Live Company Group readies itself for ‘significant demand’ in 2021
In half-year results for the six-month period ended 30 June 2020, the group reported total revenues at £1.0m (1H19: £2.0m) after all zoos, exhibition centres, museums and retail outlets were shut down on a global basis.
In order to survive the onset of the COVID-19 pandemic and to fund a re-launch of its business, Live Company Group said it has embarked on fundraising and cost savings.
The group successfully raised combined debt and equity over £2.5 million while also taking advantage of the UK government's furlough scheme and restructuring the cost base of the business to permanently reduce its costs by £0.9m to carry through into 2021 and beyond.
During 2Q20, all staff earning above the furlough threshold took 50% of their fees and salaries in shares in the company with non-executive Directors waiving their fees during 2Q20 and 3Q20. As of 21 September 2020, the Group reported £0.2m of available cash.
Having restructured its cost base, successfully maintained relationships with its key partners and begun to build new properties for the significant demand in 2021 and beyond, Live Company said this has enabled the business to survive and re-launch its touring business.
The group added that it has also since introduced new senior management, which it expects to assist the business in its profitable growth ‘in forthcoming years.’
Outlook
Despite lower 1H20 revenues, as a result of nationwide lockdowns brought on by the pandemic, the group said revenues were beginning to return during 3Q20 with a stronger 4Q20 expected.
Twenty-three events which were postponed to 2021 are expected to take place next year with only one of those events having been completely cancelled. The group said it is witnessing ‘significant interest’ in its touring shows and currently has 11 events taking place.
The group will plan for additional builds in the first half of 2021, enabling it to launch new tours to cope with the upcoming demand. It said this has already started to come to fruition with a new contract in Israel for BRICKOSAURS from October to the end of May 2021.
David Ciclitira, Chairman of Live Company, told investors that last year’s group assets were seen in 71 events. Looking forward, he expects this number to be surpassed come 2022.
“I am delighted that the Group and our staff remain strong from the past challenging months, having learned ways to entertain and educate safely but with the same level of passion and pride in our models and offering,” said David Ciclitira. He added:
“The response that we have from the zoos, museums and other venues that have opened has been extremely positive as children and adults alike engage globally with our product.”
Follow News & Updates from Live Company Group here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.