Trading Update

RNS Number : 9069P

Lo-Q PLC

31 October 2012

 



31 October 2012

Lo-Q plc

("Lo-Q" or the "Company")

Trading Update

- Lo-Q to deliver profit before tax in line with expectations and net cash slightly ahead of expectations -

- Strong year-on-year growth in revenue achieved despite some weather impact -

Lo-Q (AIM: LOQ), the AIM listed provider of virtual queuing systems for theme parks, water parks and major attractions, is pleased to provide an update on trading for the financial year ended 31 October 2012.

Financial performance

Lo-Q has delivered strong year-on-year growth this year in revenue, profit before tax and net cash. This strong growth has been driven by further increases in revenue derived from existing sites and from the 'switch-on' of new mandates won during the year. 

This growth has been delivered in spite of challenging weather conditions in key markets.  This includes the hottest July on record in North America; the wettest summer since national records began in the UK and much of Europe; and the recent arrival of Hurricane Sandy, currently impacting America's east coast. 

As a result, Lo-Q expects to report a full year revenue performance that is broadly in line with market expectations.  Profit before tax is expected to be in line with market expectations and the Company's closing net cash position will be slightly ahead of expectations.

Operational achievements

This year has seen Lo-Q deliver on a number of important operational milestones.  Strong sales momentum has continued, particularly in new product areas and with new customers.  The Company has also made further progress in securing the partnerships and trials that will support its future expansion in to new markets and verticals.

The Company's Q-band water park product, for example, has now been successfully installed in 11 water parks in North America and has seen encouraging increases in customer adoption during the summer as park guests became increasingly familiar with the product and its benefits.  

Progress with Q-smart - the Company's new smartphone-based system - has also been encouraging for two reasons.  First, this year has seen Lo-Q secure its first Q-smart customer in the shape of an installation at Walibi Holland, one of The Netherlands' top theme parks.  Secondly, this particular Q-smart agreement has opened the door to a new, top-tier customer relationship for Lo-Q with Compagnie des Alpes: the park's owner and a major player in the tourism and leisure industries in Europe.

This new relationship is one example of the good progress Lo-Q has made this year both in building and converting its sales pipeline, particularly within large global operators.   A further example came earlier this month in the shape of an initial deal signed between Lo-Q and a new, significant US theme park operator customer.  The Company continues to believe that in many cases it has a significant, long-term opportunity to expand its footprint within this global operator community. 

Lo-Q has also continued to focus this year on the opportunity open to it in the Asian market place: the fastest-growing theme and water park market globally.  To that end, in April Lo-Q signed a landmark partnership agreement with Sanderson Group - an Australian multi-national corporation with over 23 years' experience in delivering high quality, themed tourist attractions - that will see both firms collaborate on the promotion, sale and support of Lo-Q's products in the region.

Commenting Tom Burnet, Chief Executive Officer of Lo-Q plc said:

"I am pleased that we have continued to deliver strong, profitable growth this year by delivering on the goals we set when the year first began.  We have driven sales across our entire product suite and signed agreements that add new, global operators to our client base.  We have laid the groundwork for future expansion in to Asia, which has the potential to be a hugely exciting market for us over the long-term.  And, we have also pushed ahead with some our newest innovations, signing up our first customer for Q-smart. 

As the theme park operating season comes to a close, operators are once again turning their attentions to the infrastructure investments that will sustain and improve their park visitor experience next year.  As in previous years, we expect this decision-making period to result in further positive news from Lo-Q in the months ahead."       

For further information, please contact:

Lo-Q plc	[phone]
Tom Burnet, Chief Executive Officer
John Alder, Chief Financial Officer
FTI Consulting	[phone]
Matt Dixon, Clare Thomas, James Melville-Ross, Jessica Liebmann
Canaccord Genuity Limited	[phone]
Simon Bridges, Kit Stephenson, Cameron Duncan

About Lo-Q

Lo-Q is the creator of a virtual queuing system for theme parks, water parks and other leisure attractions that allows users to queue without waiting in line. Lo-Q users reserve their place in a queue electronically and are notified when their turn is up, spending less time queuing and more time enjoying their day out.

Lo-Q's system has been adopted by leading theme park and attraction operators globally, with customers including Parques Reunidos, Six Flags, Dollywood, Merlin Entertainments and Compagnie des Alpes. These operators benefit not only from happier customers but also from additional revenue streams as time previously spent queuing is instead transformed into higher spending in park restaurants, gift shops and other retail facilities. By the end of 2011, more than eight million individuals had used a Lo-Q product and that number is growing.

The Company's technology is protected by extensive patents or patents pending in Europe, USA, Hong Kong and Japan. The target market for this technology is large and growing, with Lo-Q currently exploring opportunities for expansion into new theme parks and new geographies as well as opportunities to develop new product for other complementary adjacent markets.

Products include:

Q-bot

Guests reserve a ride on their hand-held Q-bot device, allowing them to enjoy the rest of the park whilst the Q-bot virtually queues for them. When it's time to ride, the Q-bot lets them know and they head straight on to their reserved ride.

Q-band

Q-band is the world's first virtual queuing solution for water parks. Using a waterproof RFID wristband, customers reserve their favourite slide at a touchscreen kiosk. The Q-band displays their wait time and once it has counted down to zero, it's time to ride and the guest heads straight onto their reserved slide. The product can also incorporate cashless payment and access control features.

Q-smart

Q-smart puts our virtual queuing technology straight onto a smart phone and allows park guests to reserve, pay for and manage their rides.

Lo-Q is listed on the Alternative Investment Market ("AIM") under the ticker "LOQ". For further information please visit www.lo-q.com.

Ends

 

END

 

 

TSTBKKDBCBDDCKN