The United Kingdom market closed higher on Thursday (on 7 th May 2020) before the bank holiday on 8 th May 2020. The market sentiments were encouraging with China’s export data. Meanwhile, the Bank of England indicated the worst economic slump in over 300 years. As the COVID-19 mayhem has significantly impacted economic conditions and customer demand globally, Companies have taken several initiatives (such as dividend cancellation, covenant waiver and boosting capital structure) to strengthen the financial position and liquidity. Meanwhile, two FTSE listed stocks from diverse industry – Hyve Group PLC (LON: HYVE) and Camellia PLC (LON: CAM) released their half-year FY2020 and full-year 2019 results, respectively. Following the financial updates, the price of HYVE tumbled 12.45 per cent whereas CAM surged 1.01 per cent (at the close of trade as on 7 th May 2020). Let’s take a glimpse over their business operations, recent regulatory updates and outlook in light of their latest financial and operational updates.
Hyve Group PLC (LON: HYVE) – Decisive response to the Outbreak to Protect and Prosper
Hyve Group PLC is a FTSE 250 listed company, which is engaged in the events business. The Company operates through 17 offices with over 1,200 employees and holds more than 130 events annually across geographies and industries. (Source: Company Website)
Strategy to Supplement Organic Growth with Acquisitions The Group has transformed itself into a scalable platform and next-generation events business through their Transformation and Growth Programme (TAG).
The Product led acquisitions such as Shoptalk and Groceryshop, has supplemented the organic growth with accretive growth.
The TAG programme has tripled the revenue per event with half number of events since it focusses on must-attend events.
The Company has become a global business over time as it is now striking a decent balance in the number of events into different geographies.
(Source: Half-Year Presentation, Company Website) Recent Key Developments – Reflecting several actions to cope up with COVID-19 disruption 7 th May 2020: Hyve Group announced that Prospectus has been published and approved by the Financial Conduct Authority for underwritten right issue of GBP 126.6 million and proposed share consolidation. Further, the Group announced covenant waivers and deferred the loan payments of GBP 35 million until December 2023.
8th April 2020: Besides, 33 events already postponed to later this year, The Group has postponed additional 12 events to FY21. Moreover, as a part of a […]