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It you can point to where I said that the Chairman has capped his fees “ad infenitium” then I’ll let you away with your comment on me posting “misleading information”. If not I await your apology
MB10. I know you have tremendous faith in the chairman, unfortunately and objectively, the market clearly does not share your sentiment. Don’t shoot the messenger. Additionally, you have posted misleading information and I have had to correct it. The chairman has not capped his fees for anything beyond this year, in contradiction to what you suggested earlier. As a substantial shareholder with millions of shares, I hope things come right, but I’m here to listen to balanced opinion, not blind faith. ATB
Look WW, you seem to have a downer on the Chairman, I get that, but you have posted misleading information on this BB which I have taken the time to correct. Now you are using language like “material uncertainty” which is disingenuous especially as you make no comment on the potential for the group. I notice that you don’t comment on the additional revenues that are coming from the LCSE division nor do you acknowledge the clear links that exist between BTS, KPOP, formula e and climate change, all of which could have a significant and material impact on the outlook of LVCG.
Thank you for confirming that beyond 2021, DC has not committed to cap his fees at all. What proportion of future revenues DC chooses to take from LCSE (or elsewhere) as fees remains a material uncertainty and hence a material risk to holders.
I’m sorry, but what you are saying still isn’t right. If you read it properly, the Chairman has agreed to cap his fees for the whole of 2021. You will also note that he has forgone his Chariman’s fee too this year. He backdated that to last April as well. Personally I have no difficulty if he takes more if there is a very substantial upturn in revenue and (of course) profitability from the business. But my previous point still stands and that is LCSE is part of the LVCG group, so IF he does that, it will be visible to shareholders as it all has to be published in the accounts.
“Additionally, the Company announces that in light of the continuing global pandemic Mr Ciclitira has elected to cap his international consultancy fees at £250,000 per annum and forgo his £25,000 Chairman's Fee for 2021 (i.e his total remuneration in relation to his services to the Group will be £250,000).“
Thanks MB. What the RNS states is that “in light of the pandemic” DC has elected to cap his fees. It does not confirm that post pandemic - when the revenues from the international business may become meaningful + that the cap will remain. TSG - I suspect he will take substantial fees for LCSE, and in addition any fees he gets from Start Art are currently funded from the £1m LVCG handed over. It all works rather nicely for him. What would have been nice for LVCG shareholders is if the share price had gone to 10p+ reflecting recovery hopes, in the same way it has done for the vast majority of other recovery stocks out there. The reason it hasn’t is because our Chairman has gone a long way off piste, and it is costing us all money.
That might be true but would you rather he takes remuneration from a company that is only 16.3% owned by LVCG or from LVCG itself? He is not getting any younger and his only get out is a takeover then he needs to ensure SP value to LVCG is realised ASAP. Having spoken to him directly fairly recently (and currently inside), I 100% believe he is behind building this back up as quickly as possible. There is no doubt the BrickLive business has been severely hit by Covid and is taking longer than we all hoped to recover but the future is bright on all fronts. As a long term holder I am equally frustrated at the current SP but firmly believe we will be back to highs we were before, not withstanding the dilution needed to buy LCSE and keep us afloat! We now have 2 main revenue streams, plus the SmartArt (which may also be beneficial). I cant add too much on LCSE (as mentioned, I am inside) but MB10s post about the cycle ride being at 50% uptake is very conservative. Good things ahead for LCSE for sure!
Wigwam,
“... I very much doubt there is going to be a lot of cash flow coming from the arts business for a long time, if ever....”
You’ve obviously never used VeVe
NFTs are literally a licence to print money. This is going to be huge.
And yes so far the chairman hasn’t brought other investors into StartArt, but it was a question i posed. IF LVCG are not the only ones funding that adventure would that change the view of that aquisition? Why did the Chairman make the point about third party funding? Plus I note that there was already quarter of a million cash in StartArt as well as assets, so someone must have put that money in there that is not LVGC.
Start Art, which was incorporated in early 2021, (although the concept was developed through 2020) is at the pre-revenue stage and has yet to prepare any accounts. For the purposes of the Subscription, it is warranting as at 31 March 2021 net assets of £1,464,161 including cash of £260,736.
Terms of the Acquisition
The Company has agreed, subject to the passing of the Resolutions at the forthcoming General Meeting, to subscribe for an initial 16.3% of the issued share capital of Start Art at a cost of £1,000,000 with the option to increase its shareholding in the Company to 20% within six months. The Company has also received an undertaking that should Start Art seek additional funds from a third party within 6 months Start Art shall take such steps as may reasonably be required to ensure that the Company's shareholding shall not be diluted below 12%. Additionally, the Company will be party to the Shareholder Agreement which provides standard protections such as pre-emption and "drag and tag" on sale.
17 Feb RNS. He has capped his fees to the group, which includes the new division. Its there in black and white.
And before someone says it is revenue generating from the start, so is a business that hands out £20 notes for £10 each.
Pmm - I very much doubt there is going to be a lot of cash flow coming from the arts business for a long time, if ever. The only cash going in there belongs to LVCG holders and should be going into their pockets, but at the minute it is going into the pockets of DC and his art start-up pals.
But the chairman hasn’t yet bought in new investors. We are entirely funding the losses but receiving just 16% of ownership. Nice for the other 84%, of which I think DC is the majority holder. Re fees - leisure/sport is a new business. Please can you point to where Dc has capped his fees in relation to this business?
Umm - good point re Chairman’s fees. If he takes them from the Arts business they will not show on the LVCG balance sheet as such (16% of Arts owned by LVCG).
If no fees were taken from LVCG by the Chairman then we could think that he was being frugal with the cash flow - but could have severely dented the Arts company cash flow instead . Access to that Company accounts would be needed to see the wider picture. (Smoke and mirrors perhaps but I am more than a little sceptical having seen my share value drop from 70p to present levels - albeit I have averaged down).
Yes I still have belief but too much hype and too little of substance for my taste with recent events not helping to restore my faith in management who seem to take their investors and their cash for granted.
And if the Chairman manages to bring in other investors into the StartArt business? As to fees that DC takes from the leisure/sports business those are all in the group of companies so any fees he takes will all be visible. There have been numerous messages already recorded in RNS that he has capped his fees.
Any idea what the breakeven level of turnover is going to be on the arts business, or when we will get there? Until then, I see us owning 16% of any profit but 100% of any losses ie the chairman will keep rinsing us for more money at the same inflated valuation. The other obvious question which goes unanswered - what fees is DC going to take from the leisure/sports business?
Today’s RNS not moving the dial yet, but not a surprise since there is still an overhang from the placing. Things have turned round and it’s getting back to revenue generation. But I agree that it’s going to take a bit to get over the history of the last 18 months. If you look at the overall narrative, its got better. Got rid of the CLNs, reduced overheads, now shared overheads for the bigger business.
Not really seen the value added from the new businesses yet, closest is the cycling which even at 50% capacity generated £0.5m in entry fees. There’s probably another £1m entry fees to come when they open next years cycling entry too.
But if they land the Cape Town Formula e event, which means the efest too, that will make a very significant difference to the forward economics. Even more if they extend the efest to other host cities.
Then the kpop advanced ticket sales could make a really big impact. There’s already a 50,000 seat stadium identified, plus a partner in place to deliver the event. BTS tickets will sell out in minutes. Put your own view of average ticket costs and multiply by 50,000.
Sorry guys - last word should be Cows not viws.
Predictive text sucks????