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Hyve shares surge 15% as group sees revenues jump sharply

Rising: Hyve Group saw its share price rise by more than 15% today

Shares of Hyve rise 15% as event group revenue rebounds strongly thanks to end of Covid-19 restrictions

  • Shares of Hyve Group rose more than 15% earlier in the day in a strong trading update
  • But the group said operations were still disrupted in China due to restrictions

Shares of Hyve Group rose more than 15% today after the events company revealed it had enjoyed a faster than expected recovery over the past year.

The London-listed company said the speed of its recovery had “exceeded expectations” and, combined with strong comparable customer spending, demonstrated that demand for “market-leading, high-quality events” continued to grow.

The group expects its revenue to September 30 to be around £122m, excluding operations in Ukraine, Russia and Turkey, up from £22m a year ago.

Rising: Hyve Group saw its share price rise by more than 15% today

Rising: Hyve Group saw its share price rise by more than 15% today

Hyve said it held a full schedule of events during the reporting period, but confirmed there were still considerable disruptions to event schedules in China.

The number of events held represented a recovery of more than 85% on a pro forma basis compared to the pre-pandemic year to September 2019. Excluding China, this figure exceeds 90%.

Demand for events continues to rise despite the macro environment, Hyve said, noting the increased focus on its “omnichannel” strategy since the pandemic, with 14 technology programs executed during the year, compared to four l ‘last year.

Shares of Hyve jumped more than 15% today and are currently up 13.70% or 6.85p to 56.85p, after falling almost 50% in the past year.

The positive business momentum is also believed to have continued as the group begins its current financial year, with forward bookings of around £68m giving it confidence for the year ahead.

Looking ahead, the group said: “Uncertainty surrounding hosting events in China remains, but the group notes a relaxation of Covid-19 related rules region by region and currently plans to hold a full schedule. of events in China during the financial year 23. China represents less than 10% of the Group’s revenues.

Hyve has also confirmed that it has reached an agreement to sell its Turkish business, Hyve Fuarcılık Anonim Şirketi, and its subsidiaries for up to £8 million to ICA Limited.

The company will receive £2 million on completion, less customary working capital adjustments, and between £4 million and £6 million of deferred consideration, payable over the six-year period to December 2028.

Mark Shashoua, the boss of Hyve, said: “It is clear that our business is now almost fully recovered from the turmoil of the past two years, and in many cases we are pleased to have recorded significant growth compared to to pre-Covid performance. .

“Continued like-for-like client spend growth reinforces our strategy to focus only on market-leading events as clients clearly direct marketing budgets to key events in their industries.”

He added: “Looking ahead, we must of course remain vigilant/aware of macro challenges, but we are optimistic for the next 12 months and this optimism is underpinned by strong forward bookings and increased comparable customer spending. .

“We enter FY23 with a lean and focused portfolio of market-leading events, clear opportunities for continued growth – both analogue and digital – and our all-pervasive commitment and energy to make it a reality.”

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