NEC releases financial results
NEC Limited has filed its annual report and financial statements for the financial year ended 31 March, 2021.
In a statement, the NEC, patrons of Greater Birmingham Chambers of Commerce (GBCC), said: “The global live events sector has been severely affected by the Covid-19 pandemic and our venues have been closed for almost the entire 12 months of this financial year.
“However, with strong leadership, pro-active banking relationships and supportive shareholders, which, led by our principal shareholder, Blackstone, injected £50 million into the group during the financial year, we have successfully navigated through this challenging period.
“The financial statements report a revenue of £26 million, a trading loss of £4 million, which after then charging depreciation, restructuring costs, interest costs and asset write offs attributable to the impact of COVID-19, results in the group reporting a loss before tax of £46 million.
“Importantly, the group is in a strong financial position with £101 million of cash on its balance sheet as at 31 March, 2021. These figures compare to the previous year 's revenue of £159 million, a trading profit of £50 million and a profit before tax of £18 million. ”
Chief financial officer, Richard Ashton, said: “The past 18 months have been extremely difficult for many businesses, including our own. As a live events business that has been unable to host events, this has required decisive action and careful financial management.
“We are very fortunate to have such supportive shareholders, as well as a strong relationship with our banks who have supported us during the year with additional cash resources when we needed it.
“This is in part due to how well the business was performing before lockdown occurred, but also due to their belief that the business will recover strongly, now that we have re-opened.
“With lockdown measures eased, we are now running events again and we have an ambitious programme planned over the next few months. While we will continue to face short-term headwinds, including challenges around staffing levels and increased costs due to Covid-19 measures, we remain committed to our vision to become Europe 's most successful live events business, operating leading leisure, entertainment and business destinations. ”
Henrietta Brealey, chief executive of the GBCC, said: "Across the country, the live events industry was severely impacted by COVID-19 restrictions. The NEC Group is truly an anchor institution in the region contributing significantly to its success through direct jobs, its supply chain, attracting visitors and creating opportunities to do business.
"It has been a true pleasure to see live events, exhibitions, conferences and celebrations returning to NEC Group venues in recent months. It is a testament to their leadership team that they have been able to weather these conditions and get back to business in style despite ongoing challenges facing the sector."