Securing forward sales and multi-year contracts provides us with significant confidence of the short and medium term growth strategy and, together with other revenue streams, our ability to deliver shareholder value
David Ciclitira, executive chairman
What Live Company does
These range from large BRICKLIVE events that attract hundreds, to smaller cafes that parents and children can enjoy while taking a break from shopping.
Since listing on AIM in December 2017, the Company has been pursuing an aggressive strategy of expansion and brand building that has paid off for the share price.
What it owns
Brick Live Group holds BRICKLIVE, an interactive event that allows people to learn, build and play with LEGO bricks.
Parallel Live is a joint venture with Three Six Zero to hold BRICKLIVE events in the US and Canada. The joint venture has agreed terms with Live Nation Entertainment to launch events this year. The first was held in Dallas in January.
Bright Bricks, acquired by Live Company last October, is a professional LEGO brick building firm. It makes custom LEGO brick and toy brick creations for clients across the globe including Rolls-Royce, Google, BT, Land Rover, Warner Brothers, LEGO, General Electric, The National Gallery, Maersk and Lufthansa.
• In a July trading update, executive chairman David Ciclitira said he believed the company would exceed its events target for 2019
• For the year ended 31 December 2018, Live Company reported revenues of £5.35mln, 178% higher than the prior year, while overall losses narrowed to £2.61mln from £5.44mln previously
• Live Company has already secured 63 BRICKLIVE events totalling £4.8mln for the full year, and that there are still £0.4mln of contracts lined up to be signed “in the near-term”
• The company signed a five-year deal to create tours themed around properties owned by children’s television network Nickelodeon in June
• In August, the media group signed a deal with entertainment firm Imagine Exhibitions Inc to help expand its BRICKLIVE tours in North America for a five-year term
• The company has signed with an arm of France’s largest exhibitors and venue operators, GL Events, for staging and promotion of its first BRICKLIVE show in France at the Parcs Des Expositions in Toulouse, to be held between 19 and 27 October
What the broker says
In a note in June, analysts at Shard Capital forecast that Live Company would deliver an underlying pre-tax profit of £200,000 in its current financial year, which would then rise to £1.7mln in 2020 and £3.6mln in 2021.
Analysts also said that the deal Nickelodeon was “transformational” for the Company and would allow it to benefit commercially from leasing assets built using Nickelodeon’s intellectual properties (IPs) while also potentially opening the door to more IP deals with other major content partners.
Shard added that the market fundamentals for the group’s BRICKLIVE shows were “strong” with leisure spending showing historic long-term growth in addition to higher levels of disposable income from emerging economies which was fuelling the wider travel and leisure sectors.
Shard’s valuation has given a one-year range for Live Company of between 73p and 89p per share, which suggested “limited downside risk” alongside strong potential to outperform as newsflow underpinned its longer-term growth prospects.
Ciclitira says Live Company is continuing its expansion overseas, with tours scheduled in North America, Europe, and Asia, saying it is "certain" that Live Company will stack up over 65 venues by the end of this year.
Following the shows in Toulouse, France with GL Events, Ciclitira says that the compay hopes to sign a longer partnership agreement to extend its presence in the country.
The entertainment group has also signed a three-year deal to tour in South Korea, first with its 'Mythical Beasts' exhibition running until August 2020, and raking in US$300,000 a year.
In September its subsidiary Brick Live International signed a deal with Snowman Enterprises to run a themed 'The Snowman and The Snowdog' tour across the UK and Ireland until January 2022
With shares trading at around 40p as of 4 October 2019, Live Company carries a market cap of £28.18mln.