Member Article

Avesco profits boosted 196% by Olympics

Media services business Avesco reported a 196% surge in operating profits for the year ending 30th September, after work from the Olympic and Paralympic games boosted business.

The firm provided services to Panasonic for many of the Games’ venues, and for Samsung during the torch relay and the four opening and closing ceremonies.

Revenues rose by 14% to £143.5m, while basic earnings per share were posted at 7.3 pence, up from a 0.5 pence loss per share in 2011.

Avesco announced a total dividend increase of 33%, up 1 penny from the previous year to 4 pence per share.

Olympic-related turnover buoyed the company in 2012, after 2011’s results benefitted from the Commonwealth Games in Delhi, India and motor shows in Europe.

The organisation said if these events were omitted from their figures, the underlying business yielded like-for-like revenue growth of 9% across the board.

Avesco’s chairman, Richard Murray, commented: “The staging of the London 2012 Olympic Games and Paralympic Games on our doorstep in the UK has been an undoubted benefit.

“However, even excluding the impact of these events, our underlying growth has been substantial and gives us confidence for the future.”

Avesco’s creative technology unit gave the business its biggest boost, as this sector gave provision to the London Games and generated £6.5m revenues from this event alone.

In total, this division posted 18.6% revenue rises and a trading profit of £4.5m, up from £1.5m the previous year.

Broadcast services grew by 17.6%, while the full services division, which provides a range of media offerings, grew its trading profit by 175% to £1.1m.

Mr Murray added: “It is very satisfying to be able to report on a highly successful year for the Avesco Group.

“Longer term, the underlying strengths of our business in terms of people, equipment and quality of service augur well for continued growth in all our divisions.”

This was posted in Bdaily's Members' News section by Miranda Dobson .