# Live Company Group is trading in line with secured multi-year contracts

- Link: https://www.directorstalkinterviews.com/live-company-group-is-trading-in-line-with-secured-multi-year-contracts/412787021
- Published: 2019-07-05T07:10:15+01:00
- Author: Giles Arbor

**Live Company Group** (LON: LVCG) has today provided a Trading Update for the six-
month period up to 30 June 2019, ahead of the Annual General Meeting to be held 
at the offices of Shard Capital Partners LLP, Level 23, 20 Fenchurch Street, London
EC3M 3BY at 9.00 a.m. on Friday 19 July 2019.

The following comments will be made regarding current trading, financial performance
and outlook for the financial year at the opening of the meeting.

**Overview**

**David Ciclitira, Live Company Group Executive Chairman:**

“At the halfway point of the year we continue to make encouraging progress with 
sales and have successfully secured 67% of our revenues for 2019 thus far. Enquiries
remain strong for the Group’s touring assets and it is my belief that we will exceed
our current target of 60 events for 2019, with 52 events already confirmed and several
more in the pipeline. I regularly remind myself on what our business is about and
it comes down to three core elements:

 1. Our strong and continually expanding global network. As you will see in this Trading
    Statement, within the first six months of 2019 we signed agreements with a number
    of new partners and we expect to build upon this further in the coming months particularly
    in Europe and North America.
 2. Development of our own IP and expanding our major IP partnerships. We have registered
    the Bricklive brand and its associated touring brands in most of the major markets
    globally. We are also working with Licensing Management International Limited to
    develop BRICKLIVE’s merchandise range and are focussed on growing this revenue 
    stream.

I also believe the recent announcement of the partnership with Nickelodeon UK Limited
for the UK and Ireland is a big step forward for the business. The response to Paw
Patrol has been positive and we are looking to fast track the building of the first
Nickelodeon Jnr tour. Our aim is to build upon our relationship with Nickelodeon
and see which exciting paths that leads us down. Furthermore, we aim to develop 
our international offering and hope to continue to add to the growing number of 
IP partners we have already secured.

 1. The Company, through the acquisition of Bright Bricks Holdings Limited, has the
    unique ability to build its own assets and tours and bespoke assets for third parties.
    The ability to build and grow the number of tours, provides an opportunity to greatly
    increase the future earnings from the high margin touring business. We have received
    very positive reviews for our zoo touring assets, with some venues announcing a
    30% increase in footfall. As a result, we expect to begin work, before the end 
    of the year, on a new series of assets beyond our projected 15 tours as at the 
    end of 2019. The Group will continue to explore opportunities, through its global
    network, to increase its building capacity to meet the high level of demand.

Our priority for 2019 is to develop the business against the following goals:

 1. Expansion of BRICKLIVE brand in Europe;
 2. Expansion of the BRICKLIVE brand in America;
 3. Foster relationships with global IP partners across the world;
 4. Expansion and development of a new merchandise range using its globally registered
    brand; and
 5. Expansion of the Group’s touring business, through the creation of new touring 
    shows/assets.

The LVCG Board has taken note of the shareholder comments and I would like to confirm
it is our intention to appoint a Non-Executive Director with relevant plc experience
who, once appointed, will be asked to chair the remuneration committee.

As previously announced on 2 April 2019, the Board agreed to issue to me a bonus
of 500,000 new Ordinary Shares (the “Bonus Shares”), subject to the Group achieving
an agreed performance target, in respect of the year ending 31 December 2019. Whilst,
I remain fully committed to achieving this performance target and driving value 
for the Group, I can confirm that should the performance target be achieved, I have
decided not to accept the award of the Bonus Shares.

Looking ahead, we remain focused on delivering our ambitious strategic goals and
hope to exceed market expectations, creating long term value for our shareholders.”

**Contracted revenue**

The Group is pleased to announce that, as at 30 June 2019, the Group is trading 
in line with market expectations and the Group has already secured multi-year contracts
with a value of £4.4 million for 2019 and £1.3 million for 2020.

The Group has seen considerable growth in the BRICKLIVE touring business of both
larger shows which can be found in venues such as Zoos, and smaller touring shows
which can be found in venues such as shopping centres, tourist attractions and museums.

**Number of models**

The 2018 Annual Accounts reported that as of the 31 March 2019, the Group owned 
650 brick models. By the end of June 2019, a further 40 models had been completed
taking the total number of brick models owned by Group to 690 models.

**Number of touring assets**

The 2018 Annual Accounts reported that as at 13 June 2019, the number of themed 
touring assets owned by the Group was 12. The Group will be creating additional 
touring shows such as Paw Patrol, Nick Jnr and a smaller Animal Paradise tour and
the Group is on track to have 15 touring shows by the end of 2019.

**BRICKLIVE Events and Shows**

The following table shows the number of BRICKLIVE Events/Shows held in each of 2017
and 2018, the number currently booked for 2019 as at 30 June 2019 and the number
project to be held in 2019.

| BRICKLIVE Events/Shows | FY 2017 | FY 2018 | Booked for 2019 as at 30 June 2019 | FY 2019 (projected) | 
| Asia | 8 | 20 | 9 | 13 | 
| Europe | 8 | 10 | 39 | 42 | 
| North America | 1 | 1 | 2 | 3 | 
| South America | 1 | 3 | 1 | 1 | 
| Middle East | – | – | 1 | 1 | 
| Total | 18 | 34 | 52 | 60 |

The Group continues to grow its international network with a focus on markets in
which it sees significant future growth.

Over the last six months, the Group has announced partnerships with the following
BRICKLIVE Show promoters/venue operators:

 * AWC AG, Germany;
 * Pal Expo, Geneva;
 * Exhibition Hub SPRL, Brussels;
 * SMG Europe Holdings Limited, Aberdeen;
 * Grimaldi Forum, Monaco;
 * Self-promotion of BRICKLIVE flagship show at the NEC in Birmingham; and
 * Make Merry Company Inc., Japan.

As a result of the North America focus, the Board has decided to put a hold on activity
in South America. Instead those assets currently in South America will be redeployed
to North America to accelerate growth in the region.

Live Company Group also announced the partnership with LMI as the Group’s agent 
in respect of identifying partners for the licensing and merchandising of BRICKLIVE
branded merchandise and products to be sold at the Group’s BRICKLIVE shows, tours
and events. The Board believes that this will provide an additional revenue stream
for the Group and is a further diversification of its business.

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