NEC Group plummets £12.3m into the red

NEC Group plummets £12.3m into the red
NEC Group plummets £12.3m into the red

Parent company of the National Exhibition Centre, LG Arena, National Indoor Arena and the International Convention Centre has blamed the economic downturn for its dramatic drop in profits.

Operating profits for the year to 31 March 2010 equalled £24.1m, yet after taking into account interest on historic loans to build the venues and to fund more recent refurbishments, it was left with a deficit of £12.3m.

According to NEC Group chief operating officer John Hornby, the group had anticipated a very tough year of trading as a result of reduced exhibition activity.

"The exhibition and convention businesses were hit particularly hard by the general economic situation, but the results also reflect the usual exhibition cycle, as well as the financial impact of long-term deals completed to secure exhibitions at the NEC against the backdrop of an intensely competitive venue market in the UK," he said.

"The results also reflect the fact that the LG Arena was being refurbished for half of the financial year."

Plans are now underway to create new profit streams, jobs and economic impact for the region.

Solihull Metropolitan Borough Council recently commenced the licensing competition for a large casino, leisure and entertainment complex to be built on the NEC site.

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