6 Jul 2015 07:00
LITEBULB GROUP LIMITED
("LiteBulb" or the "Company")
Board Appointments and Re-Organisation
Corporate and Trading Update
Introduction
LiteBulb (AIM: LBB), the branded product developer, announces that having made a number of substantial acquisitions in recent years, the Board, with input from divisional managing directors, has recently conducted a review of its business operations and determined a change in strategy. The strategy will now consist of two elements: to accelerate the integration of the operating divisions and to focus on driving organic growth. There is no intention of making further acquisitions in the short-term.
Board Appointments and Re-Organisation
As a result of this, Simon McGivern (CEO) and James Phillips (Sales director) will resign from the Board with immediate effect.
Howard Partington, who is the Managing Director of Concept Merchandise, will be appointed as Interim CEO with immediate effect. The Board has commenced a search for a new Group CEO.
He will be joined on the Board by Guy Pettigrew and Leigh Webb, the Company's current CFO and COO respectively.
Further Details of New Strategy
As recently reported, 2014 was a year of strong growth and the Company has now established a solid platform for future profitability.
The business model pursued by the Company up to this time - of building the Company through acquisitions in order to offer a broader portfolio of products in larger volumes to bigger and better quality retailers - has worked. Again, as recently reported, the number of relationships with retailers has grown as the Group increased in size. Furthermore, and as importantly, the stature and scale of these customers has improved. As a result, increasingly exciting and favourable sales opportunities and partnerships have arisen for the Company.
The Company now operates five divisions - Bluw, Meld, Go Entertainment, Concept Merchandise and Powerstation Studios. The Board, including the new executive team, believes that with focus, the Company can drive further integration and cross selling opportunities, whilst reducing overheads, and further building the existing platform whereby external license holders (Disney, Mattel and others) continue to see LiteBulb as a partner of choice to help capitalize on their own brands.
Trading Update
As recently reported, current trading is good and revenue for the five months ended 31 May 2015 was £7.0m. There has been a strong response from retailers to new 2015 product ranges.
In conjunction with the change in strategy the Board has reviewed its forecasts for the year and the pipeline of orders that support those forecasts. The Board has decided to take a more conservative view on the timing and size of some of these and also to delay starting some projects whilst it focuses on cost reduction. The Board is also aware that there are still significant cost savings to achieve in the Group which were originally anticipated to occur earlier. As a result of this the Board now expects the Group to produce revenue growth of approximately 55 per cent on last year which is lower than current market expectations. The company remains on track to deliver its first positive EBITDA this year compared to an EBITDA loss (before exceptional items) of £0.4m in the year ended 31 December 2014.
Summary
The Board would like to thank Simon and James for all of their hard work and endeavour in building the Company from a one product business into the group that operates today.
The Board believes that there is an excellent opportunity to build on the underlying scale of the Company and that the new strategy will benefit all shareholders in 2015 and beyond.
The Board looks forward to updating the market in due course.
Commenting, Simon McGivern said:
"I am delighted to be handing over the reins to Howard. There is never a good time to do this but I feel that James Phillips and I have taken the business as far as we can and that now is the right time for someone new to take this on. The business has more than doubled in size every year for the last several years and it now needs the rigorous application of more operationally experienced management to yield the underlying profitability that undoubtedly exists within the business. I wish Howard and the other senior managers the very best for the future and both James and I will be available as required to assist."
and new CEO, Howard Partington said:
"I am very pleased to be taking on the leadership of the Litebulb Group at this exciting time. We have five good quality businesses from which I believe we can drive further organic growth and economies of scale and I look forward to reporting on progress in the interim statement in due course. On behalf of shareholders, I would like to thank Simon and James for their efforts in getting to this point and wish them well in the future."
For further information, please contact:
LiteBulb Group Limited | www.litebulbgroup.com |
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Howard Partington, Interim Chief Executive Officer Guy Pettigrew, Group Finance Director | Tel: 020 3384 7100 |
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finnCap (NOMAD & Broker) | Tel: 020 7220 0500 |
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Stuart Andrews/Scott Mathieson (Corporate Finance) |
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Joanna Weaving (Corporate Broking) |
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Walbrook PR Limited | Tel: 020 7933 8780 or litebulbgroup@walbrookpr.com |
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Paul McManus / Sam Allen | Mob: 07980 541 893 / Mob: 7884 664 686 |
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The following information in relation to Mr. Partington is disclosed in accordance with Schedule 2(g) of the AIM Rules for Companies.
Full name: Howard John Partington
Age: 56
Shares held: 258,264
Directorships/partnerships held in the last five years:
Current Concept Merchandise Limited | Past HJP Management Consultancy (UK) Limited |
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Mr. Partington was a director of Oxford UK Limited which was subject to a Creditors Voluntary Arrangement and dissolved on 29 August 2005.
Mr. Partington was also a director of the following companies when they ceased to trade:
Company | Year of Dissolution |
Funky Eclectica Limited | 2004 |
Partington Holdings Limited | 2005 |
HJP Management Consultancy (UK) Limited | 2011 |
The following information in relation to Mr. Pettigrew is disclosed in accordance with Schedule 2(g) of the AIM Rules for Companies.
Full name: Guy Simon Charles Pettigrew
Age: 44
Shares held: 0
Directorships/partnerships held in the last five years:
Current | Past |
Litebulb Corporate Limited | 2K Manufacturing Limited |
Bluwstuff Limited |
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Bluw Limited |
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Ginger Fox Design Limited |
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Ginger Fox Limited |
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Meld Marketing Strategies Limited |
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Meld Properties Limited |
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Meld Publishing Limited |
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Meld Limited |
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Meld Group Limited |
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Scarlett Willow Limited |
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Litebulb Studios Limited |
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Go Entertainment Group Limited |
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Go Entertain Limited |
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Go Distribute Limited |
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Canny Media Group Limited |
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Canny Minds Limited |
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Go Promotions Limited |
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Go Entertainment (International) Limited |
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Mr. Pettigrew was finance director of 2K Manufacturing Limited when it went into administration in 2013.
The following information in relation to Mr. Webb is disclosed in accordance with Schedule 2(g) of the AIM Rules for Companies.
Full name: Leigh James Webb
Age: 39
Shares held: 604,428
Directorships/partnerships held in the last five years:
Current | Past |
Litebulb Corporate Limited | Go Entertainment (International) Limited |
Litebulb Studios Limited | Canny Media Group Limited |
Scarlett Willow Limited | Go Promotions Limited |
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Mr. Webb was a director of StatsonSport Limited when it went into administration in April 2008. Creditors were paid 100p in the pound.
There are no other matters which are required to be announced for either Mr. Partington, Mr. Pettigrew or Mr. Webb pursuant to Schedule 2(g) of the AIM Rules for Companies.
About LiteBulb Group
LiteBulb Group designs, manufactures and distributes innovative brands and products to the global retail market.
LiteBulb Products - our wide range of products are sold in over 30 countries through blue chip retailers including: ASDA, BHS, Tesco, Sainsbury's, WH Smith, Halfords, Marks & Spencer, Morrisons, QVC, Next, Fenwicks and Toys R Us.
LiteBulb Studios is a creative agency with global reach, delivering compelling and agile brand extension programmes to the entertainment industry. LiteBulb Studios has designed products and campaigns for clients around the world, including Disney, Mattel and Miramax.