RE: RNS19 Nov 2021 20:58
Todays drop is on tiny volume, the market muppets aren’t carrying much stock so aren’t offering a good price for anything above NMS. But its actually the same across loads of stocks today. That means it won’t take much buying pressure for this to move up either.
What’s not in doubt is that lvcg is recovering and having had their best quarter since the pandemic started, it’s well on track to significantly increase its revenue this year and post a much smaller loss. Given that much of the first 6 months of the year were still impacted by covid that’s impressive. And during what in the past has been a slow season, they have some big revenue earners to sustain them through to the spring. Singapore zoo, bricklive Houston, Naples Zoo are big events, and there are plenty of smaller events this season too. Bricklive is clearly getting back to normal next year with old and new customers and expanding into new territories in Asia. Look at the pre pandemic forecasts and revenue for that division is headed towards £5 m for next year with the assets they already have and remember they have 2 new sets in build too. Remember that only 3 years ago they acquired bricklive for £9 million and the value of the inventory of bricks is more than the current market cap too.
Added to that the new division has just had a successful cycle events which will have added more than £200,000 to the coffers, they are running the vaccination centre, have another cycle event in early March as a revenue generator too. Then there is the £350,000 management fee they are getting now for Formula E until the event in Cape Town in Feb 2023. The revenue for that 5 year alone (without the efest, golf and concert) is over £5 million, which exceeds the current market cap. Add to that the volvo ocean race stopover for which they will get a management fee (it’s an event that will be planned over a couple of weeks and they will have the event village to generate revenue too).
Financial guidance is going to be restored early next year and it would not surprise me if they will get into actual profit at the end of next year, and headed for a massive increase in profitability in 2023. At some point the market will realise the growth story IMO.
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