THE Scottish Exhibition and Conference Centre in Glasgow held underlying profits broadly steady in the 12 months to March, and predicts a slight dip in earnings this financial year ahead of a sharp Commonwealth Games-related spike in 2014/15.
The SECC achieved a pre-tax trading profit of more than £300,000 in the 12 months to March 31, broadly in line with about £350,000 in 2011/12, and enjoyed an underlying 4% rise in revenues.
John Sharkey, the SECC's chief executive, expressed his satisfaction with the profit performance during a year of major construction work on the 12,000-seater Hydro arena. And he highlighted a drive to bring more trade exhibitions to the SECC, as concerts moved to the Hydro.
Scottish Exhibition Centre Limited, the company behind the SECC which is about 91%-owned by Glasgow City Council, made earnings before interest, tax, depreciation and amortisation (EBITDA) of £2.5m in 2012/13.
Mr Sharkey projected EBITDA could fall slightly in the current financial year to March 2014 because this period would include a full year of running costs for the Hydro, which is due to open on September 30, but only about six months of revenues.
He projected a jump in EBITDA to between £9.5m and £10m in 2014/15, on the back of the Glasgow 2014 Commonwealth Games and with the first full year's trading from the Hydro. He forecast EBITDA would fall back to between £3.5m and £4m in the 2015/16 financial year.
Mr Sharkey said sponsorship and hospitality revenues from the Hydro would be nearly £2m in 2013/14, and just under £3.5m in 2014/15. He added that the SECC has entered into sponsorship contracts for the Hydro worth nearly £2.7m per annum, about nine times its original target.
He also cited the results of a study, involving accountancy firm KPMG, which showed the SECC had made a £4 billion impact on the economy over the past 10 years, in 2013 prices.
SEC Ltd's latest accounts put net additional expenditure in Glasgow, as a result of its business, at £357m in the year to March. Mr Sharkey noted the economic impact assessment was based on surveys of those visiting the SECC, which included questions on where they had travelled from, and how much they were spending on staying in hotels and eating in restaurants.
Mr Sharkey added that the economic impact would increase by about £130m-a-year after the Hydro was opened.
SEC Ltd made a pre-tax profit of about £1.4m in the year to March. However, this included a £1.1m development gain on a car park which has been built at the site and sold to Canada Life.
Excluding the car park project, SEC Ltd posted a rise in recurring revenues from £19.36m to £20.05m.
Mr Sharkey highlighted strong events and conferences business at the SECC in 2012/13. He also cited an improvement at the SECC's QD Events unit, which he said had enjoyed a near-£400,000 improvement in its bottom-line performance. QD puts on events including the Irn-Bru Carnival, the Scottish Caravan, Motorhome & Holiday Home Show, and the Scottish Wedding Show.
He noted that the SEC Ltd's ticketSOUP business, which sells tickets for concerts at venues including Hampden Park as well as events at the SECC, had been hit during the year to March by a reduction in stadium tours caused by the London 2012 Olympics.
Mr Sharkey highlighted more subdued concert business for the SECC in the year to March, attributing this to the Olympics.
He cited a boost from comedy. He said Scottish comic Kevin Bridges had brought 87,000 people through the doors of the SECC.
Musicians who played at the SECC during the year to March 31 included Guns N'Roses.
Mr Sharkey acknowledged the scale of the challenge in getting the Hydro completed in time for a planned opening concert by Rod Stewart on September 30, after a fire in roof space on June 8, but believed this could be achieved.
He still hopes to attract a 200-bedroom hotel development on the east side of the Hydro, next to the new car park.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article