(Alliance News) - Arena Events Group PLC on Friday said it decided against a final payout as it grapples with the economic bite of the Covid-19 pandemic.
Shares in the company were 16% lower at 5.70 pence each in London on Friday morning.
The temporary event structures firm reported on its final results for the 15 months to March 31. It changed its year-end date from December 31.
During the 15-month period, revenue climbed 36% to GBP183.2 million from the GBP135.0 million it achieved in 2018.
Its pretax loss widened however, to GBP23.0 million from GBP1.6 million. Administrative costs surged by 79% to GBP75.0 million from GBP41.8 million and it reported exceptional costs of GBP17.5 million, up sharply from GBP5.4 million.
"The results to the end of March 2020 reflect a solid performance with no new acquisitions during the period, a focus on consolidating the 2018 acquisitions as well as delivering operational improvements in both the US and UK divisions," Chief Executive Officer Greg Lawless said.
Arena Events chopped its payout by 83% to 0.25 pence per share, from 1.5p. It opted not to make a final payout "in the light of Covid-19 and the need to maximise balance sheet flexibility".
Lawless added: "The progress made over the last eighteen months meant that we were looking forward to a record performance in the 2020/21 financial year, based on a strong, efficient operational base as well as the prospects of delivering a number of very high-profile events, including the Ryder Cup, the Tokyo Olympics alongside our roster of longstanding, annual contracted events such as Wimbledon and the PGA Tour.
"However, since March, the world for mass gatherings at sporting events has been decimated with no large-scale gatherings of any kind anywhere in the world since April - and these restrictions are likely to continue for the most part of 2020."
Sporting events are a large part of the company's focus. During the 15-month period, it delivered seating and furniture to events such as the Cheltenham Festival, a major horse racing meet in the UK, the 2019 Wimbledon tennis championships and also secured temporary seating pacts at the 2019 Rugby World Cup in Japan and Formula One's Abu Dhabi grand prix.
"There is no doubt that 2020 will be recognised as the most challenging environment the business world has experienced for decades," Arena Events said.
"We do not know when the event world will return to normal but when it does, Arena is well placed to continue as an industry leader."
By Eric Cunha; ericcunha@alliancenews.com
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