9 Dec 2015 11:46
LITEBULB GROUP LIMITED
("LiteBulb" or the "Company")
Trading Update
LiteBulb (AIM: LBB), the branded product developer, provides the following update with respect to current trading.
Two divisions are experiencing a difficult fourth quarter, which is expected to result in a shortfall in group revenues of approximately £3.3m compared to the Board's expectations in September. The rest of the Group's divisions are trading in line with expectations, with Bluw, Meld, Concept and Powerstation Studios all on course to deliver profitable results for the year. The shortfall in revenues will result in a shortfall in EBITDA against expectations although the Board still expects to report a positive adjusted EBITDA figure for the year which represents an improvement on the prior year.
The two divisions experiencing difficulty are Go Entertainment and the US operation.
Go Entertainment is the Group's home entertainment division, which is suffering a significant decline in its core markets, by as much as 40% in certain DVD categories, leading to the shortfall on its Q4 revenues.
As announced on 27 January 2015, the Group opened its first US office at the beginning of the year in an effort to open up the perceived growth potential of the US market. However this approach has not delivered the anticipated results, leading to a material shortfall on projected revenues. It has therefore been decided to close this operation as the Group focuses on strengthening its considerable ties with the major UK retailers.
Howard Partington, Interim Chief Executive of LiteBulb, said: "Whilst it is disappointing that two divisions have not performed as expected we are still expecting to report a positive adjusted EBITDA figure for the year. I am of course pleased with the performance to date of our other four businesses and look forward to presenting the full year result in due course."
For further information, please contact:
LiteBulb Group Limited | www.litebulbgroup.com |
Howard Partington, Interim Chief Executive | Tel: 020 3384 7100 |
Guy Pettigrew, Group Finance Director |
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finnCap (NOMAD & Broker) | Tel: 020 7220 0500 |
Stuart Andrews/Scott Mathieson (Corporate Finance) |
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Joanna Scott (Corporate Broking) |
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Walbrook PR Limited | Tel: 020 7933 8780 or litebulb@walbrookpr.com |
Paul McManus | Mob: 07980 541 893 |
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: Tesco, M&S, John Lewis Partnership, Sainsbury's, Debenhams, Wilkinson's, Next, Boots, WH Smiths, Amazon, Target and Costco.
LiteBulb Creative is a creative agency with global reach, delivering compelling and agile brand extension programmes to the entertainment industry. LiteBulb Creative has designed products and campaigns for clients around the world, including Disney, Hasbro and Miramax.