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Concerto Group profit down by half despite 8 per cent turnover rise

Restructuring costs and loss-making new ventures to blame for fall, according to CEO Sam Gill

Pictured: CEO Sam Gill

Concerto Group saw pre-tax profit more than halve in 2016 despite an 8 per cent rise in turnover.

Pre-tax profit fell from £604k in 2015 to £301k for the year ended 29 February 2016, according to accounts filed at Companies House. This was despite a £2.2m increase in turnover, from £29m in 2015 to £31.2m in 2016.

Gross profit was slightly down year-on-year, from £7.8m in 2015 to £7.7m in 2016.

CEO Sam Gill said: “The Group continued to show healthy growth in turnover in the year to 29 February 2016, with the slight fall in profits relating to a combination of exceptional restructuring costs and new ventures, which are loss-making in their early years. Looking forward to 2017, the Group have secured all their main seasonal venue contracts, where advanced bookings are currently running at around 20 per cent ahead of last year.

“While this current level of strong demand is encouraging, we will need to continue to monitor market sentiment over the next 12 months as the reality of Brexit and inflation may impact on demand and costs in the second half of 2017.”

The corporate event management company acts as a holding company for Concerto Events, Create Food, Delfina Events, Touch of Taste and Mask.

Concerto Events saw turnover fall marginally last year, dropping £15k to £17.03m. Gross profit fell from £2.5m to £2.1m for the year ended 29 February 2016, while pre-tax profit fell from £571k to £343k in the same period.

Concerto Events’ reduced operating expenses of £1.77m compared to £1.96m in 2015 could not offset the decline in gross margin to 12 per cent, compared to 15 per cent in 2015. Writing in the director’s report, group finance director Mark Greaves said that the decline in turnover year-on-year during the November/December period was the principal cause.

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