Accounts posted by the NEC Group show the enjoyed rising revenue but falling profits last year.
The group turned over £136 million in the year to March 31, 2013, boosted by the contract to provide catering to Olympic Park North in the London 2012 Games.
However, that contract was ultimately unprofitable, and overall profit fell by 28 per cent to £1.8 million, as its pensions burdens continued to weigh heavily.
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The accounts also reveal a fall in permanent staff at the group, after a push on zero hours contracts – something which the Unite union wants to address.
This comes just weeks after the NEC’s parent Birmingham City Council revealed it was putting the group – which comprises the NEC, LG Arena, ICC, NIA and other businesses – up for sale to raise vital funds.
The NEC has historically fallen short of major profits amid a major pension burden and debts.
The accounts show £192.4 million borrowings, and a £24.3 million annual interest bill, but a spokesman for the company said he’d expect debts to be restructured as a result of the sale process.
He said: “As you rightly point out the debt you refer to is currently held by Birmingham City Council.
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“This debt is directly serviced by the NEC Group and payments go directly to the city council.
“Given the absence of any financial obligations to third parties in relation to this debt, it is likely to be restructured ahead of any sale.”
The group receives a revenue grant from the city council, which increased from £11.6 million to £13.1 million in the financial year.
The NEC’s balance sheet continued to be weighed down by its pension – despite closing its final salary scheme in 2010 – after lower bond yields meant its deficit rose by £4.6 million to £25.7 million across the year.
However, the changes to the pension showed some benefit to the company, with actuarial loss on the scheme falling from £10.2 million in 2012 to £6.3 million last year.
Accounts filed at Companies House show while the overall wage bill increased from £31.5 million in 2012 to £35.3 million last year, the total number of people – excluding casual and zero hours staff – actually fell from 727 to 686.
The spokesman explained: “Over the last 12 months the group has increased its number of employees. Most of this increase relates to people previously engaged on a casual basis with Amadeus becoming employees, in the main under zero hours contracts.
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"This change in status provides those individuals with employment rights they would not have enjoyed under casual status.”
Joe Clarke, regional industrial officer for Unite, said he hoped to encourage the firm to take on more permanent staff and fewer zero hours in April pay negotiations.
He said: “We have agreed to have further dialogue regarding zero hours and the living wage, and we will be looking to get more people onto regular contracts.”
The group welcomed almost four million visitors to its home venues at more than 750 events across the financial year.
The group’s exhibition business individually delivered an operating profit of £31.3 million, up 13.8 per cent on the previous year.
Its arenas and Ticket Factory business delivered an operating profit of £5.6 million, after being boosted by acts such as One Direction, Rihanna, Jay Z, Madonna and Justin Bieber.
The accounts come ahead of a period of major change for the group, with the sale process ongoing and one of the largest casinos in the 海角视频 soon to open.
More than £130 million is being invested in Resorts World Birmingham, being developed by Genting 海角视频, including a four-star hotel, which is expected to open next spring. The city council currently owns 99.99 per cent of shares in the group, which is estimated to bring in £2 billion in visitor expenditure each year and support 29,000 jobs.