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Live Company Group (LVCG)

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Monday 12 April, 2021

Live Company Group

Operational Update

RNS Number : 0612V
Live Company Group PLC
12 April 2021
 

 

12 April  2021

 

LIVE COMPANY GROUP PLC

("LVCG", the "Company" or the "Group")


OPERATIONAL UPDATE  

Live Company Group plc (AIM: LVCG, "the Company") provides an operational update.

Highlights

Q4 2020 business impacted by further Coronavirus restrictions on business with revenue for 2020 below our hopes for the year pre-lockdowns and expected to be reported at £1.9 million

Coronavirus restrictions in 2021 Q1 and Q2 mean that any substantial turnover is not expected until Q3/Q4

Out of 24 events that were scheduled for Q2 to Q4 2020, only one was cancelled the rest postponing to 2021 and 2022

Annualised Cost savings of £1.0 million through 2020 and beyond on top of furlough savings

Board costs substantially reduced in Q2 and Q3 of 2020 and supportive Chairman provided additional funding

2020 Overview

Further to the announcement on 15 April 2020 where the Company announced contracted revenues of £3.3 million for 2020, 32 events planned and £1.1million contracted revenue for 2021, the Company withdrew forecasts in line with other businesses within the sector due to lockdown at the end of March 2020. Despite two difficult quarters, the Company reminds investors that only one event scheduled for Q2 to Q4 2020 was cancelled and the rest postponing to 2021 and 2022.

New division Live Company Sports and Entertainment (" LCSE") continues to progress opportunities, although delayed from original plans by coronavirus restrictions. There remain some possibilities for income this year but the expected Formula E race and other events including K-Pop are now being planned for 2022.

In Q3, signs of demand appeared with new contracts for Paddington Bear, Naples Zoo and an increase in consumer sets for corporates before a further lockdown in Q4 which meant that all shopping centres, zoos, museums and event spaces were unable to open. This resulted in a revenue contraction in line with many in the sector. Unaudited results for the year show revenue of £1.9milion (2019: £5.4million) against operating costs of £5.0million (2019: £6.0million) which resulted in a pre-exceptional operating loss for the year of £3.1million (2019: £0.5milion). These figures are provisional and subject to audit.

Annual cost savings of £1.0million via redundancies, a reduction in directors' and senior staff compensation will continue through 2021.

Funding via a loan from the Chairman (repayment terms extended in 2021) and two equity raises enabled the Company to continue operating in a difficult sector and added a further division: Live Company Sports and Entertainment in December 2020. The Company also refinanced its loan from Riverfort and cancelled the Equity Sharing Agreement with Riverfort replacing it with a loan from Close Brothers.

2021 Outlook

As this third lockdown starts to ease, the Company announces that 15 events (tours) are booked so far to take place globally in 2021 and 5 postponing to 2022 and 3 yet to confirm their opening schedule with some such as John Ball Zoo in the United States with Supersized already open to the public. Revenue across the two divisions of circa £0.5 million is expected in Q1 2021 of which approximately half is from LCSE and the other from Bricklive.  However, at present any substantial turnover is not expected until Q3/Q4.

LCSE

In the LCSE division, the Pick n Pay Cycle tour in Cape Town will now take place in October this year and several wine festivals throughout South Africa are to be staged in Q4 2021.The Best of Cape Town will take place in Q4 2021 which will be the pilot event for the Global Best of Cities Series. In 2022, LCSE will host the Cape Town stopover of the Global Ocean Race (ex- Volvo Ocean Race). Discussions for the K-Pop festival continue to progress for the initial festival to take place in 2022.

Formula E

Final negotiations continue to progress positively for the inaugural Cape Town Formula E race to take place in Q1 2022. The Company's local partner has secured the necessary capital from a South African Black Empowerment ("BEE") fund to promote with the race whilst the Group, in line with its strategy of working on a fee based non risk basis, will act as sponsorship and delivery partner. Further additional investment interest has been expressed by other BEE funds.

China and Asia

The Company remains well positioned with its Chinese and Korean partners to capitalise on the increase in domestic demand for local events brought about by the cessation of foreign travel. M ore than two-thirds of the world's 2 billion children are expected to be living in East Asia by 2032, with interest demonstrated by reports that demand for children's educational toys and events is predicted to grow substantially in the coming years and companies including the Lego Group are looking to more than double the number of stores they have in China. The Company hopes to benefit from this potential growth in China and Asia and will update shareholders in due course as appropriate on its progress.

Chairman David Ciclitira commented:  

"2020 was an unprecedented year in the sector with many of our competitors ceasing trading. Not only did we manage to survive this turbulent period but we added an additional division to the Company giving us the opportunity to diversify revenues and reduce overheads to emerge well positioned to take advantage of the expected upturn in the sector, particularly in the UK and USA which are leading the global recovery,  in the second half of 2021 and 2022. My personal mission remains to steer the company back into profitability and therefore increase shareholder value."

 

 

 

Enquiries:

 

Live Company Group Plc

David Ciclitira, Executive Chairman

Sarah Dees, Chief Operating Officer

Tel: 020 7225 2000

 

 

Beaumont Cornish Limited (Nominated Adviser)

Roland Cornish/Rosalind Hill Abrahams

Tel: 020 7628 3396

 

 

Monecor (London) Limited (Broker)

Elliot Hance

Tel: 020 7392 1436

 

 

LIVE COMPANY GROUP

Live Company Group plc ("LVCG", the "Company" or the "Group") is a live events and entertainment company, founded by David Ciclitira in December 2017.  The Company was admitted to trading on AIM in December 2017, following the reverse acquisition of Brick Live Group and Parallel Live Group by LVCG.

 

The Group is a network of partner-driven fan-based shows using BRICKLIVE created content worldwide. The Company owns the rights to BRICKLIVE - an interactive experience built around the creative ethos of the world's most popular construction toy bricks.  BRICKLIVE, which is fast becoming a leading children's education and entertainment brand, actively encourages all to learn, build and play, and provides inspirational events and shows where like-minded fans can push the boundaries of their creativity.  Bright Bricks is the Group's production centre for building brick based models.  The Group is an independent producer of BRICKLIVE and is not associated with the LEGO Group. The Company also manages a number of sports, entertainment and lifestyle events via its recently created LCSE (Live Company Sports and Entertainment) division.

 

Website: www.livecompanygroup.com.

 

 The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

 

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