Delaware North sees £4m pre-tax loss driven by Wembley Stadium
Delaware North Companies UK has reported a pre-tax loss of £4m for 2014, driven by a reduced food and beverage focus at its flagship contract Wembley Stadium.
Delaware North delivers catering and hospitality at the national stadium under the company name Delaware North Companies (Wembley). Turnover at the contract was down £3.9m year-on-year to £23.8m, while pre-tax loss increased to £2.3m from £279,885 in 2013, according to documents filed at Companies House.
Delaware North's group strategic report stated that revenue at Wembley Stadium is dependent on the profile of events in the calendar and added that the company's UK business in turn has a high dependency on this contract.
"We therefore continue to look for appropriate additional new business opportunities and we were delighted to be awarded a long term contract to operate the former Olympic Stadium [renamed South Park Stadium] from June 2015, which includes UK Athletics and West Ham United as key tenants," the statement continued.
The 20-year South Park Stadium contract was awarded in February and estimated by industry experts to be worth in excess of £200m.
Annual turnover at the group saw a marginal increase of 1.02% to £56.5m (2013: £55.9m), but 2013's pre-tax loss of £914,809 grew to £4m for the year ended 31 December 2014.
Its Delaware North Companies (UK) Hospitality Services division, which operates at Arsenal's home ground the Emirates, and IPro Stadium, home to Derby County Football Club, saw its pre-tax loss rise from £736,182 in 2013 to £1.2m last year. However annual turnover grew to £19.1m (2013: £16m) as a result of new business wins at Charlton Athletic FC and Fulham FC.
The company's travel business, operating under Delaware North Companies (UK) Travel Hospitality and Retail Services, reported 3.5% growth in annual turnover to £9.8m (2013: £9.5m), while a pre-tax profit of £8,860 in 2013 fell to a loss of £440,808.
Delaware North rebrands Fulham FC events business >>
Delaware North bags South Park Stadium >>
Delaware North's UK business reports £900,000 pre-tax loss despite turnover growth >>
