Arena Events Group (ARE)

Sector:

Tourism and Leisure Services

Index:

FTSE AIM All-Share

25.50p
   
  • Change Today:
      0.75p
  • 52 Week High: 40.25
  • 52 Week Low: 16.50
  • Currency: UK Pounds
  • Shares Issued: 152.71m
  • Volume: 142,008
  • Market Cap: £38.94m
  • RiskGrade: 260

Sunday share tips: Saga, Arena Events, G4S

By Digital Look

Date: Monday 26 Feb 2018

LONDON (ShareCast) - (ShareCast News) - Saga shares were branded 'avoid' in the Sunday Times' Inside the City column, even though its debt has been shrinking and its profits rising, in contrast with former stablemate, the AA. The share price has also recently been on the way down after warning on profits in early December due to higher costs and "more challenging trading" in insurance broking, with growth in underlying profit before tax expected to be between 1% and 2% for the year to 31 January 2018.
Saga will now be accounting for revenues more conservatively, with £10m more to be spent on 'customer acquisition' but £10m of annualised savings spied for the new financial year. All in all, the changes are expected to result in underlying profit before tax for next year being approximately 5% lower than the current year.

Since floating, management's efforts to modernise and shift away from capital-intensive underwriting, setting out last March a new capital-light strategy to use Saga's deep knowledge of its most loyal customers to enable it to increase margins by acting as a broker of various third-party services under the name of 'Saga Possibilities'. This, the column said, was "proving much harder than it expected" amid intense competition and will "require a lot of patience".

Shares in Arena Events were tipped as a 'buy' by Midas in the Mail on Sunday. The company, which listed on the junior market last July at a price of 55p, helps with the organisation of top sporting fixtures such as the London Marathon, Cheltenham Festival and music festivals from Glastonbury to the Dubai Jazz Festival, as well as setting up marquees and ice rinks for other annual events in sites near its offices in America, Hong Kong, Kuala Lumpur and the Middle East. The business is in creating 'temporary event environments', providing large-scale event project management and specialist event equipment.

Management want to expand into new geographies, including the US West Coast and selling more complete tents-to-teaspoons packages. Arena is also keen to fill out its calendar with more events in Dubai and Kuala Lumpur and in music festivals and cold-weather activities. Results for 2017 are due to be announced in April, with analysts forecasting revenues of £100m, profits of £4.5m and a 1.4p dividend per share. For 2018, sales are predicted to climb to £107m, with profits jumping to almost £6m and a dividend of 1.8p.

G4S is "one outsource worth buying", said Questor in the Sunday Telegraph.



Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only and not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

ARE Market Data

Currency UK Pounds
Share Price 25.50p
Change Today 0.75p
% Change 3.03 %
52 Week High 40.25
52 Week Low 16.50
Volume 142,008
Shares Issued 152.71m
Market Cap £38.94m
RiskGrade 260

ARE Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
64.80% above the market average64.80% above the market average64.80% above the market average64.80% above the market average64.80% above the market average
62.32% above the sector average62.32% above the sector average62.32% above the sector average62.32% above the sector average62.32% above the sector average
Price Trend
81.78% below the market average81.78% below the market average81.78% below the market average81.78% below the market average81.78% below the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average
Income
60.48% above the market average60.48% above the market average60.48% above the market average60.48% above the market average60.48% above the market average
28.57% above the sector average28.57% above the sector average28.57% above the sector average28.57% above the sector average28.57% above the sector average
Growth
53.04% above the market average53.04% above the market average53.04% above the market average53.04% above the market average53.04% above the market average
74.29% above the sector average74.29% above the sector average74.29% above the sector average74.29% above the sector average74.29% above the sector average

ARE Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-19 13-Jun-19
Paid 01-Nov-19 08-Jul-19
Amount 0.25p 1.00p

Trades for 17-Jan-2020

Time Volume / Share Price
17:06 5,000 @ 25.50p
16:46 20,000 @ 24.91p
16:19 2,008 @ 25.20p
10:52 75,000 @ 25.50p
10:51 75,000 @ 25.50p

ARE Key Personnel

CEO Gregory Malcolm Lawless
CFO Steve Trowbridge

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