Member Info for MB10

It you can point to where I said that the Chairman has capped his fees “ad infenitium” then I’ll let you away with your comment on me posting “misleading information”. If not I await your apology

That comment applies to any RTO of any unlisted entity. LCSE clearly wanted to have access to capital as well as a route to sell the business IMO. And as to assets, the right to host a formula e race for 10 years is an assets that clearly has revenue generating ability.

Just looking ahead on what the outlook for LVCG as a recovering business. Before the pandemic, the Bricklive business was heading towards north of £10 million revenue and generation of a substantial profit (see the forecasts in the brokers note). Clearly that has been impacted by the pandemic, but things are recovering. Without the bricklive show bit of the business, the bricklive touring once it gets back to business is certainly a £5m plus business and with op costs now split across a bigger group that should get to the point of turning a good profit. But I’m more interested in the potential for the rest of LCSE

The cycling looks like it will generate at least £1m a year recurring revenue (and a good profit as PnP is covering the costs). Then add the Volvo ocean race hosting which next year should add quite a lot. If you look back, you will see that the value of LCSE was done on existing contracts (mainly these two) and did not take account of the potential of the group.

How much will a 10 year recurring contract for hosting Formula e in Cape Town be worth?
How much will the e-fest generate with its pop concerts, e-bike events, show village, and gold tournament? Remember they already have a provider in Messe-Frankfurt to run this. If you go back to PL accounts and look at what the golf tournaments generated, its a lot more (many multiples) than the cycling will generate alone. Then the pop concerts for the e-fest, could it be that they are getting BTS as brand ambassadors for formula e and climate change to do a concert, in which case that will generate substantial reverence too? Remember that will be a recurring revenue.
How much will the e-fest generate if it lands in different host cities? Again that’s likely to be recurring revenue. If you do some actual research you can see that there may be an announcement about Seoul hosting Formula e next year, is that somewhere that the Chairman and BTS have links with?
Then there is all the other stuff they are doing like organising an new ocean yacht race (i.e. effectively move the Volvo hosting to an annual type event). Potentially new mass participation cycling and triathlon events around the world too. The new LCSE division could very significantly change the outlook for LVCG IMHO.

Then there is the KPOP concerts in Germany. Likely that they will enervate £5m advanced ticket sales for each night they run that alone.

All this adds up to a very nice potential, not just a recovery based upon the existing bricklive business, and make the group look even more attractive for a buyout IMO. But keep concentrating and commenting on the past if you want.

Look WW, you seem to have a downer on the Chairman, I get that, but you have posted misleading information on this BB which I have taken the time to correct. Now you are using language like “material uncertainty” which is disingenuous especially as you make no comment on the potential for the group. I notice that you don’t comment on the additional revenues that are coming from the LCSE division nor do you acknowledge the clear links that exist between BTS, KPOP, formula e and climate change, all of which could have a significant and material impact on the outlook of LVCG.

I’m sorry, but what you are saying still isn’t right. If you read it properly, the Chairman has agreed to cap his fees for the whole of 2021. You will also note that he has forgone his Chariman’s fee too this year. He backdated that to last April as well. Personally I have no difficulty if he takes more if there is a very substantial upturn in revenue and (of course) profitability from the business. But my previous point still stands and that is LCSE is part of the LVCG group, so IF he does that, it will be visible to shareholders as it all has to be published in the accounts.

“Additionally, the Company announces that in light of the continuing global pandemic Mr Ciclitira has elected to cap his international consultancy fees at £250,000 per annum and forgo his £25,000 Chairman's Fee for 2021 (i.e his total remuneration in relation to his services to the Group will be £250,000).“

And yes so far the chairman hasn’t brought other investors into StartArt, but it was a question i posed. IF LVCG are not the only ones funding that adventure would that change the view of that aquisition? Why did the Chairman make the point about third party funding? Plus I note that there was already quarter of a million cash in StartArt as well as assets, so someone must have put that money in there that is not LVGC.

Start Art, which was incorporated in early 2021, (although the concept was developed through 2020) is at the pre-revenue stage and has yet to prepare any accounts. For the purposes of the Subscription, it is warranting as at 31 March 2021 net assets of £1,464,161 including cash of £260,736.



Terms of the Acquisition



The Company has agreed, subject to the passing of the Resolutions at the forthcoming General Meeting, to subscribe for an initial 16.3% of the issued share capital of Start Art at a cost of £1,000,000 with the option to increase its shareholding in the Company to 20% within six months. The Company has also received an undertaking that should Start Art seek additional funds from a third party within 6 months Start Art shall take such steps as may reasonably be required to ensure that the Company's shareholding shall not be diluted below 12%. Additionally, the Company will be party to the Shareholder Agreement which provides standard protections such as pre-emption and "drag and tag" on sale.

17 Feb RNS. He has capped his fees to the group, which includes the new division. Its there in black and white.

And if the Chairman manages to bring in other investors into the StartArt business? As to fees that DC takes from the leisure/sports business those are all in the group of companies so any fees he takes will all be visible. There have been numerous messages already recorded in RNS that he has capped his fees.

Today’s RNS not moving the dial yet, but not a surprise since there is still an overhang from the placing. Things have turned round and it’s getting back to revenue generation. But I agree that it’s going to take a bit to get over the history of the last 18 months. If you look at the overall narrative, its got better. Got rid of the CLNs, reduced overheads, now shared overheads for the bigger business.

Not really seen the value added from the new businesses yet, closest is the cycling which even at 50% capacity generated £0.5m in entry fees. There’s probably another £1m entry fees to come when they open next years cycling entry too.

But if they land the Cape Town Formula e event, which means the efest too, that will make a very significant difference to the forward economics. Even more if they extend the efest to other host cities.

Then the kpop advanced ticket sales could make a really big impact. There’s already a 50,000 seat stadium identified, plus a partner in place to deliver the event. BTS tickets will sell out in minutes. Put your own view of average ticket costs and multiply by 50,000.

You must have another account for ramping barnyards as its clear that you don’t hold any shares whatsoever. But good luck with whatever it is you are invested in. PS there were loads of shares getting hit today (and indeed over the past few months) yet I don’t see you making any comment on those, so if you are some kind of white knight here to save investors you’ve got a funny way of going about it.

BTS are the global brand ambassadors to Formula e. Now they are selling art on the StartArt platform. Plus LVCG are looking to organise a KPOP concert in 2022 in Germany. Once they release the tickets for those, they will sell like hot cakes. Plus there is plenty more links with Formaul e, Korea, Climate Change and LVCG if you do some research.

https://www.fiaformulae.com/en/news/2019/december/bts-become-formula-e-global-ambasadors

Global superstar BTS to raise awareness of climate change as global ambassador of Formula E

The synergies are with BTS and their links to Formula e, KPOP concerts and Korea (obviously). Think we are going to see a lot of value adding events in the next few weeks.

Revenue generating from launch. Nice.

“LVCG is pleased to provide an update on its investment in Start.art. As announced on 3 May 2021 the Company has now invested £1 million for a 16.3% equity shareholding in Start.art an online art and digital art platform. A soft launch was planned for June 2021 and the Start.art has announced via press launch in Seoul earlier this morning (see www.start.art) that this has now taken place with the first curated artists onboarded with the full launch including the NFT division of the platform planned for later in the year. The platform is expected to be revenue producing from launch and LVCG is working on a number of collaborative projects including potentially the sale of works from K-Pop artists constructed as plastic brick mosaics which will be marketed on the platform.



The Company also announces that it is expected to release its 2020 results in the coming week.



Chairman David Ciclitira Commented "I am delighted that the Start Art team are progressing the launch of Start.art. With the upcoming addition of NFTs and other divisions of the business, we look forward to hearing more from the team with regards to their ambitious expansion plans in the second half of the year."

Nice. Getting back to a full season of events and shows post lockdown.

New update to the website showing the bricklive events this year. 6 events kick off in June.

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

Supersize John ball zoo USA
Big Cats Allwetter zoo Germany
Animal wonders Belgium
Animal Safari Paisley
Paddington Livingston
Brickosaurs Netherlands

I was pretty sceptical about the new LCSE divisions when they first appeared, but much of that came down to timings of when it was down (and the fact that they had to take such a discount on the placing in Dec as well as give warrants at 10p is testament to that timing) but now that more detail of what is going to be delivered is emerging they could turn out to have added considerable value to the company. It may be the same with the NFT business, but the jury is still out for now.

NFTs and digital art really does seem to be quite a hot sector at the moment.

“soaring interest in unique digital creations known as non-fungible tokens”
“the market for digital investments has exploded”

https://www.thetimes.co.uk/article/pixelated-digital-alien-sold-8m-cryptopunks-art-hbdg930pc

It wasn’t the first piece of bafflingly primitive contemporary art to attract multimillion-pound bids at Sotheby’s but the sale last week of a digital portrait of a pixelated blue-skinned alien wearing an orange skullcap and a face mask may well have been the strangest.

The image, entitled cryptopunk #7523, looks like something your four-year-old child might have knocked up with some crayons. Yet Alex Amsel, a 47-year-old video game developer from Sheffield, is several million pounds richer this weekend thanks to soaring interest in unique digital creations known as non-fungible tokens. The image first sold to a collector in July 2017 for about £1,200. Since then the market for digital investments has exploded, with collectors seeking ownership of viral videos, tweets, games and other online phenomena. At Sotheby’s last week the image, which Amsel acquired privately for an undisclosed price in March, fetched £8.3 million, including buyer’s premium.

It’s generally those selling the shovels that make the most money in a gold rush. :-)

Nice to see that business is opening back up again

Paid off £80,000 of the Chairman’s loan since 17 Feb, which is more than I thought they would. Chairman showing confidence again by converting even more capital into equity. He already has plenty of shares, even despite the recent dilution, so obviously confident in equity growth.