Member Info for MB10

Well at least the frustration is increasing the share chat count ;-)

Big article in the Sunday Times magazine.

https://www.thetimes.co.uk/article/inside-the-korean-culture-machine-that-conquered-the-world-s0fqqj7lx

A reminder that LVCG have tapped into a growing global phenomena.

Well said KNIGEL.

These BBs attract some weirdos, including one that has never held nor ever intends to hold, yet has some kind of DC fetish. Honestly if you hate DC that much then do something about it, don’t whine on an anonymous BB and attack everyone else except DC (and I’m sure that someone will enlighten me how attacking private investors is getting back at DC). There are others that attack lvcg too, yet if you look at the “amazing” shares the trolls p are ramping its not such a great story (I can give a very long list starting with BOO, THG, AMGO, PYC, DMTR, SENS, LOOP, NAPS, ….), hardly the “investing geniuses” they are trying to present themselves as. Pick any share near all time lows and you can see the same pattern, yet go look at those shares where the market suddenly realises the value in a share and how underpriced it is, and the trolls are nowhere to be seen. Those types of people are mugging off ordinary investors.

Then you have the moaners that want to have everything laid out in front of them before they buy, well reality check, if everything was fully laid out, the share price would be an awful lot higher. The main reason people take risk and invest in aim shares is the returns by finding an undervalued gem are much better.

We are waiting for financial guidance to be restored here, until that happens you have to piece together scraps of information. Latest anyone has is a promise of September, and last time I looked we are still in September. The share price has been devastated by covid, which lasted way longer than anyone expected, but the company survived and has added high growth divisions. The big difference IMO at lvcg is that it’s not all just empty promises. Yes those new deals are taking longer than anyone expects, but look back to this time last year and KPOP was just a promise, now one festival has been delivered and there are two in the bag for next year already. Next year promises to be a big growth year with bricklive hopefully back to growth, KPOP expanding, the cycle race (entries opened yesterday), the Volvo ocean race stopover, Formula E, efest and StartArt. Is everything perfect at lvcg, of course not. But show me any aim share that is perfect. There’s always something that the trolls can complain about. Hopefully the market will begin to realise how undervalued this is, DC can deliver what he said he would.

What are some of you on about. “Issues with accounts” “issues with auditors”. There’s nothing of the sort. You are literally just making that up.

Of course it’s frustrating to be waiting on the financial guidance being restored, and the Chairman promises much and it dosen’t always come good in the timeframe he promises and yes he isn’t very likeable and is a greedy narcissist. But those trying to spin that the business is not performing nor growing would be totally wrong IMO.

If we take the original business, this year we have seen the BL business recover to be an all year round business again, plus more of the popular Brickosaurs tours were built (and paid for) as well Bricklive live events have restarted first with Bricklive in the park and now Toulouse. Before covid hit all live events businesses, the bricklive business alone was predicted to generate an EBITDA of £2.834 and an operating profit of £1.788 (in 2021). Those figures were already adjusted downwards to take account of China. No reason it cannot reach that in the future.

But reflect on what has happened since. We have seen

- KPOP Festivals established and the first event held (recurring contract for Frankfurt placed and a 3 day weekend festival at the O2 in London in Sep 23 established). Promises of more this year and next year as well as better economics and better merchandising and streaming. Compared to the original bricklive business this has even more potential to generate revenue in the future.

- Formula E in Cape Town signed (5 + 5 year contract) and construction work on the track started (costs covered by City of Cape Town) with inaugural event planned for Feb 2023. £350k management fee already being paid. Again this division is in a growing area linked to sustainability and has good potential to generate revenue and profit.

- Efest concept established and planning going ahead with conferences, races and a golf tournament. Targeting 4 other host cities.

- One of the biggest Participation Cycling sportifs taken into group and now back to full capacity with its associated festival. Volvo ocean race hosting of Cape Town stopover in Feb 23. Best of food and wine events started.

- Bringing all of StartArt into the group with projections of £1.5m EBIT in 2023.

The group now has 4 divisions that are all growing, yet the market cap is only £8 million. Remember that In 2017 the original group did its IPO at a market cap of £15 million and that’s before they brought Brightbricks into the group for £9 million. The group clearly has more potential to grow and deliver value than when it started IMO.

Financial guidance hasn’t been restored yet, so any forward projections are just speculation/educated guesswork. The last heard was that the independent brokers note will be released in September, (which means that forward projections will be based upon reality from the first kpopflex) and discussions I’ve had with Sarah are that It’s being worked on, no doubt being updated with the StartArt projections. So not too long to wait hopefully.

All 4 divisions are in growth markets, with long term recurring contracts, and logically the sum of the parts should be additive. But saying that there’s no information to base predictions on (or that the only information is from word of mouth from DC) simply isn’t true. Take StartArt, the RNS gives clear EBIT projections of £488,000 for 2022 and £1,482,000 in 2023. That would value that division alone at £5 m this year and £15 million next year on a P/E of 10 if those targets are achieved. And yes I know that you need to factor in the whole company and the central costs, but if the other divisions are also profitable and growing, the idea that the sum of the parts will only add up to todays tiny market cap of £8 million is nonsense.

And if the prospects are so terrible, why did Premier Miton increase their holding?

Two new bricklive events. The first is another bricklive live event in Toulouse in October. The 2nd a pawpatrol trail in Germany.

https://www.bricklive.co/

https://www.regioactive.de/konzert/kid-s-weeks-im-breuningerland-ludwigsburg-breuninger-2022-09-19-sfC5ClF4rv

Entries for the Volvo ocean race increasing steadily.

https://www.theoceanrace.com/en/news/13079_Holcim-PRB-confirm-new-IMOCA-entry-in-The-Ocean-Race.html

https://twitter.com/streamssocial/status/1567032294564630528?s=21&t=TzBNUq5nF7RyXKFWFtbIWw The collectibles & NFT market is booming. Brands are riding the web3 wave giving their audiences what they want by creating limited edition virtual items. Check out our latest blog to find out more #NFTs #NFTCommunity #collectible #blockchain #blog

https://www.theguardian.com/world/2022/sep/04/korea-culture-k-pop-music-film-tv-hallyu-v-and-a

https://www.france24.com/en/live-news/20220904-k-pop-k-drama-k-art-frieze-fair-lands-in-seoul

“We have developed a purpose-led sponsorship strategy for E-Movement to enhance the commercial value proposition of the Cape Town E-prix”

Good find John. Clearly been a lot happening behind the scenes preparing for an event that the trolls claim has either been cancelled or will be done too late to organise properly.

Sometimes the trolls can raise good questions. How much lvcg gets from selling the art for example is a perfectly valid question and goes to the heart of the profitability of that division.

I know that all the costs for Korea are covered by the sponsors, and they make money from ticket sales from the event and from art sales (physical and NFTs), and I’m sure that In one of the investors presentations they said the sales were split 50/50 with the artist. StartArt will also make money on its new membership structure as outlined in the last investors event.

Started today with the press event last night. All the costs for StartArt are covered by the sponsor. Looks like they make money on entrance fees (tickets are circa £8, or vip tickets at circa £80, or there’s an NFT membership at circa £120) as well as selling the art and on selling the NFTs for which they take crypto payments. Looks busy enough and plenty of the KPOP artists turned up, so could end up being more lucrative than anyone thinks.

https://www-job--post-co-kr.translate.goog/news/articleView.html?idxno=59038&_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

https://tickets-interpark-com.translate.goog/goods/22009768?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

At some point those who are actually shareholders believe that there will be news that will clearly show the value of each of these elements of the business as well as the publication of a brokers note that will verify some of the comments about growth and profitability being heard at investors events beyond the words of the Chairman. Like all CEO/Chairmen he has a penchant to overestimate how quickly he can get some of these complex deals across the line, which leads to the sad self confessed trolls that spend their every waking moment only commenting a share they have never held nor ever intend to hold, saying that it’s never going to happen or that the deals have fallen through or been cancelled. We saw this at this time last year with KPOP where plenty came this BB to say that KPOP would never happen and yet here we now are with the first (profitable) event completed, expectation of a 2nd this year, and two in the bag for next year, with the company working hard to increase LVCGs share of the pie. We have seen Premier Miton increase their holding here, and those who hold via ETX increase their exposure, and it’s likely they are privy to more information than individual investors are. We are yet to see how big that pie is in black and white, but hopefully it won’t be too long before we do see this.

Markets are irrational, especially AIM. There are plenty of companies out there that have tiny (or in some cases zero) revenues, and no prospect of any revenues for a long time, some of which have less good prospects, many even have the dreaded CLNs outstanding, with Directors that receive “star billing” on “dodgy Directors 101” (indeed I’ve seen some BB commentators who troll the Chairman that don’t see the hipocracy or paradox of putting their money into companies run by the absolute worst of those directors or indeed significantly loss making companies that are heavily debt laden) and yet some of those companies are valued at way more than LVCG. I can also give you plenty of “wheelie” good examples where twitterati commentators troll LVCG and yet ignore the massive challenges in the “quality” shares they have been pushing (go look at BOO for starters and tell me how that has fared)

The LVCG share price has been smashed down by covid. Raising money in this environment has come at a significant cost, but this has been no different here than in many other shares in this sector. Financial guidance has yet to be restored some two years after it was removed, so the only thing investors have to go on is their own research and as many on here will testify, your average AIM investor does very little research.

What is expected here is news that completely changes the prevailing narrative. The sum of the parts should be worth more than the tiny £8m market cap, especially as the 4 divisions of the company are all in growth markets and there are significant barriers to entry to competitors. Take the recent aquisition of StartArt which promises the addition of circa £500k EBITDA contribution from that division this year and circa £1.5m next year. That should value that element at a minimum of £5m this year and a lot more next year. 3 years ago Brightbricks was purchased for circa £9m which has been paid for with shareholders cash (@65p), and this division which has expanded into the lucrative area of tours and restarted the live events, is getting back from covid. Then there is the LCSE division which includes the cycling, volvo ocean racing and hopefully the soon to kick in formula E with its 5 + 5 year recurring contract, a division which is already EBITDA positive. Finally there is the KPOP division that we already know is in profit for the first event and two more events are already planned for next year, and where we know that streaming and sponsorship has the potential to grow this division even more.

https://www.businessghana.com/site/news/Business/269719/E-Fest-Cape-Town-to-host-Africa’s-Green-Economy-Summit-to-connect-capital-to-projects-in-Feb-year

http://nowcroydon.uk/event/23038-brickosaurs-dinosaur-trail-aug-24-sep-13

Month long rental, with a repeat customer, of their most popular touring set.

https://topcarnews.net/a-brief-history-of-formula-e-before-the-cape-town-e-prix-graces-sa-s145511.html

Exactly John, seems to be a massive amount of planning being done for this event that’s apparently been cancelled. In keeping with the flip flopping positions, those claiming that it’s cancelled flip flop straight into the “even if it does go ahead there’s insufficient time to plan”. Yet the planning for this has been 2 years in the making, the roads for the circuit are being improved (at cost to the city of Cape Town), partners are in place and the efest, golf and sustainability conferences are being prepared. Sure the final confirmation that it’s formally in the FE Calendar has still to be made, but saying it’s actually cancelled is market abuse no more no less.

https://www.carmag.co.za/speed/motorsport/formula-e-history-cape-town-e-prix/