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Hyve Group PLC on Tuesday swung to an interim loss on higher costs and lower insurance proceeds, despite a jump in revenue due as in-person events resumed.
The London-based events organiser swung to a pretax loss of £11.5 million in the six months to March 31, from a profit of £20.5 million a year before, as insurance proceeds for event cancellations fell to £10.6 million from £49.0 million. Further, the cost of sales multiplied to £39.2 million from £8.3 million.
Meanwhile, revenue jumped to £58.6 million from £5.0 million.
Hyve credited its revenue growth to the return of a pre-pandemic schedule of events, with the exception of China. Hyve ran a total of 21 in-person events in the period, which is more than doubled from seven events last year.
This excludes seven events it ran in Russia, up 40% from five events last year. In early April, the company announced that it entered a conditional agreement with Rise Expo Ltd for the disposal of its Russian business for £72 million.
Hyve said Covid-19 related restrictions continue to hurt domestic events in China and Chinese participation in its other events, as the pandemic is also hurting international travel.
Nonetheless, Hyve said that the ‘strong momentum’ seen in the first half continued into the second one.
The company expects to return to the level of operating profit margins achieved prior to the pandemic over the medium term.
‘Our in-person events are recovering faster than anticipated, with many having already fully recovered. Whilst there are clearly global economic and geopolitical headwinds, the Group is in a strong position with renewed confidence. This will serve Hyve well when navigating through any potential challenges,’ Chief Executive Mark Shashoua commented.
Hyve shares were trading 4.3% lower at 87.86 pence each in London on Tuesday around midday.
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