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Chillisauce posts corporate growth despite £280k pre-tax loss after write-off

Agency's earnings pass £470k before write-off of technology costs

Pictured: Chillisauce head of corporate James Diment

Group event and team building specialist Chillisauce has reported a loss of £280k, following a write-off of technology costs.

Accounts for the year ending 30 September 2015, set to be published at Companies House, show turnover increased to £17.2 million with earnings before interest, taxes, depreciation and amortisation (EBITDA) of £470k. A one-off write down of some “capitalised technology costs” contributed to a £280k loss before tax.

Forecasts for 2016 estimate that Chillisauce will return to a ‘healthy’ profit and a turnover of £19m, thanks to the benefits seen from investment in new technology.

Commercial director Matt Hull added: “Our plan is to become the go-to place for group events, which will require commitment and investment. In order to progress towards this goal, we have been looking for ways to streamline the business over the past couple of years to increase our online capabilities and efficiency.

“A huge focus for the company has been to make a significant investment in the development of our front and back-end systems in order to achieve this. The directors believe that this investment in technology will form a platform from which the business can scale up and increase profitability. With our turnover target of £19m on track, the company will see a healthy return to profit in 2016.”

The agency pointed to a 4 per cent growth within its corporate event division, while enjoying a 30 per cent increase in overseas bookings for the company’s other activities such as hen and stag parties.

Head of corporate James Diment said: “It’s encouraging that the uncertainty over Brexit hasn’t had any major negative effects on our day to day business so far. The majority of clients still feel confident about investing in their people and their events. Keeping teams motivated and focused during potentially difficult times is crucial.”

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