IMMO.L Share News (IMMO)

(Sharecast News) - Immersive entertainment operator Immotion Group updated the market on its trading on Wednesday, reporting that despite the current Covid-19 challenges, it had seen unaudited revenue increase "steadily" in recent weeks.
The AIM-traded firm noted that it launched 'Let's Explore Oceans' in mid-October, with total group revenue for October coming in at £0.37m and November at £0.57m, making for an increase of 21% and 87%, respectively, over September.

Looking at its home-based entertainment, Immotion said that since its launch, sales of the 'Let's Explore Oceans' product had exceeded expectations, with total units sold up to and including 22 December of more than 11,000, generating total retail sales including VAT of more than £0.8m.

Following the recent placing in November, the company said it ha dnow secured further stock, as well as identifying an outsourced fulfilment facility, allowing it to target a launch of the product in the United States in the second half of February.

The product was now manufactured entirely in China, with complete boxes being supplied directly to the firm's fulfilment houses.

It said that process would "significantly reduce" product costs going forward.

"We are very encouraged by this launch and we will look to expand both geographically and product wise on a measured basis in 2021, so that we will be well placed to maximise the opportunity around Christmas 2021," the Immotion board said in its statement.

Meanwhile, the company said its location-based entertainment business was still being impacted by the Covid-19 pandemic, and while its UK operations were now closed again as a result of recent government requirements, it had seen one further US site reopen since its last update.

While capacities remained restricted in many, the company said it was "encouraged" by demand.

The Nevada state authorities had recently limited user numbers to 25% of normal capacity in certain attractions, which would be reviewed in mid-January, and which would inevitably impact revenues in the location "significantly".

Operations in the two Merlin locations in Australia - Melbourne and Sydney - remained open, and were now entering the busier summer period.

Immotion said costs had been reduced in the location-based business where possible, and where locations that were company-operated had been closed due to Covid-19 restrictions, staff were being placed on furlough.

"Despite the current trading challenges, we continue to see a healthy level of enquiries regarding possible new installations post the first quarter of 2021, and have a number of active dialogues ongoing," the directors said.

"We remain focused on larger sites but will remain cautious and selective before committing to new sites."

While the short-term impact of Covid-19 was "very frustrating", the board said it remained confident that demand would be "very strong" for its location-based offering when any sort of normality returned.

"This would result in very substantial uplifts in revenue and contribution from our location-based entertainment business."

Finally, Immotion said it was continuing to sell disinfection cabinets under its 'Uvisan' brand, with the business making a "good" contribution in December.

The board said Uvisan was now recommended by Hewlett-Packard for disinfection of all of its virtual and mixed-reality headset range.

The recommendation came after "weeks" of extensive testing by the technology giant.

"In the new year, Uvisan will also launch a new room disinfection product, utilising ambient UV light for the rapid disinfection of room surfaces.

"This will incorporate proprietary control and security features."

At 1129 GMT, shares in Immotion Group were up 17.73% at 3.88p.