Arena Events Group Plc shares (LON: ARE) opened 24.55% higher after the group released a trading update for the six months ended 30 September 2020.
Due to Corona restrictions and the ban on mass gatherings, revenue fell from £88.3m in 2019 to £42.8m. Gross profit fell from £24.9m to £14.8m.
Despite the tough trading environment, Arena Events Group Plc protected significant overhead cost reductions, which was 10.3%.
In the UK and Europe, the group delivered numerous structures for temporary Corona medical facilities and testing centres.
The group has also signed a multi-million pound contract extension for the rental of 26,000 seats to the Tokyo 2020 Olympics, which will now be held in 2021.
Greg Lawless, the chief executive of Arena Events Group Plc, commented:
“We are at the epicentre of the economic destruction that the COVID-19 pandemic is causing to the hospitality sector worldwide with virtually no live audience participation at any event over the last six months. However we have been proactively working to reduce the impact on our business as much as possible by securing extensive non-event revenues, reducing our cost base and raising funds from both our bank, HSBC, and shareholders to be able to put the Group in a solid financial position to trade through these very difficult times and emerge in a stronger, more cost efficient position.
“The fact that we have delivered a positive EBITDA out-turn for these first six months, taking everything into consideration, reflects a robust performance that demonstrates the benefits of a global platform and, in particular, the tremendous tenacity, agility and positive attitude of the senior executives and their teams across all of our business units.
“No dividend will be paid in relation to FY21 as the Board prioritises the optimisation of cash resources. Audited full year results are expected to be released in early July 2021.”