Member Info for MB10

If you are gearing the company (or elements of it) up for sale then having the 2022 accounts signed off by a (new) top 10 auditor would be helpful ;-)

There is literally zero evidence that there are “issues” with the accounts, in fact all the actual evidence is that they’re absolutely nothing wrong and it’s just taking the auditors more time than expected. Suggesting otherwise is just making stuff up.

If the average price of a ticket is more than £113 then the breakeven point is considerably less, and is more likely between 45 and 50%. Given that it’s likely the vip tickets and pit tickets are selling first, imo breakeven will more than exceeded (even if it is 60%). Madrid sold 65% of tickets and the fan base isn’t as good as London. Hopefully we will see all the acts announced soon.

The filing at company house not only backs up what was put in an RNS that there are “no matters connected with their resignation which should be brought to the attention of the new auditors, members or creditors of the Company.” but their letter goes even further and clearly says that there are “no other circumstances” that should be brought to their attention. That’s quite a difference from what some on here have implied.

The change to a top 10 auditor IMO meets the clearly stated strategy of lvcg to line up the business (in whole or in parts) for sale.

Bricklive alone as a stand alone business is worth at least double to current market cap, and that’s just the stock of bricks and touring sets. Brightbricks was purchased for £9m in 2018 and since then millions in new brick stock has been added, and the touring business has been developed to add to the live touring business, as well as all the long term partnerships with IP providers. The recent sale of 2 x under utilised touring sets (there were 28 touring sets at the last count) shows how much that division is worth.

But it’s the KPOP lux format that’s the most valuable IMO. These concerts aren’t just one offs, they are multi year events. It’s taken a while to build all the relationships with SBS and the stadium providers, and the overall format but they are refining the models as they go along. Frankfurt was profitable, Madrid was profitable, and it looks like London (if they sell out) will show what the potential profitability of these events actually is.

Filed at company house 26 June.

12 May 2023

Dear Sirs

Statement of circumstances in accordance with Section 519 of the Companies Act 2006

In accordance with our responsibilities under Section 519 of the Companies Act 2006, we are writing to confirm that there are no circumstances in connection with our resignation as auditors which we consider should be brought to the attention of the company's members or creditors.

There are no other circumstances which we consider should be brought to the attention of the company's members or creditors.

Yours faithfully,

Moore Kingston Smith LLP

Nice to see the “old” simple back again. ;-)

“We expect LVCG financials to be released during August with trade resuming shortly thereafter.”

https://media.umbraco.io/live-company-group/qu3b4wdg/lvcg_27072023-update.pdf

That’s in the updated brokers note. Lvcg are a small team, and as I previously said, they are probably running around getting London off the ground. Given the choice of dealing with the auditors or getting London kicked off I know which gets my vote. If the accounts are released this month will you apologise for scaremongering?

As to those saying “the way the company is operated” an awful lot get ascribed to the company and the chairman, yet there are a lot of things that are not entirely within his direct control. Take the drip feeding of artists for the festivals. Everyone on here (including me) thinks you should release the whole line up all at once and sell the tickets. I can tell you that the company thinks that too, but it’s SBS that are determining the timetable for the artists. Sure the company should be having “more leverage” over SBS, but not only are SBS a billion pound company, but SBS are key to the whole thing to provide quality and popular artists. So while it’s frustrating, as long as the concert sells out I can live with it. But maybe not blame the company for absolutely everything?

They are getting good stoical media engagement and ticket sales seem to be doing well, although like others I’d be wary of assuming anything from the ticketmaster website at this stage as they are probably haven’t released all the seats yet.

The initial budget was based on an average ticket price of £113. If the average ticket price is just £20 higher then that’s an extra £1m profit if they sell the events to 85% capacity (50k).

Bricklive reading rental that started yesterday looking good too

https://www.shutterstock.com/editorial/image-editorial/mochladon-made-22518-bricks-brickosaurs-unique-collection-14048336ay?consentChanged=true

Bricklive rental looking good.

https://bridlingtonecho.co.uk/an-animal-paradise-at-sewerby-bricklive-event/

Exactly KNIGEL, this event is still 6 weeks away so plenty of time to arrange everything. You would only sort out and advertise the live streaming closer to the event in any case. Understand there’s going to be a big Korean cultural festival around the 02 over the weekend too, which means more revenue and the opportunity to sell more merchandise, and will no doubt be very attractive to potential sponsors. Sure we would all like to see the whole line up released now as would the fans, but it’s not. Hopefully the last RNS said “in the coming days” it won’t be that long before the line up is released. Two of the headliners are pretty big hitters in the KPOP world.

TSG and I actually have the same view of the potential profits from this event if it sells out. If they sell 70% they should make £1m profit, 85% means £2m profit and sell out is £3m plus profit. All of those figures would be more than the brokers note assumptions, and are based on very small assumptions on sponsorship, streaming, and merchandising, so if they get this event right we could see this really take off.

As previously noted, the entire company is only valued at a tiny £5 million. Sure not everything is great, the Chairman attracts more hatred than you can shake a proverbial stick at, and there’s plenty of issues you can point out why the share price is where it is, but for a revenue generating company and one that’s predicted to make an actual profit this year, with a growth path in a growing sector, that’s way undervalued.

Is that for the concert that definitely isn’t going ahead? Or for the one taking place in cloud-cookie-land?

#askingforaclown

Because the one in London seems to be attracting very significant interest in the pre sale today.

The ONLY attack on here are the ones you are conducting. Yesterday you made unprovoked unsubstantiated direct attacks in me and a number of other posters, those comments were removed by admin, and now you are trying to say you were attacked.

You really can’t make that up. Everyone reading this board knows the actual truth no matter how much you continually spam the board with your nonsense.

If there was “nothing wrong with your posts” why are they being removed by admin?

Bottom line is that the draft budget for London shows that if they sell 85% capacity they will make a circa £2m profit. That will smash the brokers note target. Any actual investors should look at the brokers note that was updated after Madrid:

Forecasts: We include assumptions for agreed events, license fees and ticket sales. The upside potential from merchandising and streaming revenues is not fully captured in our forecasts. As such we believe these are fairly conservative and that LVCG will deliver strong performance against this base-case forecast model. We forecast EBITDA losses of £1.5m in 2022E, followed by positive EBITDA of £1.25m in 2023E, and £4.3m in 2024E primarily supported by growth in the KPOP brand and increased license fees. We expect the Group to begin generating Net Profit by the end of 2023E.

Outlook: Diversifying the Group’s revenue streams is clearly starting to pay off, as the demand for live events, post-covid, soars. We expect LVCG to build on this momentum with increased revenue from live event licensing agreements, as well as merchandising and streaming sales to drive value for shareholders. Note that a simple DCF analysis on our forecasts produces a baseline expected value of just under 11p/share for LVCG

I’ve got no issue with anyone posting their opinion , but I do have an issue with those that post false and misleading information.

The clown posted that “London wouldn’t go ahead”. That’s clearly false and misleading information. But having been caught out the clown is trying to cover his tracks by posting even more nonsense that “no results for Frankfurt were ever disclosed”. Again that’s false and misleading information. Frankfurt results and the share to lvcg was clearly given on 1 July 22 and on 31 Sep 22. Frankfurt made a profit, even although the 2nd day was only half capacity and the short notice costs for the 2nd day were more than expected. If it had sold out, the profit to lvcg would have been more than £1m.

The clown posted that “we have no idea who owns what part of the event”. Well firstly there is no “we” because the clown dosen’t own a single share in lvcg and secondly “KPOP LUX is a 100% subsidiary of Live Company Group and organises, promotes and co-promotes, K-pop concerts in Europe and Asia.” SBS provide the artists and does the promotion. They are paid a fee for this and this is part of the event costs. It’s not that difficult to understand tbh.

The event economics are not that complicated. It’s not like we are relying on some complex financial derivatives or anything. They make revenue from selling tickets, sponsorship, selling merchandising, meet and greet events and streaming. They have costs to SBS for the artists, hire of the stadium, cancellation insurance etc. Take one. from the other and you are left with either a profit or a loss.

The clown says that “no results from Madrid were posted”. Yet a quite detailed account of Madrid was posted here https://media.umbraco.io/live-company-group/qu3b4wdg/lvcg_27072023-update.pdf and despite only selling 65% capacity, Madrid made a profit “We expect modest net revenue in year one of the show”. That event was only a couple of weeks ago, and they are still collecting figures from merchandising and streaming, so expecting a full breakdown at this stage is simply ridiculous.

That’s 4 times the clown has posted false and misleading information. Given the level of trolling activity yesterday especially from those who clearly don’t hold any shares and on a share that’s close to rock bottom and is in suspension, it really does make you wonder why they are all so concerned and also why they have to go to all the trouble of literally making stuff up. Get a life guys and perhaps try and put a little bit more effort in on your trolling. Take a bit of pride in your work ;-)

Official ticket website

https://www.theo2.co.uk/events/detail/kpoplux

Overall capacity for 3 nights is 60k. I’ve seen a draft budget for this event and it covered all the things I was expecting and it took a very conservative view of forecasts for sponsorship, merchandising meets and greets and streaming. That conservative view was based on 85% attendance, and give a profit for 2023 that was significantly above that which the brokers note is forecasting. Factor in that Madrid only sold 65% and that Frankfurt is still in doubt, and the expected profit is still IMO significantly higher than being forecast by the brokers note.

As to the cashflow, they were in a cash crunch at the beginning of the year and did a short term lending with RF that was equity based and that was intensely disliked and impacted the share price significantly. They sold some under-utilised bricklive assets recently to get over the JL funding issue, so it’s hardly a revaluation that they didn’t have £1.25 million to fund London up front kicking about in the company is it.

Bottom line is that if London sells 85% (circa 50k tickets) then the turnaround for lvcg will be bigger than forecast by the brokers note. The headline acts look pretty good and the other acts are being announced “in days”. London also has a good KPOP fan base, and they only have to sell 50k tickets to achieve that target. That’s less tickets than they sold overall in Frankfurt, so it’s looking pretty good to me.

And the brokers note is already undercooked. It’s not like the company is valued at 10’s of millions is it? It’s valued at a tiny £5 million, less than the stock of loose bricks they have on the books.

They make revenue from tickets sales, sponsorship, merchandising and live streaming. They settle the bills from the revenue and are left with a profit. If they sell 85% the profit will be circa £2m.

Honestly it’s really not that hard to understand ;-)

The other inconvenient fact is that in the last investors call DC said clearly that he was seeking partners and was definitely not planning another fundraising nor further dilution for existing shareholders (beyond the warrants and StartArt consideration that’s outstanding). Todays RNS means he has yet again done what he said he would do.

The trolls complaining about the financing arrangements would be complaining even more if he had raised funds for London would they not?

If London sells to 85% then even with the additional financing costs lvcg will smash the brokers note profit target. That puts them in track to turn a profit this year and make even more next year and should exceed the 11p target. By the end of the weekend we will know if the reaction to ticket sales will be good or not.

“Share” can refer to many things. Live nation for example take a small “share” of the ticket revenue to cover their costs. My understanding of the kpoplux structure is that the rest comes to lvcg.

I was always clear that if Madrid sold out it would make a good profit (and way more than the brokers note was assuming). It only sold 60% of tickets in the end, so the profit was more limited (my estimate is £500k).

London only has to sell 50k tickets over the 3 days. The headline acts are bigger, than Madrid and there’s a good KPOP fan base in country. It will easily reach 85% sold IMO. If it does, lvcg will make an excellent profit. If it sells out they will make even more.