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AIM-listed Arena Events (LON:ARE) has seen its shares plunge by 31.72% to 39.60p (as of 14:25 GMT) after the company cut its profit forecasts due to rising costs. Revenues for the year ended 31st December were in line with expectations but a rise in the number of new and one-off jobs meant that expenses also increased. Management said that they expect margins to return to historic levels going forward.
CEO Greg Lawless said: “Whilst the operational issues in the UK division are clearly disappointing, we remain confident in the Group’s strategy and long-term prospects and are pleased to announce that we have recently secured contracts for the 2019 Rugby World Cup and the 2020 Olympics which gives the Board confidence in the future prospects for the Group“.