Sporting hospitality firm Sportsworld saw results drop from a pre-tax profit of £2.2m in 2010 to a loss of £2.9m last year as it invested heavily ahead of its involvement in this year’s Olympic Games.
The company, which is owned by TUI Travel PLC, also saw turnover for the year ending 30 September 2011 dip to £7.5m - down from £22m in 2010, a bumper year for Sportsworld thanks to its major involvement in the FIFA World Cup in South Africa.
Sportsworld told meetpie.com that it has taken on more staff and “invested significantly” in technology to support the management of hospitality programmes at the 2012 Olympics. Sportsworld has contracts for eight sponsors of the Games including Samsung, Deloitte and BMW.
The company has also set up a dedicated accommodation division and destination management service to support the hospitality programmes and inbound Olympic agents working with Sportsworld.
The Director’s report stated: “The focus in 2011 was the delivery of established events and the development of business in and around the Olympics in 2012. This requirement increased the cost base to build an experienced team which led to numerous sponsor hospitality appointments.”
The report also highlighted that the current economic environment remains “challenging and customer demand remains under pressure”. No dividends were paid in 2011, or 2010.
Post-Olympics, Sportsworld is working on a range of events including the Lions Tour 2013, the Winter Olympics in Sochi, the Commonwealth Games and FIFA World Cup in Brazil, followed by the 2016 Summer Olympics, again in Brazil.