GL events’ Board of Directors, meeting on 9 March 2022, approved the annual financial statements for the fiscal year ended 31 December 2021. They show an annual revenue of €741.2m, up 54.6% year-on-year.
Olivier Ginon, Chairman-CEO of GL events, commented: "Since March 2020, we have faced a long health crisis and taken many measures to limit its impact on our Group.” He added that the lifting of restrictions in the third quarter of 2021 and the adoption of the health pass had set the stage for the recovery.
Ginon (pictured) described the results as “a good performance, combined with measures adopted to achieve cost savings and preserve our financial structure, enabled us to return to profitability and strengthen our cash position. For 2022, and subject to the evolving health and geopolitical situation, the Group expects this positive momentum to continue, with a pronounced seasonality effect in H2 2022.”
The Group benefitted from €46m in specific government aid measures during the Covid period, which partially offset the losses of H1 2021. Net income attributable to Group shareholders amounted to €18m (€15.2m on a post-IFRS 16 basis), compared a loss of €74.3m in 2020 and represented a net margin of 2.4%.
In terms of performances by the individual Group divisions, GL EVENTS LIVE had annual revenue of €430.4m, up 39.2% It was the division that displayed the greatest resilience to the crisis. The structures and seating systems business, which has been dynamic in France, the United Kingdom, Chile and Dubai, registered revenue of €152m up from €139m in 2020. The Group delivered services for numerous mega-events (World Expo, Tokyo Olympic Games, Qatar Champions Clubs Cup) and organised various congresses in France (Dassault, IUCN, etc.) and Turkey (Oncology, Paediatrics, etc.).
Total fixed cost savings over the period amounted to €53m. The current operating margin on a pre-IFRS 16 basis was 5.0%.
GL EVENTS EXHIBITIONS had annual revenue of €144.5m (€68m in 2020) and pre-IFRS 16 EBITDA of €34m. The Group organised the first post-Covid B2B exhibitions in Europe (CFIA Rennes) and in South America (Expovivienda, Expomin). Business in H1 was mainly driven by China and in H2 by Europe (Global Industrie, SIRHA, Première Vision Paris, Sepem, Paysalia/Rocalia, Bepositive) and by South America (Rio de Janeiro International Book Fair, Expomin). Over the period, the performance of national exhibitions was back up between 70% and 85% of previous editions whereas international exhibitions continued to be impacted by travel restrictions. In total, 85 exhibitions were organised in the period (versus 45 in 2020). Savings in fixed costs amounted to €8m. The current operating margin on a pre-IFRS 16 basis was 22.4%
GL EVENTS VENUES had annual revenue of €166.3m in 2021, up 62.8% from one year earlier. This division was the most impacted by government-ordered closures, and 84% of its revenue was generated in H2.
Activity in the period was largely concentrated over a period of four months in Europe (with positive momentum for the destinations of Paris, Lyon and Budapest) and two months in South America (with the resumption of business authorised in Brazil starting in November 2021, limited to €8m). International destinations (The Hague, Brussels and Barcelona) were largely impacted by continuing restrictions on travel. In the period, GL EVENTS VENUES achieved savings and fixed costs of €52m, pre-IFRS 16 EBITDA of €26m and current operating income of €10m (or a current operating margin of 6.3%).
At 31 December 2021, GL events said it had a strong cash position of €629m. During the year, the Group maintained its fixed cost optimisation plan with €115m in savings compared to 31 December 2019 (vs. €188m at the end of 2020), drew down €100m of its RCF and benefited from inflows from government aid measures (€126m from the 3rd wave of French government-backed loans). The banking partners and bondholders also supported the Group by granting a covenant holiday for 2021 without any changes in contractual terms.
Government aid in the form of coverage for fixed costs (‘Aide fermeture’) implemented in December 2021 was recognised under income for the year though received in January and February 2022. In order to reduce debt service charges, the Group entered into a refinancing arrangement for a portion of its bank debt on 4 March 2022. Within this framework, 17 banking institutions participated in this refinancing operation for €251m with a maturity of six years. This extended maturity will allow the Group to lower its repayment instalments by €66m over the next three years.
Subject to the evolving health and geopolitical situation, the Group said it was expecting the rebound in activity to remain on track in FY 2022.
The Group does not operate in Russia and Ukraine. However, it said it would pay particular attention to the economic impacts relating to raw material costs. In Europe and South America, GL events anticipates a return to normal levels of activity with notably a resumption in international seminars expected in H2 2022.
In Asia, and more particularly in China, the Group remains vigilant, particularly for Beijing exhibitions expected to perform less well than in 2021 due to the ‘zero tolerance’ health measures. The other exhibitions/business lines are expected to return to a normal level of activity.
GL events is closely monitoring the potential impacts on its business from the re-emergence of the epidemic in Hong Kong. Based on these assumptions, GL events is expecting sales growth of more than 30% compared to 2021.
The Group said it would retain savings in fixed cost of €20m-€30m in 2022 (in relation to 2019) while continuing to reduce its debt.
For FY 2022, GL events is expecting a return to positive operating cash flow generation of approximately €100m. In this context and after a significant crisis, the Board of Directors proposes that no dividend be distributed for 2021.
