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A Year in Review

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A Year in Review A YEAR IN REVIEW 2018-2019 Review 2018 – 19 2 HIGHLIGHTS £457m £1.25m 47 Estimated Generated a day Exhibitions economic for Glasgow staged impact Chairman’s Welcome 5 Chief Executive’s Review 7 Finacial Review (summary) 9 m m Venue Sales Conferences 11 2.1 1.1Visitors to 89 Visitors to Meetings Exhibitions 13 The SSE Hydro Campus in total QD Events 15 Live Entertainment 17 Commercial 19 Operations 21 People 23 4th 12 Financial Review (Detail) 25 Busiest live International Performances144 entertainment Conferences in The SSE Hydro arena in the Staged world The SSE Hydro 3 Review 2018 – 19 4 2018/19 has been an outstanding year for Whilst this year’s results have been Scottish Event Campus Limited with record exceptional, a contributor to growth in the CHAIRMAN’S turnover and contribution noted in all our exhibition and conference sectors was a venue trading sectors. With the exception highly collaborative approach to managing of 2014, the year of the Commonwealth the allocation of available space in the WELCOME Games, turnover and EBITDA are the venues. Space constraints will continue highest in the history of the SEC. Trading to restrict future growth and during the turnover increased by 21% to £35.1m and year we could not progress discussions for EBITDA increased by 27% to £4.9m. future events worth over £2.5m of turnover as a result of being unable to find suitable, During the year, The Scottish Event available dates within the SEC. The plans Campus (SEC) applied for planning for an expanded campus would provide permission in principle (PPIP) for a opportunity for further growth in both major expansion of its facilities with a these sectors. vision to create a unique global event campus capable of taking the world’s top On behalf of the Board I would like to conferences, exhibitions and events. commend our staff for their enthusiasm, dedication and professionalism which is The £150-£200m project includes a so central to the continued success of the dedicated entrance to the west of the SEC. Campus and additional multi-purpose meeting and circulation spaces with panoramic views of the city and River Clyde. It is estimated that in a mature Will Whitehorn year the new facilities would generate Chairman £123m of economic benefit to the Glasgow area, £106m to Scotland and £71m to the UK. This would be in addition to the benefit currently delivered annually from the existing facilities. It is estimated that economic payback for the taxpayer will be between 5-7 years. It is estimated that in a mature year “the new facilities would generate £123m of economic benefit to the Glasgow area, £106m to Scotland and £71m to the UK. Artists Impression, SEC Expansion 5 Review 2018 – 19 6 This has been a tremendous year for the The SEC continues to be recognised with a business and exceptional in that every string of industry awards. During the year sector in which we operate has delivered the SEC won Best UK Conference Centre CHIEF EXECUTIVE’S a record performance and I would like to at the prestigious M&IT Awards and was begin by thanking our staff and our wider nominated again for the Best Exhibition partners for a fantastic effort. Venue at the Exhibition News Awards. REVIEW The SEC has retained its Gold Award in line Our success is measured not only in with the Green Tourism Business Scheme financial terms but also by the economic (GTBS), which was originally awarded in impact of the campus which generated net 2009. additional expenditure of over £1.25m per day in the Glasgow area, a total of £457m Our subsidiary company, QD Events was for the year. The net additional expenditure nominated in several categories at the AEO in Scotland was measured at £309m and awards this year. The IRN-BRU Carnival in the UK at £223m, both significantly up hosted autism-friendly sessions which from the previous year due to the increased were mentioned in the House of Lords as number of international events. There were good practice in the hospitality and events almost 2.1 million visitors to the campus. sector. This reflects the standing which All of these are record numbers. Trading SEC, including The SSE Hydro, has in the profits will continue to be reinvested to various sectors in which we operate. ensure the existing facilities meet the needs of our customers in an increasingly competitive market. Peter Duthie Chief Executive The the campus generated net “additional expenditure of over £1.25m per day in the Glasgow area, a total of £457m for the year. SEC and West End, looking South 7 Review 2018 – 19 8 Key Performance Indicators have been There was a net cash inflow from operating used below to more accurately explain activities of £11.1m for the year. Whilst FINANCIAL the financial position of the business, the business is inherently cash generative, which is already seeing the benefits of the there can be variations from year to year continued investment in our facilities and as a result of cash from ticket sales held on REVIEW our people. behalf of concert promoters. Our Key Performance Indicators are measured on the Group activities. Key financial and other performance indicators during the year were as follows: 2019 2018 Turnover excluding grant release £35.1m £29.1m EBITDA ¹ £4.9m £3.8m Net cash inflow from operating activities £11.1m £7.1m Capital Expenditure £1.4m £1.5m Economic Impact Glasgow (estimated) £457m £400m Number of Visitors 2.1m 1.8m Pollstar Arena Global Ranking 4th 4th Number of Exhibitions held 47 42 Number of International Conferences held 12 9 ¹ EBITDA is defined as operating profit from recurring operations before depreciation of assets and release of grants. The SSE Hydro 9 Review 2018 – 19 10 Our Conference sector had a record year In preparation for both events, Glasgow with 55% growth in turnover driven by 12 Welcomes held a number of training international events, and a host of large UK sessions aimed at raising awareness and CONFERENCES conferences and 54 corporate meetings. educating people across the city about There were 89 meetings in total. how to interact with those attending. These sessions included the SEC team and The number of international events helped contributed to both events leaving a lasting to drive the increase in the economic legacy in the city. impact to a record level. This aligns with the strategy pursued when The SSE Hydro Over the year the team secured a number opened allowing greater space availability of major conferences for the future, many to attract future business. The addition as a result of strong partnerships with of the Meeting Academy in the prior year key local academics and the Glasgow helped to secure a high number of smaller Convention Bureau. Wins include the events and provided a valuable addition to Royal College of General Practitioners our meeting space for larger conferences. (RCGP), the Global Implementation Conference (GIC), the European Congress This success is due to targeting growth on Thrombosis and Haemostasis markets and strengthening the conference (ECTH) and the International Congress sales team accordingly, and by working in of Neuroendocrinology (ICN). Each bid partnership with key city stakeholders. presented healthy competition from other The recognition by the industry of our world-class venues. professional and friendly staff has also contributed to this success, as well as These events will showcase the expertise Glasgow being recognised as a great of our academic, research and business event city and having an award-winning communities in these fields and are a great convention bureau. opportunity for research and business collaboration. Earlier this year, the Scottish Event Campus hosted the WFH 2018 Congress. Whilst we continue to successfully win Over 5,000 delegates from 136 countries future business, the current uncertainty attended the event, which is the largest over Brexit has led some international international meeting for the global conferences for future years to advise that bleeding disorders community. they won’t consider the UK at the moment. During the year however, exchange rate From the 25th-27th July 2018, the World movements made the UK a more cost- Down Syndrome Congress was held at the effective option and was a factor in the SEC From the 25th-27th July 2018, the SEC. The three-day event welcomed over securing some events. “ World Down Syndrome Congress 1,000 delegates from all over the world to the city to be inspired, become more was held at the SEC. The three informed and influence others. It was the day event welcomed over 1,000 first time in 32 years that the World Down Syndrome Congress has been held in the UK. delegates from all over the world World Down Syndrome Congress, SEC 11 Review 2018 – 19 12 The Exhibition sector grew by 3%, a 4th consecutive year of growth that surpasses EXHIBITIONS the previous record performance. 96% of the business was repeat and we welcomed 5 new shows including successful launches from Gin To My Tonic, Dog Lovers and Baby and Toddler. All of which will repeat next year. We hosted Scottish Hair and Beauty, a relocate from EICC, that landed well and The Dog Show, SEC Centre delivered a 6% increase in visitor numbers. Combined we welcomed over 520,000 visitors to exhibitions at the SEC. This will continue to be a focus in 2019/20 as well as renewed investment for the “in The venue was shortlisted in the AEO and hall” catering experience. The chefs at SEC the EN Awards “Best Venue” categories Food have refreshed the food offering for and both marketing and customer exhibitions, it looks and tastes fantastic experience were shortlisted in their and we will enhance the environments respective team categories.
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