The NEC Group has announced operating profits of £16.9m across its businesses in the year to 31 March 2012. Over the same period it welcomed three and a half million visitors to its venues at over 700 events.
Group Convention Centres (incorporating the trading results of The ICC together with fees earned from the contract to provide management services to The Convention Centre, Dublin), reported a £0.7m (4%) increase in revenue to £17.6m, but operating profit fell by £0.3m (7%), which the NEC Group says is due to the impact of higher energy and property costs.
The exhibition business, based at The NEC in Solihull, delivered a profit of £27.5m, considerably down, £10.1m (27%), on the previous year.
The Arenas and Ticket Factory business delivered an operating profit of £3.7m, down £1.5m (29 per cent) on the previous year.
“Overall, we delivered a financial result that was marginally ahead of our budget expectations,” says The NEC Group’s Chief Operating Officer, John Hornby. “We are pleased with that result, given the extent of the macro-economic headwinds we faced during the year.
“Our conferences division was able to deliver further revenue growth in what remains a fragile and very competitive market,” Hornby adds.
The NEC Group Chief Executive, Paul Thandi (pictured) welcomed the financial result given the market conditions.
“I am pleased that the efforts of everyone across our businesses resulted in us achieving a financial result for the 2011/12 year that was ahead of our budget expectations. The extent of the economic uncertainty has been such that our markets have been tougher than we expected,” he continues.
“We have continued to invest in the future of our business. In particular, we now have a fully-funded project underway to re-develop The NIA. We are delighted to be partnering Barclaycard and look forward to The NIA, Barclaycard Unwind Experience completing its revitalisation in late 2014.”
The NEC Group’s partnership with Genting to deliver a Leisure and Entertainment Complex at The NEC site has received outline planning permission from Solihull Metropolitan Borough with the NEC Group intending to create a leading business and leisure destination.
“The current financial year is set to be an exciting one for The NEC Group,” says Thandi. “Our international team is busy across Europe and beyond on a number of projects that we hope will secure us further international management contracts. Our team at Amadeus is working to deliver a number of catering contracts over the summer, including for the northern part of the Olympic Park during the Olympic and Paralympic games. Across the Group we are continuing to invest in our businesses, as well as in the venues themselves.”
Do you have a news story for CN? Email: firstname.lastname@example.org