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Concerto Group announces 'recovery year', posting £26.4m turnover

09/12/2011

Concerto Group has announced a ‘recovery year’ after filing profits before tax of £291k for the year ending February 2011, turning around a loss before tax of £42k recorded the previous year. Turnover increased by 23 per cent to £26.4m and gross profit rose by 22 per cent to £7.1m.

Concerto Group chairman Mike Kershaw said: “Last year saw a year of recovery and market share gain, although as a group we are not yet back to where we were a few years ago. Much of the competition saw sales retreat in a tough marketplace, whereas Concerto grew sales by an impressive 23 per cent. The cash-flow generated by our core business has enabled us to invest in our Olympic based team ready to service the needs of London’s Olympics in 2012."

The balance sheet shows a net current liability of £406k, with creditors of £7.9m falling due within one year, however, £3.4m of this is accruals and deferred income.

CEO and group finance director Mark Greaves said: “Overall, with net assets of £1.9m, we feel that we have a strong balance sheet. Even if we exclude intangible assets, we have net assets of £780k and no net bank borrowings.”

He added that performance had been strong across the group’s subsidiaries, which include event management companies Concerto Live, Eventwise, Mask and The Ultimate Experience; caterers Create and Touch of Taste; event venues Delfina,
Plaisterers’ Hall, The Conservatory at Painshill Park and The Conservatory at Luton Hoo; and event services through 50 per cent joint ventures Lola Staffing and Full Circle Performance and Entertainment.

“Performance was better across the board, but with particularly strong growth at both Create and Ultimate Experience and both our joint ventures, Lola Staffing and Full Circle,” he said. “The team building side of the business at Eventwise was particularly hit by the reduction in discretionary spend over the last two years. In general, however, most divisions saw healthy rebounds from the previous year.”

Group chairman Kershaw added that he was optimistic about the outcome for the current financial year: “We increased gross profit by some 8 per cent in the first seven months of this financial year and the final five months are well ahead of this time last year,” he said. “Despite the competitive marketplace, we still expect to post healthy profits for the year and hope to advance on our performance last year.”

Pictured: Concerto Group chairman Mike Kershaw


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