Last checked at 27 Nov 2023 07:00
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014. as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
27 November2023
LIVE COMPANY GROUP PLC
("LVCG", the "Company" or the "Group")
CORPORATE UPDATE
LVCG provides an update on corporate activities.
GENERAL
The Company has spent the previous quarter closely reviewing its financial position including all creditors which include a number of legacy creditors and a number of costs associated with the recently cancelled O2 KPOP event as referred to below. To preserve cash in the short-term, staff numbers have been cut and salaries reduced where appropriate. Creditors have been closely monitored and communicated with and payment plans have been put in place where possible. The strategy has resulted in some cost reduction and cash preservation but the Company needs to continue to pursue this going into the closing months of 2023 and into 2024, as overall creditors remain in the region of £3-4 million. The Company has ongoing dialogue with all creditors with regards to repayment plans and settlements.
The Board is actively reviewing several pathways to ensure the future success of the business including cutting of non-performing business and the addition of new verticals within the media and entertainment space.
BRICKLIVE
Back in 2022, Bricklive employed and retained over 23 staff which was the residue of the post Covid period. During 2021 - 2022 Bricklive had continued to build Tours. As part of the LVCG 2022 year-end accounts and LVCG 2023 interims the asset value retained by Bricklive remains at £6,118,000. At the end of September 2023, the number of Bricklive employees and retained staff has been reduced to 4.
Earlier in the quarter Bricklive has entered into an outsourcing agreement with Iconic Bricks, a new venture founded by Duncan Titmarsh a previous employee of LVCG and the original founder of Bright Bricks which was bought pre-pandemic by LVCG. Under this agreement Iconic Bricks has taken over all build responsibilities including the regular repairs of 13 tours and is currently repairing Brickosaurs before it goes out to USA early December. Iconic Bricks also has taken over the responsibility of the corporate builds and assisting in the complicated program of installations and derigs. Iconic Bricks also market the Tours to a defined number of venues in the UK. Discussions are underway to begin to build new Tours in 2024 onwards. The Company considers this is an elegant way of continuing to build out and grow the Brick Live business with a supportive partner on a reduced cost base.
Bricklive is now solely concentrating on sales and has become a very low overhead/high margin business, signing agreements for 2024 and 2025 and beginning discussions for 2026 and beyond. As a result of the changes, whilst there has been some decrease from the previous year it is expected based on the forecast that Bricklive can now show a significant turnaround in 2024.
Chairman David Ciclitira commented: "I am particularly delighted that Tina and Duncan have agreed to work together on Bricklive and I am very optimistic that this new structure will enable Bricklive to increase its future contribution to the Group. Duncan has a unique knowledge of the Brick world and I know from personal experience how important he will be to our total offering over the forthcoming years"
StART Art Global
The recent StART Art Fair at the Saatchi Gallery took place as usual and discussions are underway for the relaunch of StART Art Fair. An announcement is expected next month.
KPOP EVENTS
As previously announced in September 2023, the London concert was cancelled. In addition, the Company confirms that no further monies were received from the loan provider in relation to this concert beyond the initial loan of £600,000 and that previous monies lent are in the process of being repaid. In that regard, the Chairman Mr Ciclitira has provided financing of £150,000 to the Group to re-pay the above monies that were guaranteed by LVCG for the payment for the Artists for the London concert. In overall terms, not only did the Group not have the benefit of the very substantial revenues it had been anticipating from the show but also was left with various upfront and cancellation costs which have exacerbated the level of Group creditors as referred to above
Conversations with regards to the Frankfurt show remain ongoing with regards to a new date, the October 2023 date having been postponed.
LCSE - Live Company Sports and Entertainment
The Company has continued to hold live events such as wine and food fairs in the previous two quarters further details of which are provided in a separate non-regulatory event announcement released today.
BOARD CHANGES
The Company announces that it has accepted the resignation of Serenella Ciclitira last September from the Board. The Board thanks her for her contribution and hard work and especially her insight with regards to the various art events that took place over the years.
ANNUAL AND INTERIM ACCOUNTS
The Board is in the process of finalising the 2022 Annual Report and Accounts and 2023 Interims - and is aware of all regulatory timetables and is working towards ensuring the Company's shares may be trading again as soon as possible.
A separate RNS has been issued today with an update on all the Company's events that have taken place in the previous quarter as well as next year's contracts.
Enquiries:
Live Company Group Plc David Ciclitira, Executive Chairman Sarah Dees, Chief Operating Officer | Tel: 020 7225 2000 |
Beaumont Cornish Limited (Nominated Adviser) Roland Cornish/Rosalind Hill Abrahams | Tel: 020 7628 3396 |
CMC Markets UK Plc Thomas Smith Douglas Crippen | Tel: 020 3003 8255 |
About Live Company Group
Live Company Group Plc ("LVCG", the "Company" or the "Group") is a live events, entertainment and sports events company, that has been trading on AIM since 2017.
The Group is divided into four divisions:
· BRICKLIVE - consisting of a network of partner-driven fan-based and touring shows using BRICKLIVE created content worldwide. The Company owns the rights to BRICKLIVE - an interactive experience built around the creative ethos of the world's most popular construction toy bricks. The Group is an independent producer of BRICKLIVE and is not associated with the LEGO Group.
· LVCG owns the brand KPOP Lux and is the Executive Producer of KPOP Lux.
· StART Art Global (SAG) - SAG owns StART Art Fair in London which has been staged over the last 10 years at the Saatchi Gallery. SAG has licensed the rights to the StART brand in Korea. The licence includes the right to create and run StART Art Fair Seoul and various StART+ exhibitions.
· Live Company Sports and Entertainment (LCSE) - LCSE owns LCSE Pty in South Africa.
LVCG is a founder shareholder in E-Movement - the promoter of the Formula E Race in Cape Town. As part of this relationship E-Movement has retained LCSE (through E-Movement holdings) as its implementation partner. E-Movement Holdings a 100% subsidiary of Live Company Group has the right to sell sponsorship for the Formula E race in Cape Town.
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated Adviser and is authorised and regulated by the FCA. Beaumont Cornish's responsibilities as the Company's Nominated Adviser, including a responsibility to advise and guide the Company on its responsibilities under the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed solely to the London Stock Exchange. Beaumont Cornish is not acting for and will not be responsible to any other persons for providing protections afforded to customers of Beaumont Cornish nor for advising them in relation to the proposed arrangements described in this announcement or any matter referred to in it.