Arena Events Group PLC Settlement of US legal action and Trading Update (5581W)
August 02 2018 - 2:01AM
UK Regulatory
TIDMARE
RNS Number : 5581W
Arena Events Group PLC
02 August 2018
2 August 2018
Arena Events Group plc
Settlement of potential US legal action and Trading Update
Arena Events Group plc (AIM: ARE, "Arena", the "Company" or the
"Group"), is pleased to announce that it has reached a settlement
regarding its potential US legal matter and to provide a trading
update for the six months ended 30 June 2018.
Settlement of potential US legal action
Further to the Company's announcement on 29 March 2018 in
relation to a potential legal action against its US subsidiary,
Arena Americas, the Company is pleased to announce that a
settlement has been agreed in principle with the United States'
Attorney's Office for the Southern District of Georgia to resolve
the US government's investigation of Arena Americas ("Settlement").
The Settlement includes the payment by Arena Americas of $4.8
million in equal instalments over five years (being $960,000 per
annum). In addition, there is the potential for additional
contingent payments which are based on Arena Americas achieving
revenue of $150 million (Arena Americas 2017 revenue was $56.7
million) or net profits of $2.5 million (Arena Americas 2017 net
profit was $0.5 million). The potential contingent payment would be
$600,000 in any of the next five years that either of these hurdles
are exceeded.
The Settlement is subject to final US government approval and is
a full and final settlement of all relevant matters. The fixed
annual payments of $960,000 will be made by Arena Americas from
existing US facilities and future US operating cash flow.
Arena Americas admits no wrong-doing by entering into the
agreement and has reached this Settlement with the government to
avoid the uncertainty of litigation over the government's
allegations. Furthermore, the Group has completed its detailed
review of all working practices and compliance procedures in the US
and is implementing an upgraded compliance programme to prevent any
similar issues arising in the future.
Trading Update
The Group is pleased to report that trading in the first half
was in line with expectations with the Company delivering a number
of major global events for both new and existing customers,
including Henley Royal Regatta, Wimbledon, the Fever Tree
Championships at Queens, the US Open (golf) Championship, the
Frieze Art Fair, the Genesis Open in Korea and the Hong Kong
Sevens.
In addition, the Company has completed four acquisitions since
the start of the year; furniture business GLD Productions;
temporary cold room company Ice House Rentals; barrier and fencing
company Events Solution; and Ironmonger Group in Hong Kong. The
integration of all the three UK acquisitions is proceeding well and
their trading is in line with management expectations.
The Board is continuing to assess a number of further
acquisitions and will update the market in due course.
The Group is confident of delivering full year results in line
with market expectations.
Greg Lawless, Chief Executive Officer of Arena, commented:
"The Group remains on track to deliver on market expectations
for the full year. We continue to grow the business organically as
well as pursue a number of acquisition targets in line with our
stated strategy.
I am pleased that we have reached a settlement regarding the US
legal matter and that we can now move forward and continue to
develop and grow our US business without the significant
distraction that a lengthy litigation process would have
entailed."
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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