Live Company Group PLC (LON:LVCG) said it is well-positioned to take advantage of the expected upturn in the sector in the second half of 2021, particularly in the UK and the US.
The entertainment firm said it has bookings for 15 tours globally this year, while five were postponed to 2022 and three have yet to confirm their opening schedule because of Coronavirus (COVID-19).
WATCH: Live Company 'bullish and well positioned' ahead of expected upturn in live events sector
In the first quarter of 2021, revenue is expected to come in at £500,000, of which half is from the new division Live Company Sports and Entertainment (LCSE) and the other from Bricklive.
However, the company admitted it will not see “any substantial turnover” until the third or fourth quarter because of global restrictions to contain the virus.
The firm said that LCSE continues to progress opportunities, although delayed from original plans by coronavirus restrictions.
There remain some possibilities for income this year but the expected Formula E race and other events including K-Pop are now being planned for 2022, with discussions still ongoing.
The Cape Town Formula E race is scheduled to take place in the first quarter of 2022.
Live Company, which has secured the necessary capital from a South African Black Empowerment (BEE) fund to promote the race, will act as sponsorship and delivery partner. Further additional investment interest has been expressed by other BEE funds.
The Pick 'n Pay Cycle tour in Cape Town will now take place in October this year and several wine festivals throughout South Africa are to be staged in the fourth quarter.
The Best of Cape Town will take place in the fourth quarter which will be the pilot event for the Global Best of Cities Series.
The group added it remains well positioned with its Chinese and Korean partners to capitalise on the increase in domestic demand for local events brought about by the cessation of foreign travel.
Demand for children's educational toys and events is predicted to grow substantially in the region, where two-thirds of the world’s 2bn children are predicted to live by 2032.
As for last year, the fourth quarter was hit by further restrictions so revenue for 2020 came in below expectations and is forecast to be £1.9mln.
Out of 24 events that were scheduled for the final nine months of 2020, only one was cancelled and the rest postponed to 2021 and 2022.
Live Company also realised £1mln of costs savings excluding furlough money.
It added that board costs were “substantially” reduced in the second and fourth quarter and chairman David Ciclitira provided additional funding.
"2020 was an unprecedented year in the sector with many of our competitors ceasing trading. Not only did we manage to survive this turbulent period but we added an additional division to the company giving us the opportunity to diversify revenues and reduce overheads to emerge well positioned to take advantage of the expected upturn in the sector, particularly in the UK and USA which are leading the global recovery,” he commented in a release.
“My personal mission remains to steer the company back into profitability and therefore increase shareholder value."