Glasgow’s Scottish Exhibition + Conference Centre (SECC) posted a profit of £400k for 2011/12, £200k ahead of budget. Earnings before interest, taxes, depreciation and amortisation were £1.9m, in line with 2010/11.
The centre also made early provision for an impairment charge of £36.1m in respect of The Hydro, its new 12,000-seat arena opening in September 2013, to be matched with future development receipts.
John Sharkey, SECC’s chief executive, said: “These are encouraging results when you consider the fine balancing act of running a trading business whilst building a new arena. I am pleased to report that our original impairment estimation has been significantly reduced, and this is largely as a result of better than anticipated business plan projections for The Hydro.”
The Hydro has been successful in attracting key commercial sponsorships in excess of eight times its original target. Partnerships finalised included ones with soft drinks company Coca Cola and naming rights sponsors SSE (Scottish Hydro). A 'healthy calendar' of dates held for Hydro concert and events will be announced in the coming months. The arena will also play a part in the 2014 Commonwealth Games and will host the 2015 World Gymnastic Championships.
Sharkey added: “This year, due to a previous scheme for the site not materialising, the SECC became a commercial developer in relation to the disposal and construction contract for a new 1,600-space car park. We secured an operator, contractor and forward-sold the development, retaining a management interest in the contract. Once completed in 2012, it will contribute over £7m to the SECC in terms of profit, with £6m included in the results for the year."
Pictured: John Sharkey