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BCD Meetings & Events profit falls 34 per cent as Zibrant sees rise

Sister companies release 2016 accounts

Pictured: Nigel Cooper

BCD Meetings & Events saw pre-tax profit fall 34 per cent to £165k in 2016, according to accounts filed at Companies House. Sales also took a slight dip, from £15.2m in 2105 to £15.1m in 2016.

Meanwhile Zibrant, which was bought by BCD in July 2016, increased its pre-tax profit from £315k to £381k for the period ended 31 December 2016. Zibrant’s turnover fell from £17.4m to £13.4m in the 13 months from 1 December 2015, after a change in the period of accounting to bring it in line with its sister company.

In June, BCD Meetings & Events revealed it had recorded pre-tax profits of £810k, a figure which included combined trading for both BCD Meetings & Events and Zibrant.

Nigel Cooper, MD of EMEA at BCD Meetings & Events, said that the £810k figure was still correct, as the firm was allocating its profits across Europe in line with EU recommendations. He added that there would be one set of accounts for the two UK businesses by 2019.

Cooper said: “For the next two years our accounts will look odd, as we have three companies going into two and then two companies going into one and all profits allocated out because of the EU.”

Writing in the strategic report in Zibrant’s accounts, director Geertjan Jongeneel said: “In July 2016 Zibrant Ltd was acquired by the BCD Travel group, which provided a threefold increase in BCD’s presence in the UK Meetings and Events marketplace.

“Being part of a global organisation Zibrant Ltd is now better placed to win larger contracts within the EMEA region, and worldwide. The immediate strategy is to attract synergies as a result of the acquisition while reviewing the operation of Zibrant Ltd alongside that of its sister company BCD Meeting & Events Ltd.”

The accounts reveal that the boards of both companies monitor overall progress by looking at the same three key performance indicators: gross profit per employee, ratio of administrative expenses to gross profit and forward visibility of order book.

In 2016 BCD Meetings & Events delivered £72,000 gross profit per employee, an increase of 10 per cent on 2015. The ratio of administrative expenses to gross profit was 95 per cent in 2016, compared to 94 per cent in 2015. And by 31 January 2017 the company had confirmed 61 per cent of its annual budgeted gross profit for 2016.

Meanwhile, in 2016 Zibrant delivered £50,000 gross profit per employee compared to £51,000 for 2015. The company achieved a 1 per cent reduction in the ratio of admin expenses to gross profit in 2016 to 95 per cent, while by 31 January 2017 it had confirmed 35 per cent of its annual budgeted gross profit for 2016.

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