In March 2021, we passed the one-year milestone for corona virus and a pandemic that has had a major impact on society, our way of life and human health. It has also entailed depressing conditions for Moment Group and the industry in which we do business, something that is clearly reflected in our sales for the past 12 months, which totalled SEK 113 million. This is a decrease of SEK 863 million (88%) compared to the corresponding period one year earlier. For management, the first quarter was characterised by putting in place the last components of the financial solution reached on 27 November 2020 and which involved reinforcing the Group's equity during the quarter by SEK 150 million (excluding the tax effect) and SEK 63 million in liquidity.
Apart from the event companies Hansen and Minnesota Communication and the STAR Bowling and Ballbreaker event arenas, the Group's operations were closed during the first quarter of 2021 and for most of the past 12 months. Thus government restrictions have entailed major limitations on the way we can run our businesses. During the quarter, we continued intensive efforts to execute the strategies and plans that involve building on those of the Group's businesses that are strong and healthy to be ready the moment restrictions are lifted.
"When I took over as CEO/Group CEO on 22 March 2021, I did so following a year
whose focus was on managing the Group's severely strained liquidity. As Group
CFO, I had been deeply involved in the negotiations that led to the financing
solution that was put in place on 27 November 2020 and which ensured our
survival. Also, I have been involved and continue to participate in the
efforts to develop and implement strategies and plans to open the Group's
businesses in the best way possible as restrictions are raised."
Additional support in the amount of SEK 33 million which largely relates to support for 2020, was recognised as revenue during the period. The Group was also granted an extended deferment of taxes and charges in the amount of SEK 22 million and has held positive talks with landlords concerning further deferments and discounts for the period during which operations were forced to remain closed. All of these measures have had positive liquidity effects and where necessary if we are to survive the pandemic and improve conditions for a good reopening of operations.
The preferential share and new share issues carried out during the first quarter contributed approx. SEK 53 million (before issue expenses) to the group. The new share issue was over-subscribed, which was gratifying given the prevailing uncertainty regarding how long the pandemic will impact the industry we operate in. In connection with the share issues, the company fulfilled all of its refinancing commitments, which meant putting new bond conditions in place. Among other things, the new terms involve an impairment in the amount of SEK 100 million, which was recorded as financial income during the quarter. Furthermore, the maturity of the bond was deferred by three years until 28 March 2024. This means that important parts of the company's long-term financing have now been implemented.
One of the most important strategic focus areas, and one where Moment Group has already come a long way, is the creation of a more flexible cost base for more efficient, adaptable operations. This seeks to achieve sustainable profitability and reduce seasonal variations in earnings, which will provide good conditions for continuing to be a strong operator in the segments where we do business.
My colleagues and I are therefore looking forward to meeting market demand the moment restrictions ease.
Gothenburg, 29 April 2021
Martin du Hane
pro tem CEO/Group CEO
+46 721 64 85 65
This disclosure comprises information that Moment Group AB is obliged to disclose according to the EU market abuse regulation. The information was submitted through the auspices of the abovementioned contacts, for publication on 29 April 2021 at around 08:30 CEST.
This information was distributed by Cision http://www.cisionwire.se/