For the financial year to 31 March 2014, the company said group revenue was up 1.7% on an underlying basis to £122.8m, making up an operating profit of £22.3m.
The NEC Group consists of four event venues, including the NEC, the National Indoor Arena, the ICC and the LG Arena, as well as catering business Amadeus and ticketing agency The Ticket Factory.
The company attributed the £3m profit growth at the NEC to increases in revenues from existing exhibitions growing in size, new shows being developed with organisers, strong growth in returns from non-event business and the benefits of cost management initiatives.
The total number of events and visitors at the group’s owned venues remained steady during the period, with event numbers sitting at 762 (763 in 2012/13) and visitors at 3.8 million (3.9 million in 2012/13).
The arenas and The Ticket Factory businesses delivered an operating profit of £3.9m, down 31% on the previous year. The NEC Group said this was affected by constraints on venue availability due to the NIA redevelopment, the number of music concerts being down marginally compared to the previous financial year and a significant fall in the number of comedy events.
Group Convention Centres, which incorporates the trading results of the ICC together with fees earned from the contract to provide management services to The Convention Centre, Dublin, reported a 20% decrease (£700,000) in operating profit. The company has said this was more than accounted for by the absence of a political party conference in the year.
During the financial year, Amadeus secured new contracts with the Library of Birmingham, Dudley Zoo, Stratford Riverside, Cadbury World and Birmingham’s Symphony Hall and Town Hall. Most recently, this division has won a new contract with London’s Camden Council.
Paul Thandi, chief executive officer of the NEC Group, said: "Our long-term growth and diversification strategy allied to the gradual recovery of the economy are having a continued positive effect on the NEC Group. The financial result reflects a variety of successful initiatives to improve profitability across our businesses, and together with new business wins this creates a good platform for the years ahead.
"The exhibition business has demonstrated its market-leading position by working closely with customers to deliver another excellent result. Forward bookings across all the businesses for the coming years are strong."
He added that following Birmingham City Council’s decision to seek offers for the NEC Group in early March, the company is well-positioned to realise its "true strategic potential" under private ownership.
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