Shares in the firm were up 5.88 per cent in early deals, to trade at 216 pence.

Lo-Q (LON:LOQ), the provider of virtual queuing systems used in theme parks, is teaming up with MasterCard to create its latest innovation.

Under the terms of the memorandum of understanding the pair will develop a new contactless payment device that combines the card gaint’s PayPass payments technology with Lo-Q's software.

Once developed, they will then promote the combined product to theme parks, water parks and other attractions.

Lo-Q chief executive Tom Burnet said: "This really is an exciting partnership for all concerned.  

“Lo-Q's queuing solutions are highly sophisticated and routinely trusted by some of the world's largest, most demanding attractions operators.  

“Visitors like our products and they get much more from their days out by leaving the queues behind and focusing solely on having fun.  

“By combining these qualities with the world-class payment technologies and reach offered by MasterCard means that we can now work together to create new and exciting growth opportunities for both our firms."

Lo-Q’s flagship offering is the Q-bot, a handheld device that allows theme park visitors to queue virtually. After making a reservation with a Q-bot unit, the system registers that person or group into a virtual queue. 

Guests are informed via the Q-bot’s display, and with a beep and vibration, that their ride is ready, while the device can also inform users of a ride’s breakdown and allow rescheduling of reservations.

The advantage of Q-bot is that it enables theme park visitors to reserve their rides without having to queue, so a visitor does not have to spend their time waiting in a line and he or she can spend time enjoying other attractions or do something else at the park, such as go to a restaurant.

A wristband product for water park visitors and a smart phone app can also provide a similar service

Lo-Q operates primarily on a revenue share basis with its clients, thus sales are hugely skewed towards the summer but the vast majority of deals are actually signed over the winter off-season, Jeans explained. 

Edison’s Richard Jeans said that Monday’s extension to Lo-Q’s relationship with US theme park operator Six Flags substantially underpins the market’s consensus forecasts for 2012 and beyond. 

Additionally, the analyst points out that a three-month smartphone-based pilot at the EDF London Eye begins next week.

"We understand that Lo-Q is receiving a lot of interest elsewhere for this (smartphone) product,” he added. 

“Further contract announcements over the coming months could lay the foundation for positive earnings surprises and lend substantial credence to management initiatives to broaden both the product offering and customer base.” 

Lo-Q’s flagship offering is the Q-bot, a handheld device that allows theme park visitors to queue virtually. After making a reservation with a Q-bot unit, the system registers that person or group into a virtual queue. 

Guests are informed via the Q-bot’s display, and with a beep and vibration, that their ride is ready, while the device can also inform users of a ride’s breakdown and allow rescheduling of reservations.

The advantage of Q-bot is that it enables theme park visitors to reserve their rides without having to queue, so a visitor does not have to spend their time waiting in a line and he or she can spend time enjoying other attractions or do something else at the park, such as go to a restaurant.

A wristband product for water park visitors and a smart phone app can also provide a similar service

Lo-Q operates primarily on a revenue share basis with its clients, thus sales are hugely skewed towards the summer but the vast majority of deals are actually signed over the winter off-season, Jeans explained. 

“(Monday’s) agreement with Six Flags extends its existing agreement (covering 11 sites) by five years to 2017 and also extends the scope to cover eight water park sites for the Q-band solution. 

“The trial with the London Eye is unlikely to be material financially, but we understand that interest in the product is healthy and broader uptake could add incremental revenue streams, diversify customer exposure and reduce seasonality.”

The analyst says that the current valuation is not demanding. “Further, the scalability of the business suggests there is a realistic potential for growth and positive earnings surprises,” he added.

The queueing systems group Lo-Q (LON:LOQ) has received a double dose of good news from its largest customer, the American theme park operator Six Flags.

Lo-Q’s deal to its Q-bot handheld devices, which was due to expire at the end of next year, has now been extended to December 31, 2017. It is currently used at 11 sites.  

Additionally the trial of wristband system trialled at White Water Atlanta will be rolled out to seven other water parks as quickly as possible, Lo-Q revealed.

Chief executive Tom Burnet said: "We are delighted to be extending our enduring partnership with Six Flags for another six years.  

“This is the clearest proof yet of the power of our existing and new products, the strength of our sales force and the long-term opportunity open to us."

Lo-Q’s flagship offering is Q-bot. This is a handheld unit that park visitors can rent. 

After making a reservation with a Q-bot unit, the system registers that person or group into a virtual queue. 

Guests are informed via the Q-bot’s display, and with a beep and vibration, that their ride is ready, while the device can also inform users of a ride’s breakdown and allow rescheduling of reservations.

The advantage of Q-bot is that it enables theme park visitors to reserve their rides without having to queue, so a visitor does not have to spend their time waiting in a line and he or she can spend time enjoying other attractions or do something else at the park, such as go to a restaurant.

The wristband is a waterproof derivative that allows guests to enjoy rides without standing in line.

John Bement, Senior Vice President, In-Park Services at Six Flags, said: "We are pleased to be extending and broadening our relationship with Lo-Q, the leading provider of virtual line queuing systems.

“Six Flags prides itself on offering our guests outstanding technology and The Flash Pass is an important element in enhancing our guests' experience when they visit our parks."

Virtual queuing technology firm Lo-Q (LON:LOQ) has signed an agreement to pilot a new smartphone-based ticketing and queuing system at The London Eye – a popular UK tourist attraction.

Beginning at the start of December and running until February 25 next year, the 12-week pilot trial will see Lo-Q’s technology evaluated at the attraction, which is operated by The Merlin Entertainment Group (an operator of many theme parks and visitor attractions).

Lo-Q said that its smartphone-based solution represents an evolution of its tried-and-tested queuing systems and will open up a range of new target markets for the company around the world. The new system effectively extends all of the benefits of the firm’s proprietary them park queuing product, combined with mobile ticketing and payment solutions, to patrons of any type of attraction. The solution is also Cloud-based, so it does not require expensive infrastructure to be deployed at customer sites.

The London Eye trial will allow visitors to the attraction to bypass its ticket office by purchasing tickets at any time through any Internet-enabled phone and from any location. It will also allow visitors to buy a ‘fast pass’ to board the Eye without having to wait in line.

“This is a fantastic and far-sighted project to be involved with and I am very pleased to see some of our most innovative technology being put to the test in this way,” said Tom Burnet, Lo-Q’s chief executive officer. “Visitors to theme parks and attractions are interested in one thing – the experience.  Today that isn’t just about the ride or the trip, it's increasingly also about the customer experience of accessing the attraction and maximising the time spent on fun, not formalities.  We see today’s trial as an exciting first step toward extending our offering outside of the theme park world and in to all manner of single line attractions where reducing queue time will not only benefit the visitor but the operator, too.”

Weston, the former BAE Systems chief executive, joined Lo-Q back in April. 

This afternoon the company, which has developed virtual queuing systems for theme parks, revealed that Weston bought shares on three separate occasions between 1 July and 8 July. In total he bought 29,500 shares, priced between 185 and 192 pence each.

The chairman now owns 55,700 Lo-Q shares which represents 0.33 per cent of the company’s issued share capital.

Last month Lo-Q unveiled a strong rise in revenues in its traditionally slow first half.

Turnover for the six months ended April 30 rose 33 per cent to £3.27 million, while the loss was steady £940,000. Cash at the period end was £4.03 million, a 40 per cent increase on the year earlier.

Lo-Q said it had signed up four new parks during the six months as well as contract extension with Parque Isla Mágica in Seville, which was sealed after the period end. The results statement revealed a 28 per cent increase in average customer spend by people using products such as its Q-bot handheld device.

The figures also pointed to a 4 per cent like-for-like increase in park visitors using its queuing systems.  

The company, which this year won the Queen’s Award for International Trade, said its Q-Credits wristband for water parks is now live, while it has also developed a smartphone product called Q-txt.

"It's a pleasure to be able to report strong interim figures today and trading continues to be positive,” said chief executive Tom Burnet. 

“As always at this stage of the year, there remains a great deal to be done over the important summer trading period, but the board remains confident that the company is well on track to perform in line with market expectations for the year as a whole."

In this morning’s interim results Lo-Q unveiled a strong rise in revenues in what is traditionally a slow first half.

Turnover for the six months ended April 30 rose 33 per cent to £3.27 million, while the loss was steady £940,000. Cash at the period end was £4.03 million, a 40 per cent increase on the year earlier.

“First half revenue and earnings were stronger than expected,” Liao said.

“As a result, in order to meet our full-year forecasts, we only need to see a 7 percent rise in pre-tax profit in the second half to £3.5 million from £3.2 million in the second half of last year. Due to a higher cost base, second half revenue needs to rise 14 percent to £20.3 million, from £17.8 million in the second half of 2010.”

The group told investors that it had signed up four new parks during the six months as well as contract extension with Parque Isla Mágica in Seville, which was sealed after the period end.

Today’s results statement revealed a 28 per cent increase in average customer spend by people using products such as its Q-bot handheld device.

The figures also pointed to a 4 per cent like-for-like increase in park visitors using its queuing systems.  

The company, which this year won the Queen’s Award for International Trade, said its Q-Credits wristband for water parks is now live, while it has also developed a smartphone product called Q-txt.

"It's a pleasure to be able to report strong interim figures today and trading continues to be positive,” said chief executive Tom Burnet. 

“As always at this stage of the year, there remains a great deal to be done over the important summer trading period, but the board remains confident that the company is well on track to perform in line with market expectations for the year as a whole."

Canaccord’s Liao repeated a ‘buy’ recommendation and increased his target price from 182 to 200 pence a share, in response to the news.

“Lo-Q's full-year outlook is positive and we see potential for upgrades, but we leave our forecasts unchanged at this stage due to the strong seasonal second half bias.”

Lo-Q (LON:LOQ) said that it is pleased with the operational and strategic progress made so far in 2011 and that the strategy implemented by the new chief executive appointed last year is working.

The AIM-listed developer of virtual queuing systems for theme parks reminded that at the time of his appointment in October 2010, chief executive Tom Burnet identified the need for investment in the company's sales functions and product development activities, which have now been made in the first half of the year and Lo-Q is pleased with the early and positive results these are generating.

Together with the new park installation costs and the Water Park trials, this means that the company will report an increased loss for the first half compared to the equivalent period of the previous year, which is in line with expectations.

In recent weeks Lo-Q has announced a significant number of new business gains, which mean that its VQ2020 queuing technology will be operational in four additional parks in the 2011 season.

The board said that the majority of these business gains are new mandates won with existing customers, which have used Lo-Q’s system within other parks in their portfolios.

"The company continues to pursue opportunities to expand our presence across existing park customers, where the company believes real opportunity exists to expand our business, as well as cultivating new client relationships," said Lo-Q.

Shares in Lo-Q have performed very well so far this year, surging from 97 pence at the beginning of January to the current 145 pence.

Canaccord Genuity analyst Bob Liao said in a note out today that he sees earnings upside and rating upgrade potential for Lo-Q.  For now, he reiterates the 'buy' recommendation and 182 pence price target on the stock.

Lo-Q has seen progress in revenue year-to-date and contract momentum has been strong. Four new parks have been signed recently, which are all expected to be operational for the 2011 season. "While the prospects for the year based on the company's current trajectory appear promising, we conservatively maintain our full year expectations due to sales being seasonally biased towards H2," the analyst said.

"In addition, revenue potential from new contracts is typically higher in the second and third years when Lo-Q's services are more familiar to the park operator and attendees. We believe the company should have more clarity on the full year outlook when it reports its H1 results in a few months."

"The shares are trading at only 10 times ex-cash 2011E P/E and 7.2 times EV/EBITA. 2010 net cash represents 26% of the current market capitalisation and we expect significant free cash flow in 2011," Liao concluded."

The results are due in February 2011 alongside the findings of a strategic review, which was launched after new CEO Tom Burnet joined the company in October.

This afternoon, Lo-Q also told investors that it has hired David Gammon as a new non-executive director and it is restructuring the board. The move will separate the executive team from the board of Lo-Q Plc, to help them focus on driving growth.

Gammon previously worked in investment banking for 15 years before he set up Rockspring - a technology investment and consultancy business.

"The restructuring of our board is a key step in ensuring that Lo-Q complies with corporate governance best practice but also so that the executive team can be freed to focus on driving the growth of this business,” Burnet said. 

He adds: “I am pleased to welcome David Gammon as a non-executive director ...  I look forward to his valuable contribution as we position Lo-Q for its next stage of growth."

As part of the board restructuring, current COO Steve Drake and commercial director Paul Cassar will will both stand down from the board, whilst retaining their current responsibilities.

Meanwhile the company’s sales director Colin Robertson has resigned with immediate effect. Burnet will assume his role until a replacement is appointed.

Subsequently the Lo-Q board will comprise of acting chairman John Lillywhite, CEO Burnet, finance director John Alder, founding director Leonard Sim and non-executive directors David Gammon and Tony Bone.

Last month, in its own H1 results statement, Lo-Q told investors that it was looking ahead to the remainder of the year with excitement, after winning new customers and maintaining a strong cashflow in H1.

In the six-months ended 30 April, Lo-Q increased revenue by 21% from a year earlier to £2.46m.

The company noted that, due to a change in its year-end which was implemented in 2009, the first six months of the financial year now only includes limited trading activity. The majority of parks and attractions in which Lo-Q operate have reduced activity between November and April.  The company’s financial year now ends in October, with the H1 ending in April.

In July, Lo-Q highlighted that “the eventual out-turn for the rest of the year as always will be very dependent on park attendance”, and earlier this week one of the key park operators, who have deployed Lo-Q technology, reported improving visitor trends.

According to Six Flags Entertainment Corp (NYSE:SIX), 9.5 million customers visited its 19 theme parks, representing a 6% increase in visitors compared with H109. Lo-Q’s virtual queuing systems are currently installed at 11 of the major theme parks.

Although the precise impact is difficult to quantify, in terms of Lo-Q’s performance, Six Flag’s positive visitor numbers through to June indicate positive trends for the company.