Member Info for MB10

Are lvcg finally in the right place at the right time with KPOP and StartArt?

The popularity of squid game is highlighting Korean culture. BTS have some big connections to lvcg through formula e, StartArt, bricklive and KPOP.

Extract from the Sunday Times Today shows their popularity

https://www.thetimes.co.uk/article/hallyu-how-korean-culture-conquered-the-world-kb2swqwb5

We’re now spelling music with a K, too. The shiny, garish, seven-member boy band BTS, short for Bangtan Sonyeondan — or “bulletproof boy scouts” — racked up 108.2 million views on YouTube in 24 hours for their hit, Butter. South Korea has a population of just 51 million.

Even global mega-acts such as Coldplay are piggybacking on BTS’s fame, after the boy scouts knocked them off the top of the Spotify charts. Now they’ve paired up to make a track, My Universe, catchy enough to rival Gangnam Style, the Korean earworm by Psy that went viral in 2012.

Korean conglomerates played a big part in developing K-pop and packaging it for a global audience. Samsung and Hyundai are sponsors of BTS, with their made-for-TikTok dance routines and viral hits. It has paid off in spades. BTS alone are estimated to contribute $5 billion to the Korean economy annually.

Cicliteria shouldn’t be talking to shareholders directly, so that’s not a reason. Sarah Ullman (the COO and investor relations )answers all communications that are sent to her, so you clearly haven’t tried.

Still not answered the question.

You still haven’t answered who you were in the past Mr/Mrs Long term holder. New account for less than a week and have held shares long term, know a lot about the company but said nothing ever, but this morning chattering away like a budgie with your whole “invested but worried” routine and demanding that the company releases RNS’s. Forgive me therefore if I’m slightly sceptical of your motives.

Why not contact the company and ask that instead of spamming the board up with exactly the same point? Their contact details are on the website. Email them at: info @ livecompanygroup.com

Except there is plenty of evidence from regulated communications that shows what we are making from the cycling event if you do some actual research. Its north of £250,000 and they don’t have many costs as those are covered by pick and pay as well as most of the marshalling for the event being volunteers. All the timing equipment for the event exists already (they have enough for 40,000 entries) so again low costs.

Seems the only one making up those stories is someone posting on this board. If you did any research you would know that close brothers leasing Ltd have a charge on the bricklive assets against the CBILS loan; sorry those facts don’t quite fit the story trying to be spun. Given you only created that account a week ago I’m wondering what name you had here in the past?

Company seems to be doing just fine over the summer and is well back to revenue generating events, landing some good contracts over the winter season, as well as the cycling which is taking place today (and will also take place in early March 22) with the promise of more to come and some big deals like kpop still to land.

Could be the transformational deal that turns this around but depends on the deal tbh. From their presentation it says “Revenue model are fees and commissions, TV/broadcast and ticket sales”

BTS are the biggest boy band on the planet with massive followings. They haven’t done many concerts due to covid so when they do one there will be massive demand (and previously tickets normally sell out in minutes). They already have a 60,000 seater stadium in Germany lined up. Look at where else BTS are connected to the group (formula e, StartArt) so could also be merchandising sales as well as potential sponsorship. Those on the recent investors call were given the impression that this would be a big deal when it comes through.

If you read back on this board enough there has been the “David might buy us out” risk been raised plenty of times by posters. Personally I think that remains an extremely unlikely outcome, not least because there are now others (the new Directors in LCSE) that have shares and depend on this being successful, the fact that David needs this to be successful and to sell it on for his own retirement (he is no spring chicken and the majority of his eggs are in this basket), plus if he was going to do that he would have done it before now IMO. To do it he would have to buy more shares (the price would go up) and then have to offer for the company at a price much higher than today and then get 75% of all shareholders to agree.

The free float remains quite low and its unloved so it won’t take much to turn it around IMO. If you are in to Technical Analysis there are also key gaps in the chart to be filled on the way up. Company is currently valued the same as their inventory of loose bricks, never mind the 1000 plus models that they have (which as shown below are becoming cash cows as they have already been paid for). Business is opening up across all the activities that they are running as evidenced by the increasing contracts that they are getting from customers old and new.

The big touring assets command some extremely good rental rates. Those will always be commercially confidential to each client as it depends on the size of the tour, popularity, and season (and no company in their right mind would tell you exactly how much each client is charged). There are two separate independent research notes (extracts below) giving the value. Then look at the 2021 Q1 revenue for touring sets of £250k which was basically 3 months rental at Naples Zoo and Brickosaurs Israel which shows that their big touring sets even in offseason command between £40/50k a month.

As to dropping further when the Fe deferment is RNS’ed its already dropped 15/20% on that rumour. Bear in mind that the share price never rose when Fe was announced in the first place, so even by AIM standards that’s harsh. Ultimatly depends on what they include in the actual announcement.

SP Angel research note: https://www.livecompanygroup.com/pdfs/LVCG_Initiation_05112020.pdf
Solid Economics and Payback: The average cost of one of the larger touring set of assets, for example the Ocean tour with over 25 models, is about £300,000 and takes about 3 months to complete. Once the models are in production, the touring schedule can begin to be established. We estimate that an average exhibit term is about 3 months and generates revenue of ~£100,000-150,000 with gross margins of about 80%. This implies a cash payback period of 2-3 average term (3 months) bookings, or 7 to 9 months overall. Understandably, not all tours are booked for every month of a year, particularly when shipping times, and cleaning/maintenance may be required between shows. However, optimisation of a tour’s travel itinerary can result in significant profitability for LVCG, particularly for those higher demand tours.

Shard Capital Research Note: https://www.livecompanygroup.com/pdfs/LVCG-Shard-research%5B1%5D.pdf
The economics of touring assets
The economics of the Zoo touring assets are highly compelling. A large set of assets typically takes three months to build and costs around £300,000, of which steel, which provides the core support of the structures, represents almost half. Specialist bricks, not necessarily held in stock at Bright Bricks, also represent another significant cost, with around 4,000 different types of bricks used to create the Zoo assets. Assuming a theoretical 100% asset utilisation, which cannot be achieved in practise, each set of touring assets could yield up to an estimated £600,000 of revenue per annum at peak rates and a gross profit, at an 80% margin, of £480,000. This equates to an annual return on investment of 160% and a cash payback of seven and a half months. In reality, given the need to move these assets between locations, with cleaning and any routine maintenance also required, 100% asset utilisation is impossible to achieve. However with high demand and careful planning, asset utilisation rates of at least nine months are perfectly feasible

July, August and September have been good revenue generating months and that looks like its going to continue for the rest of this year as customers old and new become more confident and want to attract footfall to their venues.

A summary of all the revenue generating events that the company have in October:

Cape Town Cycle event 10 Oct - https://www.capetowncycletour.com/

Livingston Paddington - https://www.thecentrelivingston.com/whats-on/news/paddington-trail

Black watch Museum - https://theblackwatch.co.uk

Sterling BID - https://www.whatsonstirling.co.uk/event/097359-bricklive-fantasy-kingdom/

Bricklive Houston - https://www.eventbrite.com/e/bricklive-houston-animal-paradise-tickets-180268988397?aff=ebdssbdestsearch

Bricklive outer space Bluebell railway - https://www.bluebell-railway.com/brickworks-adventure/

Saachi Gallery - Hard launch of StartArt https://startartfair.com/

Display of bricklive model at COP26?

Cape Town vaccination centre (run by LCSE)

Of those, the cycling, bricklive Houston and the launch of StartART are significant events IMO

Then looking forward for the rest of the year they have already landed the following events with the promise of more to come :

Launch of ticket sales for March 2022 cycling event in Cape Town
5 Nov - Singapore Zoo Brickosaurs
15 Nov - Les Grand Prix Belgium
19 Nov - Eastleigh BID
20 Nov Naples Zoo Supersize
11 Dec - Canterbury Museum

Both Singapore Zoo and Naples Zoo are big touring sets that along with Bricklive Houston will be generating a nice revenue.

https://www.livecompanygroup.com/pdfs/bl_calendar.pdf

Seems that there is a significant new contract, with a new partner, for a big tour in Houston lasting almost 6 months starting in a couple of weeks. That will be a big revenue generator over the winter period, along with Singapore Zoo and Naples Zoo.

Off the red travel list.

https://www.dailymail.co.uk/news/article-10069287/Grant-Shapps-removes-47-countries-foreign-travel-red-list.html

Seems that the AIM game of “sell on rumour, sell on news” is alive and well. In terms of £ turnover, its the zoo contracts that are the most valuable. Typically they last for 3 months and pull in £100 to £150k with the blockbuster tours getting more and some of the smaller tours a little less. Brickosaurs and Supersize bring in the big bucks and those are rented all the way through the winter period with Singapore Zoo and Naples Zoo. The zoo rentals pick up again in the spring with Brugers and Granby zoo, plus whatever they land before then. The cycling contracts entry fees should pull in between £0.5 and 1m depending on the number of entries. But nobody really knows what the Formula E and efest events will bring in, although the both the COO and the Chairman have hinted that these will dwarf the bricklive revenues. There is also the KPOP concert when/if that happens. IF Fe turns out to be delayed until 2023 as per the rumour then that’s clearly a disappointment and more waiting by LTHs for the recovery. As to cash, its looks fine through to the spring IMO and if they get enough events for bricklive, cycling and kpop plus some of the other events they stand a good chance of breaking even next year IMO.

New (significant) contract with Singapore Zoo
new contract with Capron Zoo
New contract in Italy
New contract in Paisley first Bid
New contract in Bradford Bid
New contract in Eastleigh Bid

Lol, more total nonsense that there has been “little in delivery”.

Let’s look at the LCSE business. Last year they did an RTO of a company with the proposal that they would take forward a bid for the formula e race in Cape Town. Since then they have delivered the following.
- identified a partner in Messe Frankfurt to delivery the efest
- landed the contract for delivery of the formula e race
- got cape town onboard to support the race with improvements in infrastructure
- got a travel partner in place
- got 2 x broadcasters in place
- given more details of the events of the e-fest with the golf tournament hosted by Ernie Els, the pop concert and the activities in the village

So it seem that they are delivering pretty well on the promise

The website for the eprix in cape town gives some clues where some of this anticipated significant revenue will be coming from. Note that they have already signed up SABC and Supersport as the official broadcasters. That will no doubt bring in some healthy revenue as well as increase the sponsorship opportunities they could land (what sponsors want is a big audience not just the locals and having worldwide free to air and pay tv will bring that)

https://capetowneprix.com/partners/

That website is pumpedordumped dot com

The filter on this website screened it out

Exactly SEA7, its clear that Pmmbns1 hasn’t looked at these boards and cannot distinguish those posters who are posting research and information on stocks they hold and those who are endlessly pointing the bid/ask and other inane comments.

You can check on the website ****************** where some very clever software writer has written in the main ramping phrases on this site and if you want to get up the leaderboard you can include those phrases in your posts (e.g. “3 vs 1” “MMs want your shares” “I wouldn’t want to be out of this for the weekend”)

And as for “letting others have a say” he clearly dosen’t understand how bulliten boards work. Nobody is stopping anyone posting on these boards, but this is a very quite one in comparison to others. Perhaps pmmbns1 could post some actual information instead of all his whining and be a giver of information rather than just being a taker.

That’s totally false pmmbns1, the bid from the market muppets never dropped below 4p. Just because you are using an app that records the spot price of the shares that are sold instantaneously does not mean the price dropped to that level.

As to your “evidence” of collusion and accusation of joint enterprise, that is neither supported by any actual evidence and is totally false. Suggest you go an read the posting rules before you post false and misleading information as well as engage in personal attacks. Anyone is free to post on these boards. Some post information and research, some just come on to whine; I’ll let those reading the board decide into which category your posts fall

Your suggestion that SEA7 and I are in some kind of collaborative joint enterprise to mislead investors is totally false. Some with your previous suggestions of “inside PR jobs”. Just total nonsense. As to your “share price under 4p” that’s false too; You are probably referring to the “bid smasher” that sold underbid yesterday. AIM is full of idiot traders; the first rule of selling is that if you sell when there is no bid the market muppets will give you a terrible price. If they had put this in as a limit sell they would have got a better price particularly as it turns out, more shares were bought than sold yesterday. You seem to have issues with everyone that posts information in support of the thing that they are invested in. That is the purpose of these boards for investors to share information and discuss the company whereas you are clearly just posting to be disruptive. But good luck to you pmmbns1, but as said previously maybe direct your anger about people selling to those who are selling.

That’s 3 contracts in less than two weeks with old and new customers; clearly shows that there is a pent up demand. The recent contract wins may not be big earners but they all count and importantly they are in the winter period so will all help with cashflow. The really big earners are the zoo contracts, and there is Singapore Zoo and Naples Zoo over the winter (Brickosaurs and Supersize which are their biggest blockbuster tours), with some big zoo contracts next year too (Brugers, Granby and no doubt the return of Marwell). Some posters complain that “no value is ascribed to the contract wins”, however, there is plenty of information out there in research notes that with a bit of cross referencing you can link to the accounts that gives a very clear indication of the ballpark value of these contracts. Its clear that the company had a good summer despite continued covid restrictions and business are well opened up again and looking to attract people back to the high streets. The new businesses are getting going with the cycling event taking place in 8 days time and returning to the main calendar of a March event next year. The team in South Africa also won a contract to run the biggest vaccination site in the country, which will be pulling in cash. If you do a bit of basic analysis of the balance sheet and the cashflow then it looks like they can get through to early next year before the Formula e and e-fest events take place in February which IMO will transform the company completely.

I understand that the investor event was quite positive too. If what is being touted about the future revenue potential of the new division/events is delivered this could be the biggest turn arounds on AIM. The company has already stated in the RNS of 13 July 21 “The final details of the race are in the process of being confirmed but it is thought that the potential revenue and profile uplift the Formula E race brings to the company will be significant