When it comes to insurance, it’s easy to be wise after the event....
SECC reports solid profits as it prepares for arena opening
posted on: 6/9/2012 09:39:50
The Scottish Exhibition and Conference Centre (SECC) has reported pre-tax earnings of £1.9m and a trading profit of £400,000, double its expectations for the financial year.
The venue reported total turnover of £27.1m for the year to 31 March, including £19.4m from normal trading sectors.
Other highlights in the 12 months included an early provision for an impairment charge relating to The Hydro arena worth £36.1m, as well as car park development gains of more than £6m. Once completed later this year, the 1,600-space car park is expected to contribute £7m in profit annually and cover future development receipts for the Hydro.
SECC chief executive John Sharkey said the venue’s business operations performed in line with expectations despite the difficult economic climate across all sectors of its business.
“These are encouraging results when you consider the fine balancing act of running a trading business while building a new arena,” he said. “I’m please to report our original impairment estimation has been significantly reduced and this is largely as a result of better-than-anticipated business plan projections for The Hydro.”
Funding for The Hydro arena is now fully secured and the facility is due to open in September 2013. The venue claims to have attracted key commercial sponsorships for The Hydro worth more than eight times its original targets for the project including securing Scottish Hydo as the national arena's naming rights sponsor and support from consumer brand Coca Cola.
Sharkey said the SECC had a bright couple of years ahead, playing a significant role in the 2014 Commonwealth Games as well as host of the World Gymnastic Championships in 2015 and a venue for the 2018 Youth Olympics Games bid.
“Forward bookings in our key conference sector are healthy and business opportunities from the enhanced capacity in our existing SECC halls look set to be captured,” he added.