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Profit down 26 per cent at Grass Roots M&E

Turnover down £2m to £11.6m in 2016 as company reduces events management business

Profit at Grass Roots Meetings and Events fell by 26 per cent to £1.1 million in 2016.

Turnover at the firm was down by more than £2m to £11.6m in the same period, according to accounts filed at Companies House for the year ended 31 December 2016.

The strategic report accompanying the accounts said: “Turnover from ongoing operations has decreased to £11.6m from £13.8m and gross profit decreased to £10.2m from £11.4m as the company consolidated its focus and reduced the events management business.

“The gross margin improved to 87.8 per cent from 83 per cent and the operating profit is £1.1m in comparison to £1.5m in the prior year.

“Shareholder funds have increased by £0.6m during the period which is the profit for the year.”

The firm’s parent company, Grass Roots Group, was acquired by US-based Blackhawk Network last year in a £90m agreement.

The report said: “This change of ownership will give the Grass Roots businesses investment and impetus to grow the business and in particular develop new and innovative products for the UK market.”

Earlier this year
Blackhawk Network revealed plans to get rid of Grass Roots Meetings & Events, less than a year after acquiring the company.

The report added: “A strategic decision was made to explore the possible divesture of the meetings and events division. This will allow Blackhawk to focus on its core competencies while enabling the meetings and events division to develop further under the owner of an organisation more closely aligned to the meetings and events core business offering.”

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