ACC turns a profit in first year of trading

LIVERPOOL’S Arena and Convention Centre had a turnover of £12.25m in its first full year of trading and made a small profit on the back of Capital of Culture.

But chief executive Bob Prattey has warned that the company expects to make a loss this year, and stressed that despite blockbuster events such as the MTV Awards and the newly announced 2011 Labour party conference, it’s not too big to serve smaller business needs.

Figures from unaudited accounts for Arena and Conference Centre Liverpool Ltd, the management company set up to run the waterfront facilities on the city’s behalf,  reveal the company made a profit of £16,000 after tax for the year to April 2009. Net liabilities amounted to £845,000.

Mr  Prattey told TheBusinessDesk that its performance had been bolstered because it opened in Liverpool’s Capital of Culture year and that he was “delighted” by the figures.

He said: “Our plan was to make a small profit in the first year, because of the Capital of Culture, and then a deficit in year two, which would reflect a more normal growth curve. Then in years three, four and five we’d be working towards making a cumulative net contribution to the city in year five.

“When we did the five year plan it was pre-credit crunch. That has affected the convention centre so to still come in with budgeted figures is great.”

Mr Prattey, whose last role was managing director of group venues for the NEC Group in Birmingham, said the company achieved profitability in the tough market by “flexing” the business.

He said the strategy was to concentrate on business from associations, which financially are less affected by the credit crunch, and so more likely to continue to hold their annual conferences.

But he added that he’d like to get more corporate business in the future as it is more profitable, with a higher spend per head.

Last week it was announced that the Labour party was to hold its conference in Liverpool for the first time in 2011, at the ACC.  And although the convention centre has bookings through to 2015, Mr Prattey said he was keen to attract more local businesses to the facilities.

“I’m pleased with our success with associations but we need to plug the gaps and deliver the business plan in terms of corporate, both nationally and locally,” he said adding that he knew the convention centre needs to get the message across that it is not too big for smaller businesses to use.

“Although the blockbuster conventions get the publicity, we also want the SMEs in the region and local area to use the conference and meeting facilities.”

The auditorium, for example, holds up to 1,350 but also comprises two 250 seat areas that can revolve and be used as smaller individual presentation spaces. The centre also has 18 meeting rooms.

He added:  “If we are to be profitable going forward and maintain capacity we do need North West businesses to adopt this as a place they use for board and staff meetings.”

The company’s first quarter performance this year has been “as planned” with a small loss, according to Mr Prattey.

“Lots of people wanted to come in that first year to be associated with Capital of Culture, but this year I think our rate will dip because it’s not Capital of Culture, and also because of the recession,” he said.

“It’s about bedding down this year and looking at our operating costs and driving those down without affecting quality.”