(Alliance News) -Â Arena Events Group PLC on Monday said it expects results in line with expectations for its soon-to-end financial year, but it is unable to give guidance for the year ahead due to Covid-19.
Arena Events provides temporary structures, crowd control barriers and other products for event organisers, including installing ice rinks.
Trading in the two months to the end of February was in line with management expectations, the firm said.
Since late February, Covid-19 has spread more extensively, the company noted, but "almost all" of the larger events serviced by Arena in February and March have been delivered, including the Cheltenham horse racing festival and the Vice Music Festival in Saudi Arabia.
"Therefore, the impact on the results for the 15 months to the end of March will not be significant and we expect to report results broadly in line with expectations," said Arena.
The global situation has changed "significantly" over the past few days, though, with a "wider pattern of larger event cancellations" amid uncertainty over the likely duration of the disruption.
"Whilst only a small number of Arena's larger events have been cancelled or postponed to date, there is now a strong likelihood that a number of events in our first financial quarter will be cancelled or postponed," the company said.
Arena said it has implemented a "significant" cost-cutting programme, including temporary lay-offs, reduced working weeks and salary reductions, including unpaid leave.
"Given the high level of uncertainty around future events in the current environment, we are unable to give any guidance for the 12-month trading period to the end of March 2021. We will provide further market updates as appropriate," said Arena.
It added it is in talks with a potential investor, who was unnamed, to "bolster" its cash resources via a share issue at a premium to its current price. This could "support the business during this significant time of uncertainty".
"There can be no certainty that this will proceed, nor to the terms of this proposed fundraising and a further announcement will be made as and when appropriate," Arena said.
Shares in Arena were down 23% at 6.40 pence in London on Monday.
By Lucy Heming;Â lucyheming@alliancenews.com
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