Stuart WoodGL events, a major event industry supplier and venue operator, is preparing for a September return in Europe, when it expects to reopen its venues in the continent.
The company says it has taken “significant measures” to reduce costs in recent months. It says it has reduced ‘fixed costs’ in wages, employer social contributions, rent, maintenance, energy, and travel costs by more than €90 million.
GL events also announced that it had won a court case against the organising committee of the 2010 Delhi Commonwealth Games, and received a payout of €8.5m. The company had been engaged in legal actions since 2011, after the organising committee suspended payments to international companies who delivered services for the event.
Despite these savings and the court payout, GL says the severe disruption caused by Covid-19 will lead to a net loss of approximately €30m as of 30 June.
The board of Directors announced on 26 March that it will submit to the company AGM – happening today, 19 June – a proposal to not pay a dividend for the fiscal year 2019 in order to preserve the group’s liquidity.
The company says it is looking to bounce back in 2021, with events including the Tokyo Olympic Games, the Euro championships and the World Expo in Dubai.
Olivier Ginon, GL events’ Chairman commented: “While many countries have started to reopen, the events industry, and especially the business tourism sector, remain subject to restrictive measures adopted throughout the world to stop the spread of Covid-19.
“In this context, GL events has adapted its organisation and been preserving cash in order to be ready to rebound. To prepare for the recovery, we remain in regular contact with the authorities and industry organisations. Once again, I wish to thank all GL events employees for the professionalism, patience and commitment they have shown since the beginning of this crisis.”