Live Company Group Plc (LON:LVCG), a leading live event and entertainment group, announced today its half-yearly results for the six month period ended 30 June 2018.
Highlights for the period
* Group revenues from continuing operations for six months to 30 June 2018 were £2.842m. This compares favourably to full year revenues to 31 December 2017 of £1.928m.
* Operating profit from continuing activities in the period of £503k (FY 2017: operating loss of £391k, before exceptional items).
* Following the Group’s high profile show in New York in February 2018, decision to launch the BRICKLIVE brand across the US and to discontinue the LEGO LIVE brand.
Post-period events
* Launch by the Group’s joint venture partner in China of BRICKLIVE ANIMAL PARADISE in August 2018 in the National Stadium, Beijing, the first event of a 20 city tour in China over the next three years.
* Joint venture signed, in September 2018, in the US with Three Six Zero, to create Parallel Three Six Zero Inc. (“PTSZ”), and exclusivity terms agreed by PTSZ with Live Nation Entertainment, Inc. for the promotion of BRICKLIVE events throughout North America.
* On 26 September 2018, the Company notified that it is in discussions with regard to a potential equity fundraising, to finance the potential acquisition of a complementary business to the Group and to accelerate organic growth.
David Ciclitira, Live Company Group Chairman, said: “The first six months of this year have been an amazing journey. Having only created Live Company Group at the end of last year, we have achieved a great deal. 2018 was always going to be a year of investment, and I am pleased that we have recorded a profit, whilst managing to expand internationally. I believe that this is a good base for our full-year results and we look forward to the growth in the second half of this year. The recent announcements relating to both China and BRICKLIVE’s launch of the joint venture in America are an indication of the exciting times we have ahead, both for the rest of 2018 and into 2019.”
CHAIRMAN’S STATEMENT
I am pleased to present the Group’s first full six-monthly results since the acquisition of the Brick Live business in December 2017.
At the beginning of this year, I had certain specific goals for the Group, including: the consolidation of the BRICKLIVE brand in Asia and the establishment of the BRICKLIVE brand in the United States.
Financial Review
This has been a busy period of activity for the Group with increased turnover of £2.842m (H1 2017: £1.067m) and a profit from continuing activities of £503k.
Inclusive of discontinued operations, the Group made a profit of £116k in the period, compared to a loss of £138k for the comparative period in 2017.
During the period LVCG carried out two equity fundraisings for a total of £1.95m, to support the Group’s expansion plans, in particular in Asia.
Since the period end, there has been a substantial improvement in cash flows from operating activities, with Group receivables reducing to £318k at the end of August 2018.
As at 26 September 2018 the Group’s cash position had improved to £154k.
Asia
We have grown our business in Japan from five shows in 2017 to six events so far this year, with a further two expected by the end of 2018. In June 2018, we launched the ASEAN Tour in Jakarta and Bangkok with at least one further show to take place in the region by the end of the year. The last six months has seen the continuing growth of the BRICKLIVE brand in South Korea with the launch of BRICKLIVE CAFÉ, BRICKLIVE LITE and BRICKLIVE BUSAN JUNGLE EXPERIENCE, and BRICKLIVE BIFF and BRICKLIVE CENTRES. In China, two BRICKLIVE CENTRES have opened so far this year and has launched the new brand extensions BRICKLIVE KIDS and, in August 2018, BRICKLIVE ANIMAL PARADISE both in Beijing. The BRICKLIVE ANIMAL PARADISE tour will visit a further 19 locations around China over the next three years.
United States
In September 2018, our wholly-owned subsidiary Parallel Live Group Limited (“PL”) signed a joint venture with US-based company Three Six Zero, forming a new company, Parallel Three Six Zero Inc. (“PTSZ”). PTSZ has been granted exclusive rights by PL to promote BRICKLIVE events in North America with Brick Live International Limited as its content provider.
PTSZ has agreed terms for an exclusive agreement with Live Nation Entertainment, Inc. for the promotion of BRICKLIVE events throughout North America. These rights are initially for one show, and if successful, would allow for further shows to be staged. The location of the first show will be at The Star in Frisco, Texas, on 26 and 27 January 2019.
Acquisition of complementary business
On 26 September 2018, the Company notified that it was in discussions over a potential equity fundraising, to finance the potential acquisition of a complementary business to the Group and to accelerate organic growth. I believe that this potential transaction would be a “win win” for both businesses and would fast track the growth of the enlarged Group.
I would like to take this opportunity to make a special mention of the Group’s Board and Staff worldwide for their considerable efforts. I would like to give specific thanks to Simon Bennett for his contribution over the last 18 months and look forward to welcoming new directors in the very near future.
Finally, I would like to thank all of our shareholders for their support and belief.
David Ciclitira
Chairman
Date: 28 September 2018
