Arena Events Group PLC Acquisition of Events Solution Limited (0587S)
June 21 2018 - 1:00AM
UK Regulatory
TIDMARE
RNS Number : 0587S
Arena Events Group PLC
21 June 2018
21 June 2018
Arena Events Group plc
Arena Acquires Events Solution Limited
Arena Events Group plc (AIM: ARE, 'Arena' or 'the Group'), is
pleased to announce it has further expanded its UK product
portfolio with the acquisition of specialist barrier and fencing
company Events Solution Limited (the "Company").
The acquisition, with total consideration of GBP2.5 million,
will see the Worksop-based company integrated into Arena's current
UK business. Events Solution's core product range includes
pedestrian barriers, Heras fencing, front of stage and Metropolitan
Police barriers, as well as gantries and staging. The Company has a
wide range of customers including British Cycling, Live Nation,
music festivals and local councils, with no single customer greater
than 10% of annual sales. The Company generated revenue of GBP1.5
million in the year ended 31 March 2018 and generated pre-tax
profit of GBP0.4 million.
The consideration will be split with GBP2.2 million paid on
closing (GBP1.75 million in cash and GBP0.45 million by way of an
issue of new equity at a price of 62 pence per share) and deferred
consideration of GBP0.3 million paid over the next 12 months.
This latest acquisition is in line with Arena's growth strategy
of providing a comprehensive suite of services to event organisers
and will significantly strengthen the Group's offering to existing
clients as well as help attract new clients. Events Solution will
continue to operate out of its existing Worksop base and will also
expand to offer products from Arena's existing Cambridgeshire hub
as of next year.
Application has been made for the 726,000 new Ordinary Shares to
be admitted to trading on AIM. The new Ordinary Shares will rank
pari-passu with existing Ordinary Shares and it is expected that
Admission will occur at 8.00 a.m. on or around 22 June 2018.
Following Admission, Arena's issued ordinary share capital will
comprise 117,879,481 Ordinary Shares, of which none are held in
treasury. Therefore, the total number of Ordinary Shares with
voting rights in Arena following Admission will be 117,879,481.
Greg Lawless, Chief Executive Officer of Arena, commented:
"Building on our recent UK acquisitions of specialist furniture
hire company, GLD, and temporary refrigeration supplier Ice House
Rentals, the addition of Events Solution adds yet another in-house
capability to Arena. This diversification extends our offering to
existing clients as well as attracting new clients to Arena's other
services."
James Wood, MD of Events Solution, commented:
"Since being established in 2010, Events Solution has
established an array of clients ranging from film premieres in
Leicester Square to mass participation events to national music
tours and festivals. Joining Arena will give us the resources and
extended network to continue growing our client portfolio in line
with our ambitions. Myself and the team are very excited about a
strong future as part of Arena."
This announcement contains inside information.
Enquiries:
Arena Events Group plc
Greg Lawless (CEO)
Piers Wilson (CFO) +44(0)203 770 3838
Cenkos Securities (Nomad
and Broker) +44(0)207 397 8900
Max Hartley (Corporate Finance)
Julian Morse (Sales)
Alma PR (Financial PR) +44(0)208 004 4217
Josh Royston / John Coles
/ Helena Bogle
Notes to Editors:
Arena Events Group plc (www.arenagroup.com) is a provider of
temporary physical structures, seating, ice rinks, furniture and
interiors. The Group has operations across Europe, the US, the
Middle East and Asia, and current clients include Wimbledon Tennis,
The Open, PGA European Tour and Ryder Cup.
The Group services major sporting, outdoor and leisure events,
providing a managed solution from concept and design through to the
construction and integration of the final structure and interior.
Contracts range in size and complexity from a simple equipment
rental for a local outdoor event, to an integrated solution of
multiple structures and interiors for a major international
sporting event.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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