The UK venues and ticketing group grew turnover 17.9% and EBITDA 58% in the last financial year, bolstered by several major concerts and high-profile exhibitions
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NEC, one of the UK's biggest venue groups, posted a 5% increase in revenue in its first set of financial results since being sold by Birmingham Council
By IQ on 19 Sep 2016
The NEC Group increased turnover by more than £6 million in its first 11 months under private-sector ownership.
The UK venue-management group – which was in May 2015 sold by Birmingham City Council to Lloyds Development Capital (LDC) – saw revenues increase by £6.4m (5%) to £133.8m and earnings before interest, taxation, depreciation and amortisation (EBITDA) by £4.2m (15%) to £31.8m from 1 May 2015 to 31 March 2016, after adjusting for “certain one-off transactions” relating to its £307m acquisition by LDC.
In addition to operating Birmingham’s soon-to-be-renamed Barclaycard Arena (15,800-cap.) and Genting Arena (15,700-cap.), NEC Group manages the National Exhibition Centre (NEC), International Convention Centre (ICC) and Vox Conference Centre – all also in Birmingham – and owns The Ticket Factory, event management/consultancy outfit NEC Live Productions and catering firm Amadeus.
The 2015–2016 financial results include, for the first time, contributions from Vox and the new Resorts World leisure complex, operated by Genting UK, at the NEC.
“This is a strong set of maiden financial results for the group under private ownership”
“This is a strong set of maiden financial results for the group under private ownership,” says NEC Group CEO Paul Thandi (pictured).
“We have a clear strategy and the management team is making great progress in delivering against that strategy, having embraced very positively the change in ownership. We have excellent visibility of future trading due to the profile of forward bookings for events and we will continue to invest in and move all of our businesses forward, maximising the opportunities presented by [planned London–Birmingham railway] High Speed 2 and the significant investment in and around our Solihull site that will bring.
“I am very confident that we will, in due course, be posting an even more impressive set of financial results for the current year ending 31 March 2017.”
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