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Investment hits The Appointment Group figures as operating profit falls £1.3m

Turnover increased by 16 per cent, but post tax losses of £32k are attributed to amortisation of goodwill
17/08/2016

Pictured: Sam Robson

The Appointment Group increased turnover by 16 per cent to £17.8m in 2015, but recorded a loss after tax of £31,836.

Group figures show a gross sales value of £133m, up from £127m in 2014, and turnover of £17.8m, up from £15,3m in 2014.

The firm, parent company of The Appointment Group Global Events, also posted a gross margin of 13.94 per cent and EBITDA of £2.034m, down from £3.2m in 2014. This led to a fall in operating profit from £1.86m in 2014 to £558k in 2015.

Sam Robson, group events director UK, said: “We’re really pleased with the results. We’re targeting another growth next year in terms of gross sales value and turnover. We’re still investing heavily in staff and technology and expanding operations, which will affect EBITDA. We’re really happy with progress and expect improved results next year.

“The loss that’s posted, the explanation for that is the amortisation of goodwill from previous acquisitions. It’s to do with counting rules, it’s a technical loss rather than anything else.

“Part of the reason for the reduced operating profit is that we’ve been investing a lot into new offices, such as Singapore, Atlanta and Nashville. We’ve also been investing into technology and the TAG Academy. We’ve also had a cash balance gain from £3.26m to £4m.” 

“Overall, actually there’s good news behind all the figures. It’s not bad news, we’re really happy.”

She added that there are further plans for growth in the pipeline.

“We’re looking at locations for potential new offices, but nothing is confirmed as yet. Because of our music touring heritage we’re looking at locations where we can best support bands on tour.” 

The group strategic report in the accounts says: “Global Events (formerly Events by Appointment) had a fantastic year with a number of clients noticeably increasing their event management requirements. The events division has considerably increased its presence in Australia. Further development of the events division in the US is also in the pipeline for 2016.

“Looking forward, 2016 will see continued growth. The TAG Academy will see its second cohort as the first graduates take up permanent roles in the business. The development of our staff through training at all levels is a key priority.”


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