Ministry of Sound, the music business that runs the eponymous nightclub in London’s Elephant and Castle, saw revenue in its club division grow again in the year to 31 December 2012.
Club revenues increased 5% to £6.3m, which followed a 9% rise in the previous year. Gross margin in the club business also improved, from 38% to 40%.
Overall pre-tax profits for the group, which also operates record labels and more than 1,500 live music events globally under brands including Ministry of Sound and Hed Kandi, increased from £79,000 to £738,000.
Turnover continued to decline, falling 5.4% to £36.1m. The company said this was “due to the shift from physical CD sales to digital downloads, which generate lower income at higher margins”.
The firm said that although the balance sheet shows a deficiency of assets, £13m is to companies within the parent Nimbus Holdings. Ministry of Sound said that board of that company has confirmed that it will continue to support the group “for the foreseeable future”.
“The board is confident that the Ministry of Sound business will generate an improved profit for the current year,” the company added.
