MCH Group: Comprehensive restructuring necessary
The MCH Group is expecting an annual loss of CHF 14 million. In addition, the exhibition halls in Basel will be written down by a further three-digit million figure. The forecast: the exhibition business in Switzerland will continue to shrink. The situation looks better at a global level. CFO Beat Zwahlen speaks of a "comprehensive restructuring".
The restructuring is primarily within the Swiss borders. "We are now analyzing which business, at what speed and on what scale we want to take out within our portfolio of around 40 trade fairs in Switzerland." A detailed article will follow in the print edition of EXPODATA 1-2/2019.
Have trade fairs in Switzerland passed their zenith?
Beat Zwahlen is open and critical: "The classic trade fair format as a trading platform, especially in the public sector, is a discontinued model in Switzerland. But the communities behind it still exist. The challenge is to adapt to this community. Basically, we need specialist forums that make things physically tangible. In Switzerland, the size of such events is simply critical. This means a "possible reduction in staff" and a review of each individual domestic trade fair. The first victim is Grand Basel, the salon for automotive collectibles launched in 2018, which is now being analyzed and will not be held in 2019.
Beat Zwahlen emphasizes that the restructuring is not just a cost-cutting programme. All business areas in Switzerland and abroad are now being scrutinized.
He gave the all-clear with regard to business abroad.
MC2, which was acquired in the USA in 2017 for a double-digit million euro amount, will be retained. The exhibition stand construction company Expomobilia is about to complete two pavilion construction projects at Expo 2020 in Dubai.
Is the MCH Group running out of money?
According to Beat Zwahlen, this is not the case. "All the measures we are taking are not cash-effective. Even a capital increase would not make sense at the moment. Instead, we have to manage the turnaround." (US)
