The profitable NEC GroupTagged : Birmingham events NEC necgroup profit thandi ticket venuedirectory venues
The Huge conferencing and events group in Birmingham
The NEC Group has revealed a 2.3% increase in profits despite being put up for sale earlier this year. The huge conferencing and events group in Birmingham held 762 events during the year, and also saw an increase in revenue of 1.7% to £122.8 million. This is despite a slight dip of 100,000 less visitors in 2014 to 3.8million and the continual redevelopment of the National Indoor Arena, a 12,000 capacity sporting and events venue also in Birmingham.
Earlier in the year Paul Thandi, CEO, announced that the group, publicly owned by Birmingham City Council since the 1970s was up for sale. He stated that the business was “well positioned to realise our true strategic potential under private ownership, while improving our contribution to the local and national economies”.
Thandi also stated that “Our financial results and the way we have developed the businesses over the last few years have demonstrated the strength of our growth strategy, constrained only by the amount of capital we have available and the level of risk we can take. With more access to capital under private ownership, and the ability to expand quickly into new areas, I am certain that we could realise the greater potential to the benefit not just of our shareholders, but also the regional and national economies alike.”
NIA | The National Indoor Arena
The NIA redevelopment is running ahead of schedule, and the arena will fully re-open before the end of 2015. I firmly believe that the new facility, allied with our partnership with Barclaycard, will take the group’s UK arena customer experience to a new level.”
The group’s exhibition division, based at the NEC in Solihull, a £3 million increase in operating profit of £34.3 million, up by 9.6% from 2013.
Unfortunately the Arena’s business was not as successful in 2014, due to a drop in the amount of touring comedians available. In addition to the redevelopment of the NIA, a dry-spell in the number of comedians capable of providing enough guests for the NEC caused a more difficult start to the year. Luckily there are a number of large-scale comedians set to fill the NEC with laughter in the upcoming year, such as Miranda Hart, Lee Evans and Russell Howard.
The Ticket Factory
The Ticket Factory, part of the NEC, saw a drop in ticket sales down to 2.1 million due to the decreased number of venues on offer in the year, however the Ticket Factory did secure a number of new contracts as a result of “building its team to meet the long-term increase in the number of tickets to be issued under the new contracts secured.” These new contracts secured an increase of third-party event ticket sales of 75,000 more than the previous year.
Paul Thandi: “The Ticket Factory also has a bright future. Its innovative and customer-focussed approach has secured new contracts with the Royal Horticultural Society, Haymarket Exhibitions, The Society of London Theatres, River Street Events and Sky. The investments we have made in speed of sale are now reaping results and we look forward to delivering against these contracts and securing further new business.”