Pop acts help boost figures at NEC group
Top pop acts like Ed Sheeran and Lady Gaga have helped push sales figures at Birmingham's National Exhibition Centre (NEC) to more than £162.1 million for the last year.
The group's Genting Arena and Arena Birmingham venues also welcomed acts such as Drake, Mickey Flanagan and John Bishop, as well as welcoming back Horse of the Year Show, Disney on Ice and Strictly Come Dancing.
That took attendances to more than 1.6 million in the 12 months to the end of March, up 17 per cent on the previous year.
It helped push the NEC to a hike in both sales and profits ahead of a possible sale of the business.
Sales at NEC Group, which owns venues including the International Convention Centre (ICC), grew 2.8 per cent to £162.1 million. Earnings were up £12 million to £60 million.
The group has ramped up investment into its entertainment spaces, investing £21.7 million into its portfolio, up £4.5 million from the year before, bringing the group’s total investment over the last three years to £48 million.
It included a project to fit 185 digital screens across the NEC, and the transformation of its catering facilities.
The investment comes ahead of a possible sale of the group by LDC, the private equity division of Lloyds Banking Group, which bought the company from Birmingham City Council in 2015 in a deal that valued the NEC at around £307 million.
LDC acquired a 125-year lease on the NEC's assets and a 25-year lease on the ICC and the National Indoor Arena in the Birmingham city centre.
Paul Thandi, chief executive of NEC Group, said: "This has been another exceptional year as we see further benefits of what is now a proven strategy.
"We continue to use our market-leading insight drawn from a wealth of customer data to work with promoters and organisers to grow their shows and launch new content."
He added: “Our sporting credentials were reinforced in early 2018, when we hosted a season of international sport at Arena Birmingham, with the IAAF World Indoor Athletics Championships, the Yonex All England Badminton Championships and Gymnastics World Cup. We look forward to showcasing those credentials on a global scale when we host the Commonwealth Games 2022.”
The group also benefitted from increased levels of rent from Resorts World Birmingham, the £150m leisure and entertainment complex at the main NEC site operated by Genting. In addition it has started to see revenue from its deal with Alton Towers amusement park group Merlin for its new visitor attractions – The Bear Grylls Adventure at NEC and Legoland Discovery Centre at Arena Birmingham – which open this year, and from the planned Moxy Hotel development.
As well as regulars like Crufts, the Spring Fair and the BBC Good Food Show the NEC also hosted new exhibitions including This Morning Live, The Fit Show and Collectormania. The group also held its first long-stay event in the exhibition halls, with Dinosaurs in the Wild running over summer 2017.
