NEC Group releases accounts after Bradford Live exit

Just over a month ago, on September 19, it emerged the Birmingham-based company had pulled out of running the multi-million pound venue.

According to the new accounts - for the year ended March 31, 2024 - the NEC Group is continuing to feel the effects of the coronavirus pandemic, as well as the cost of living crisis and increases in interest rates, as it tackles a debt pile of more than £420 million.

But the company's directors are said to be confident about the future.

The accounts said: "The group operates in the exhibition, events and hospitality sectors, which was one of the most adversely impacted by Covid-19.

"During the pandemic the group's various trading sites were closed for business from March 2020 and they remained closed until September 2021 when the final lockdown restrictions were lifted.

"As a direct result of Covid-19, the group's cash reserves have been eroded mainly due to servicing its borrowing costs, while its customers and the industry sectors in which they operate have also been adversely impacted, resulting in a reduced level of EBITDA (short for short for earnings before interest, taxes, depreciation, amortization and exception items) which is not expected to recover to pre-Covid-19 levels until 2025.

"The challenges this creates for the group in its recovery post-Covid-19 have been exacerbated by the current cost of living crisis and the increases in interest rates, which are significantly increasing the group’s debt servicing costs."

On that debt, the accounts explained: "On March 31, 2024, the group of companies to which the company belongs had external senior loan facilities that totalled £427.1m, comprising of principal debt of £420.0m and capitalised interest of £7.1m.

"The facilities are due to mature on June 14, 2027, with an option to extend for a further year and are secured against the various assets of the group."

According to the latest accounts, the NEC Group generated EBITDAE of £45.1m on revenue of £176.5m to the year ended March 31, 2024.

This was compared to EBITDAE of £51.6m on revenue of £186.1m for the year ended March 31, 2023.

The accounts pointed out that NEC Group venues hosted the Commonwealth Games, held in Birmingham in 2022, and the "one-off benefit" of this was reported in the company's 2023 accounts.

In 2018, it was announced investment firm Blackstone had bought the NEC Group from LDC, the private equity arm of Lloyds Banking Group.

At the end of last year, the NEC Group said it was in a more "sustainable position" following a refinancing and £100m cash injection from Blackstone.

The latest accounts said: "Having assessed the financial position of the company and considered the wider group using the evidence available to them, the directors have confidence that the company has adequate resources to continue to operate for a period of at least 12 months from the date these financial statements were signed."

Inside Bradford Live (Image: Bradford Council/BradfordLive) On September 19, a joint statement from Bradford Council and the NEC Group said: "Bradford Live and Bradford Council announce that a process is underway to appoint a new operator for Bradford Live.

"This follows a decision by the NEC Group that the venue will be better served by an alternative operator.

"Following a strategic review of its business, the NEC Group will focus on its existing operations in the Birmingham area.

"Bradford Council and the NEC Group have agreed settlement terms to release NEC from the contract that was in place for them to operate the venue.

"NEC will step away from Bradford Live with immediate effect."

Details of the settlement terms were not provided when the Telegraph & Argus asked for them.

Since September 19, there have been no significant updates on the process to find a new operator for Bradford Live - amid ongoing concerns about a lack of transparency over the future of the project.

Bradford Live had previously been expected to launch around this time of the year, with those behind the scheme claiming it would be a "world-class entertainment centre".

It is not known exactly when its doors will open to the public.