"The NEC Group is not immune from the downturn in the economy and we have seen a significant drop in revenues in some areas of our business, particularly exhibitions," said The NEC Group chief executive Paul Thandi.
"As around 60% of The NEC Group's revenue – and an even bigger slice of its profit – come from exhibition business, this has a considerable impact on the group's financial health."
Thandi said the group has reviewed the business to create new revenue, with proposals including new structures or ways of working for certain departments, reduced working hours during periods of lighter activity levels, and outsourcing some key services to other companies.
He added that the short-term revenue expectations from conference business are also lower, which, when added to the drop in exhibition business, will see a reduction in catering income within the group's venues.
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