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Profit falls by 2 per cent to £7.8m at Grass Roots

Pre-tax figures for Grass Root Holdings, parent company of Grass Roots Meetings & Events, slid to £7.8 million

Pictured: Zarin Patel, Grass Roots Holdings's chief operating officer

Grass Roots, the parent company of Grass Roots Meetings & Events has revealed profit fell by 2 per cent in 2015.

Consolidated accounts for the group’s operations, filed by Grass Roots Holdings, reveal pre-tax profit slid by 2.1 per cent to £7.8 million for the year-ended 31 December 2015.

Revenue, however, increased by £24m, which was offset by an increase in the cost of sales (£219m) and administrative costs (£55m). 

The group, which in addition to its Meetings & Events arm, has a range of subsidiaries specialising in performance improvement, rewards and consumer promotions, said one-off losses from its Asia Pacific operation impaired profitability.

“We incurred one-off losses due to the over-redemption of a consumer promotion at the end of the year,” the directors’ strategic report stated. “But for this, operating profit for 2015 would have been £1m higher, at £8.5m, which compares favourably with £7.6m in the previous year.

“Asia remains an area of focus but also a challenging and potentially lucrative region for us in the long-term and the board remains committed to finding the most appropriate way to do business there.”

The report was signed off by chief strategy officer Andy Lister and chief operating officer Zarin Patel. It also highlighted the strength of the UK business and the development of the meetings and events division in New York.

“Our UK businesses remain strong and continue to be the largest profit generator for the group,” the report said. “Our core UK markets remain strong and we fully expect these to continue to grow in 2016. 

Accounts for Grass Roots Meetings & Events have yet to be published.

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