Lo-Q Plc: Transitioning From Startup Origins To A Professional Operation

11th Aug '10 by Ben Hobson

3 comments 6454 reads

Lo-Q (LON:LOQ) is an AIM listed business which designs and operates “virtual queuing systems” for theme parks that allow members of the public to make reservations for rides and attractions. The Company raised some eyebrows in July by announcing that its Chairman, Jeff McManus, would be leaving the firm abruptly after some ten years. Stockopedia News recently attended an investor meeting where the Founder (and now interim CEO), Leonard Sim and the Finance Director discussed recent events and the prospects for the business.

An electrical engineer by background, Leonard conceived the idea in the 90’s in a queue with his family in a Florida theme park and set up the business in August 2000. FD John Alder, ex. PWC, was appointed to the Board late last year, having joined in 2008. By way of background, the underlying premise of Lo-Q is that park visitors join a virtual queue for a particular attraction or ride, instead of physically standing in-line. Unlike traditional paper-based queuing systems, visitors can be updated in real time when their queue slot is available. This system drives revenue for park operators since, instead of standing in line, the guests are free to spend money at a retail outlet or a restaurant. Once their ride is ready, Lo-Q’s systems alert the customer so they can make their way to the attraction. “True virtual queuing” means that all guests wait the same amount of time for their rides, so a Lo-Q system does not impact queue dynamics.

In total, the Company has contracts with 18 theme parks with 7 major operators ^[1] . This includes 11 Six Flags theme parks in North America, Dollywood in the US, theme parks in Australia and Italy, as well as Legoland Windsor in the UK. The Company has two main products:

The Q-Bot is a proprietary handheld unit which Lo-Q characterises as a “true virtual queuing system for theme parks”. Park visitors can rent small hand-held units and, when guests make a reservation using their Q-bot, the system registers that person or group into a virtual queue. Guests are informed via the Q-bot display with a beep and vibrate when their ride is ready. They can be advised should their ride break down, or even updated on special promotions and events…

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StrollingMolby

7th Oct '10

The profile of the new CEO will certainly be revealing. The wording of the announcement - “advanced discussions with its preferred candidate” - suggests that management have someone firmly in mind but they weren’t willing or able to provide further details at the session. It will certainly be interesting to see if they go for a professional manager from outside the industry or whether, given the emphasis placed in the meeting on industry relationships, they engage someone with previous experience of selling services into theme parks.

Shortly after this presentation by LO-Q (LON:LOQ) in London, the company announced the appointment of Tom Burnet as CEO, and he slid into the hotseat on Monday, as announced here and including his background:

Further to its announcement of 18 August 2010, Lo-Q plc, the AIM traded provider of virtual queuing systems for theme parks and major attractions announces that the appointment of Tom Burnet as Chief Executive Officer has taken effect today and that he has joined the Board.

Tom Burnet joins Lo-Q from Serco plc where he was Managing Director of Serco plc's Defence Operations division. Before Serco, Tom was Managing Director of QinetiQ's Capability Support Division, which provides technical consultation and support to Governments and Industry internationally.

The next month or two promises to be an exciting time for Lo-Q, with a trading update due by end-Oct/early-Nov to tie-in with the new 31-Oct year-end where we'll learn how the theme park season has gone for Lo-Q and an update on the water park trials at Aquopolis with the new product.

A look at the chart shows the SP having a breather over the summer with few news releases, but I note with the price bouncing off the 200 dma and the expected newflow, we will enjoy a nice rise into the end of the year. DYOR, etc, etc...

P.S. I gather that Tom Burnet will be attending the next Sea Salt investor dinner hosted by Carmensfella on 18 October (at which two property companies will be presenting).

From ADVFN:

I can confirm that our new CEO Mr Tom Burnet will be attending my next Mello dinner on Monday 18th October to meet with shareholders pre meal for 30 minutes over drinks and then do a ten minute talk introducing himself to all investors at the dinner. Two other companies will be presenting so not a LOQ presentation as such but very worthwhile if we are to meet up with our new man in the hot seat

19th Oct '10

Candover poised to pull plug on theme park sale

(LON:CDI), the private equity group, is on the brink of ditching plans to sell or float Parques Reunidos, the Spanish theme park operator, after offers from rival buy-out groups came in below its €2bn ($2.8bn) price tag.

Apollo Management and a consortium of Advent International and the Carlyle Group both submitted final bids for Parques on Friday. But the two offers were below Candover’s asking price for the operator of 69 theme parks in Europe and the US.

http://www.ft.com/cms/s/0/55a60cda-daed-11df-a5bb-00144feabdc0.html

Did anyone get along to the Beckenham dinner last night and speak with Tom Burnet - any first impressions / snippets gleaned?

Lo-Q plc: Transitioning from startup origins to a professional operation

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Ben Hobson

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Candover poised to pull plug on theme park sale

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