NEC Group boss looks ahead for growth

THE head of the NEC Group has said his focus remains on growing the business despite the organisation slipping into the red.

John Hornby, the group’s chief operating officer, put on a brave face after full year results showed that the business made a loss of £12.3m, reflecting the recession in the conferencing and events sector.

The group, which operates the National Exhibition Centre, the LG Arena, National Indoor Arena and the International Convention Centre, made a profit of £2.7m last year but this was wiped out through a combination of historic loans to build the venues, the £29m facelift to the LG Arena, reduced ticket sales as a result of the venue being closed during the six-month renovation and reduced business at the NEC, where profits were down 27%.

Group Convention Centres, where the trading results for The ICC were incorporated with fees earned from the contract to provide management services to The Convention Centre Dublin, saw a 26% fall in turnover and a 47% decline in operating profits to £3.6m.

Mr Hornby said whichever way the results were viewed, they did not look good.

“We were fully expecting last year to be very challenging and so it proved but this does not make the results any more palatable.

“What we want to do now is look to to the future and there are plenty of reasons to feel optimistic. The Ticket Factory operation is performing well and we have secured new contracts for the NEC.

“The ICC and the NIA both celebrate important landmarks next year and there are several high profile conferences coming to the ICC such as the Conservative Party Conference, which will increase spend and boost the surrounding hotel trade,” he said.

Since the end of the financial year there have been significant contract gains for the NEC, to add to the Haymarket and Royal Horticultural Society contracts secured in 2009/10. 

“The group’s reputation internationally was also reinforced through The NEC’s hosting of the global conference and event Rotary International, which welcomed 20,000 international visitors from 156 countries,” said group chief executive Paul Thandi.

“Looking towards the future, The NEC Group has robust plans to secure new streams of profit, jobs and economic impact for the region. We are delighted that Solihull Metropolitan Borough Council has commenced the licensing competition for a Large Casino and are working hard in supporting our partners, Genting UK, through that process.  Should they be successful, a groundbreaking leisure and entertainment complex will be built on The NEC site as the next stage of its transformation to an all year round business and leisure destination.”

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