Transition Year for SECC Heralds Record Year Ahead
Scottish Exhibition Centre Ltd today announced its financial results for 2013/14 with the company reporting a profit of £157k achieved for the year, representing a strong performance in what was a momentous year for the business with the opening of The SSE Hydro.
Through the transformation of the site, the underlying business performance was enhanced. The profit for the year was achieved despite some disruption to the ability to take bookings and significant one off costs associated with the opening of The SSE Hydro. Key financial indicators based on recurring activities show a 16% increase in turnover to £23.3m and EBITDA up 46%.
Live entertainment turnover increased by 27% and the addition of The SSE Hydro also broadened the range of events held in the venue. The Company’s box office turnover increased by 82% largely due to the demand for live entertainment hosted in the new venue.
Performance from the conference sector remained solid for 2013/14 delivering 24% of overall venue turnover and 28% of gross profit. Whilst the turnover and GP were both down by 14% on the previous year, which had been a particularly strong year, the sector delivered 59 meetings in total, a 16% increase on the number of events that were held in 2012/13.
The exhibitions sector delivered a sound performance attracting five new shows when confidence in this market remains fragile. QD Events, the Company’s events management subsidiary, has continued to provide a good contribution to Group results with a strong performance delivered by the existing portfolio of shows including The Scottish Caravan Show, The Wedding Show and The Irn Bru Carnival.
Speaking at the announcement, Peter Duthie, Chief Executive, Scottish Exhibition Centre Ltd said:
“These are good results for the Company. 2013/2014 has been a very challenging year when all of our business sectors had to be maintained during the lead up to the completion and opening of The SSE Hydro.
“The Company’s role as an economic driver for Glasgow and Scotland continues to develop. In the year 2013/14, as a result of the business conducted at the SECC, the net additional expenditure in Glasgow was estimated at £378m, in Scotland £217m and in the UK, £94m.
“The SSE Hydro was ranked 3rd busiest music venue in the world for the first six months of this year and the campus was a key venue for The Glasgow 2014 Commonwealth Games.
“The success during the year was based on an extraordinary level of commitment from our staff. The period leading up to and through the opening of The SSE Hydro, placed huge demands on our team and it is to their great credit that the venue opened on time and operates so effectively”.
Will Whitehorn, Chairman, Scottish Exhibition Centre commented:
“The Board expects the impact of the opening of The SSE Hydro to result in a significantly increased level of profitability and indeed is likely to be the highest recorded in the company’s history in the year ahead. These profits will be reinvested in the business ensuring that the rest of our venues meet the future needs of the conference and exhibition markets.”