Hyve shares surge 15% as group sees revenues jump sharply

Hyve Group shares rose more than 15 percent today after the events company revealed it experienced a faster-than-expected recovery over the past year.

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

The group expects sales for the year to September 30 to be around £122 million, excluding operations in Ukraine, Russia and Turkey, up from £22 million a year ago.

Hyve said it had a full event schedule during the reporting period, but confirmed there was still significant disruption to event schedules in China.

The number of events executed represented a recovery of more than 85 percent on a pro forma basis compared to the pre-pandemic financial year to September 2019. Excluding China, this figure rises above 90 percent.

Event demand continues to rise despite the macro environment, Hyve said, highlighting the increased emphasis on its “omnichannel” strategy since the pandemic, with 14 technology-enabled programs during the year, compared to four in the previous year.

Hyve shares rose more than 15 percent today and rose 9 percent or 4.50p to 54.50p this afternoon.

It was also said that positive trading momentum continued as the group entered its current fiscal year, with advance bookings of around £68m giving it confidence for the year ahead.

Looking ahead, the group said: “Uncertainty remains over running events in China, but the Group notes the easing of Covid-19-related rules by region and currently plans to hold a full schedule of events in China in FY23.” . China represents less than 10 percent of the group’s turnover.’

Hyve also confirmed that it had entered into an agreement to sell its Turkish company, Hyve Fuarcılık Anonim Şirketi, and its subsidiaries to ICA Limited for up to £8 million.

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

Mark Shashoua, Hyve’s boss, said: ‘It is clear that our business has now almost fully recovered from the turbulence of the past two years, and in many cases we are pleased to have achieved significant growth compared to pre- Covid Performance.

“The continued growth in customer like-for-like spend strengthens our strategy to focus only on market-leading events as customers clearly focus their marketing budgets on key events in their industry.”

He added: ‘Looking ahead, we must of course remain vigilant for the macroeconomic challenges, but we are optimistic about the next 12 months and this optimism is supported by strong advance bookings and a rise in like-for-like customer spending.

“We are entering FY23 with a low-risk and concentrated portfolio of industry-leading events, clear opportunities for continued growth – both through analog and digital – and our ever-present commitment and energy to make it happen.”