We are encouraged with the progress and growth the group has made so early in 2020, we have built a healthy pipeline of contracts for the coming months which are spread over a broad number of divisions, providing us with confidence in our portfolio approach
David Ciclitira, chairman
What Live Company does
These range from large BRICKLIVE events that attract hundreds, to smaller cafes that parents and children can enjoy while taking a break from shopping.
Since listing on AIM in December 2017, the Company has been pursuing an aggressive strategy of expansion and brand building that has paid off for the share price.
What it owns
Brick Live Group holds BRICKLIVE, an interactive event that allows people to learn, build and play with LEGO bricks.
Parallel Live is a joint venture with Three Six Zero to hold BRICKLIVE events in the US and Canada. The joint venture has agreed terms with Live Nation Entertainment to launch events this year. The first was held in Dallas in January.
Bright Bricks, acquired by Live Company last October, is a professional LEGO brick building firm. It makes custom LEGO brick and toy brick creations for clients across the globe including Rolls-Royce, Google, BT, Land Rover, Warner Brothers, LEGO, General Electric, The National Gallery, Maersk and Lufthansa.
How it is doing
In a trading update for the year since mid-January in early March, the firm said it has secured £3.2mln in contracted revenues for the year as well as £1.1mln for 2021.
An additional £185,000 in revenues for 2020 and £228,000 for 2021 are currently awaiting final signature.
Live Company also unveiled new contracts for BRICKLIVE shows at the Allwetter Zoo in Munster, Germany from March to July and the Bristol Zoo in the UK from July to September.
The firm said it currently has 29 BRICKLIVE events planned for 2020, against its target of 75 for the year, with more expected to be announced by its partners.
Live Company also has 18 themed tours in circulation with another three under construction.
- In mid-March, the firm inked an agreement with The Copyrights Group Limited to produce a BRICKLIVE tour themed around the Paddington Bear brand
- The company has signed an agreement with publisher Frederick Warne & Co to produce a BRICKLIVE tour themed around characters from the Peter Rabbit book series by Beatrix Potter.
- In January, the firm signed a licence agreement with Entertainment One to produce BRICKLIVE tours themed around characters from the Peppa Pig cartoon franchise
What the broker says
In a note in June, analysts at Shard Capital forecast that Live Company would deliver an underlying pre-tax profit of £200,000 in its current financial year, which would then rise to £1.7mln in 2020 and £3.6mln in 2021.
Analysts also said that the deal Nickelodeon was “transformational” for the Company and would allow it to benefit commercially from leasing assets built using Nickelodeon’s intellectual properties (IPs) while also potentially opening the door to more IP deals with other major content partners.
Shard added that the market fundamentals for the group’s BRICKLIVE shows were “strong” with leisure spending showing historic long-term growth in addition to higher levels of disposable income from emerging economies which was fuelling the wider travel and leisure sectors.
Shard’s valuation has given a one-year range for Live Company of between 73p and 89p per share, which suggested “limited downside risk” alongside strong potential to outperform as newsflow underpinned its longer-term growth prospects.
The company is planning to increase its presence in the southern hemisphere to maximise the use of assets during the European winter months.
Following the shows in Toulouse, France with GL Events, Ciclitira says that the company hopes to sign a longer partnership agreement to extend its presence in the country.
The entertainment group has also signed a three-year deal to tour in South Korea, first with its 'Mythical Beasts' exhibition running until August 2020, and raking in US$300,000 a year.
In September its subsidiary Brick Live International signed a deal with Snowman Enterprises to run a themed 'The Snowman and The Snowdog' tour across the UK and Ireland until January 2022.