A total of 70% of the top 50 event agencies reported pre-tax profits in 2010, with eight per cent recording a loss. Of the 39 agencies that shared profit and loss figures, 35 reported pre-tax profits and four recorded a loss.
Last year's agency ranking leader Motivcom, which owns Zibrant, P&MM and AYMTM, was toppled from the top spot by Universal World Events following the merger of Universal Procon and World Events. However, the pharmaceuticals-focused agency was not able to provide pre-tax profit figures but forecast £80m turnover to the end of 2010.
Robust sales and marketing activity
Motivcom recorded £4.76m profit for the 12 months to 31 December, up 24% from last year's £3.62m after a year in which clients returned to more "robust sales and marketing activity", according to executive director of events and communications Nigel Cooper.
Grass Roots' combined figures for all of its divisions led to a pre-tax profit forecast of £1.6m to the end of 2010.
After 2009's figures showed 42.6% of event agencies made redundancies, the jobs market was more confident in 2010. Seven agencies made job cuts, amounting to 23 staff in 2010. But this was offset by the 35% that added more than ten staff.
Average event budgets
Meanwhile, average event budgets per delegate were £643 in 2010, with the figure expected to rise to £703 in 2011. Similarly 35% of corporates, including Cobra Group of Companies, said budgets were rising, with 86.9% saying the industry is more positive.Click here for the full State of the Industry report.