Arena Events Group (ARE)

Sector:

Tourism and Leisure Services

Index:

FTSE AIM All-Share

19.50p
   
  • Change Today:
      0.25p
  • 52 Week High: 70.25
  • 52 Week Low: 16.50
  • Currency: UK Pounds
  • Shares Issued: 152.71m
  • Volume: 116,033
  • Market Cap: £29.78m
  • RiskGrade: 518

Arena buys The Structure Group assets and rest of Hong Kong operation

By Josh White

Date: Thursday 27 Sep 2018

LONDON (ShareCast) - (Sharecast News) - Arena Events Group has expanded its product portfolio with the acquisition of the UK and Middle East temporary structures business from the Structure Group of Companies (TSG), it announced on Thursday.
The AIM-traded firm said the acquisition would bring TSG's UK and Middle East product, staff and contracts into the group, with its core product range including a steel frame panel system, known as the 'TSG Heavy Deck'.

It said the product could be utilised for temporary showrooms, viewing decks, multi-story structures, mezzanines and temporary modular buildings which were unlike traditional tent structures.

Arena already owned some TSG product in the Middle East, which had been used for several high-profile events, including the Abu Dhabi Golf Championships this year.

The acquired business had a "wide range" of customers in the UK, including Honda and Tesla at the Goodwood Festival of Speed, the board said.

It explained that the total consideration payable was £1.35m, paid in cash at completion, and funded from existing cash resources.

The acquisition was in line with Arena's growth strategy of complementary product expansion, and would reportedly strengthen the company's offering to existing clients as well as attract new clients.

In the last 12 months, it was estimated that the acquired assets and contracts generated EBITDA of around £0.25m and profit before tax of about £0.15m.

Arena also announced that is had exercised its option to acquire the remaining 49% shareholding of its Hong Kong subsidiary, Arena Hong Kong.

It said Arena Hong Kong provided temporary structures to a number of major events in the special administrative region, including the Kong Hong Rugby 7's, the Hong Kong Open golf, Formula E and the Art Central exhibition.

The consideration for the Arena Hong Kong transaction was £0.9m, paid in cash at completion and funded from existing cash resources.

In the 12 months to 31 December 2017, Arena Hong Kong achieved EBITDA of £0.35m and profit before tax of £0.3m.

The book value of fixed assets in the company as at 31 December was £0.4m.

That transaction, together with the recent acquisition of Ironmonger Group in Hong Kong,, meant that the Arena Group now had "full control" and exclusive rights to deliver and operate the hospitality for the Hong Kong Rugby 7's for the next five years.

"TSG's products and expertise will assist the group in delivering innovative temporary structures and help deliver further growth within this sector," said Arena group chief executive officer Greg Lawless.

"We are delighted with the opportunity to bolster our services and better serve the increased demand for innovative temporary structures in the UK and MEA."

Email this article to a friend

or share it with one of these popular networks:


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 19.50p
Change Today 0.25p
% Change 1.30 %
52 Week High 70.25
52 Week Low 16.50
Volume 116,033
Shares Issued 152.71m
Market Cap £29.78m
RiskGrade 518

ARE Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
91.85% above the market average91.85% above the market average91.85% above the market average91.85% above the market average91.85% above the market average
94.74% above the sector average94.74% above the sector average94.74% above the sector average94.74% above the sector average94.74% above the sector average
Price Trend
89.99% below the market average89.99% below the market average89.99% below the market average89.99% below the market average89.99% below the market average
87.34% below the sector average87.34% below the sector average87.34% below the sector average87.34% below the sector average87.34% below the sector average
Income
93.93% above the market average93.93% above the market average93.93% above the market average93.93% above the market average93.93% above the market average
92.00% above the sector average92.00% above the sector average92.00% above the sector average92.00% above the sector average92.00% above the sector average
Growth
52.09% above the market average52.09% above the market average52.09% above the market average52.09% above the market average52.09% above the market average
66.23% above the sector average66.23% above the sector average66.23% above the sector average66.23% above the sector average66.23% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

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 19-Sep-2019

Time Volume / Share Price
16:35 14,999 @ 19.50p
16:17 5,000 @ 18.85p
15:55 5,357 @ 18.85p
15:48 8,000 @ 18.24p
15:15 10,000 @ 18.50p

ARE Key Personnel

CEO Gregory Malcolm Lawless
Finance Director Piers Leigh Stuart Wilson
CEO Chris Morris

Top of Page