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Arena Events faces huge revenue losses from Wimbledon and golf cancellations

Revenue losses up to December, 2020, expected to be over £110mln, are barely offset by the £24mln made in April and May

Arena Events Group - Arena Events sees seismic change from lost revenue amid events cancellations
The firm was going to service the Tokyo Olympics

Arena Events Group PLC (LON:ARE) has said sales lost from the cancellations of events that it services, such as Wimbledon and The Open golf championship, are a “seismic change” for the company.

Revenue losses up to December, 2020, expected to be over £110mln, are barely offset by the £24mln made in April and May with contracts for temporary hospitals and drive through test centres, the company revealed as it reported an extended period of full-year results.

READ: Arena Events can carry on without Wimbledon or The Open after £9.5mln cash call

The temporary seating specialist said it is not sure whether there will be further cancellations of events beyond September or what the longer-term implications are for the event industry.

Following the consolidation of acquisitions made in 2018, the AIM-listed firm had planned for 2020 as a record year with deals signed for high-profile events, including the Ryder Cup and the Tokyo Olympics.

In the 15 months to March 31, 2020, Arena's revenue jumped by 36% to £180mln and its loss after tax widened 91% to £23mln. The period contains the usually quiet winter months and was compared to the 12 months to December 31, 2018.

Arena shares tanked by 20% to 5.4p on Friday morning.

Quick facts: Arena Events Group

Price: 5.015 GBX

AIM:ARE
Market: AIM
Market Cap: £12.42 m
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