(BFM Bourse) – The turnover of the former Générale de Location rebounded by 54.6% last year compared to 2020, which allows the group to confirm the objective of a higher net result to 10 million euros. The action is moving forward again, despite a depressed market on Friday.
The shareholders of GL Events appreciate the confirmation by the Lyon-based event specialist that it will indeed record a profit in its 2021 accounts, thanks to a growing recovery in activity over the past year after a financial year 2020 devastated by restrictions, cancellations of major shows and the postponement of sporting events. Expected at more than 10 million euros, the 2021 result is still far from that before the pandemic (55 million euros in 2019). Around 10:30 a.m. the share rose 5.92% to 17.90 euros.
Last year, the integrated event business group, present in the three major event markets (congresses/conventions, events/events and trade shows/exhibitions) recorded turnover of 741.2 million euros. business, a rebound of 54.6% in one year, but still down 36.8% compared to 2019 to take a base not affected by the pandemic. Excluding Brazil (where activity was limited to 15 million euros last year against 70 million in 2019) the recovery would also have been more marked.
“After a long period marked by bans on the opening of our event spaces and restrictions on gatherings in France and in many countries, the second half of the financial year [2021] has experienced a turning point, with the introduction, in France, of the health pass and a relaxation of the constraints weighing on our professions”, explained CEO Olivier Ginon. In fact, the activity has continued to improve with each quarters, to approach the level of the fourth quarter of 2019 in the fourth. Compared to 2019, the first quarter of 2021 still marked a decline of 71.7% in turnover, the second of 55.6%, the third of .1% and the fourth of only 6.2%.This performance, in a still complex context from a health point of view, illustrates the strong dynamic of the recovery in demand as soon as the authorizations to gather are granted, but also the ability of GL Events to redeploy its offer with reactivity, argues the company.
Return of profits
Highlighting “the resilience of our businesses and the importance for the public, exhibitors and visitors, to meet and meet face-to-face”, the manager added that “these good performances” made it possible to confirm the objective of net income (group share) of more than 10 million euros for the financial year.
The management specifies that by “maintaining its strict vigilance on the structure of its costs and by relying on the aid mechanisms implemented by the government including, recently”, including the Closure Aid (which covers 70% of operating loss), GL Events “preserved its cash”. As a reminder, the operating loss during the bans amounts to approximately 200 million euros. As of December 31, 2021, the group had 620 million euros in cash, enabling it to meet all of its commitments (operating investments, debt service, service providers, etc.). Discussions with banking partners to extend the maturity of bilateral bank debt (excluding PGE – loan guaranteed by the State) are underway.
Without giving any quantified outlook for the time being with regard to 2022, GL Events notes the acquisition, on 31 December last, of the entire capital of the company Créatifs (creation, construction and installation of individual stands, and common areas of shows, fairs and exhibitions). Créatifs also intervenes in a very significant way for the Bourget air show, by building and equipping all of the exhibitors’ chalets. This merger will enable the group to strengthen its range of services available to trade show organisers. Commercial, logistical and administrative synergies are also expected. The expected contribution in terms of revenue for the 2022 financial year should be close to 25 million euros.
Guillaume Bayre – ©2022 BFM Bourse
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