
Despite the obstacles presented by the Omicron variant in the first half of the year, revenue recovery in that period still reached around 75% compared to FY19 pro-forma revenues. This percentage increased to approximately 100% in the second half, even without the inclusion of the group’s events in China during the final quarter of the financial year due to Covid-related restrictions.
In addition to its promising trading update, Hyve Group unveiled plans to sell its subsidiary company, Hyve Fuarcılık Anonim Şirketi, along with its Turkish subsidiaries, for a sum of up to £8 million. The buyer, ICA (JV) Limited, will make an initial payment of £2 million upon completion, with an additional deferred consideration of £4-£6 million, payable over a six-year period based on the profitability of the Turkish business. The proceeds from this transaction will be allocated towards reducing Hyve Group’s net debt.
Mark Shashoua, the CEO of Hyve Group, expressed his satisfaction with the company’s recovery and growth following the turbulent times of the past two years. He emphasized the significance of focusing on market-leading events, which is evident from customer spending trends. The sale of the Turkish business represents another significant milestone in the company’s strategy of streamlining its portfolio and concentrating on market-leading events in advanced economies.
All in all, Hyve Group’s robust revenue recovery, positive trading trajectory, and strategic portfolio focus exemplify its commitment to the post-Covid recovery and growth of the events industry.
Useful Links:
1. Hyve Group Official Website
2. Pure London Official Website
