REG - Live Company Group - Corporate Update

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27/11/2023 07:00

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RNS Number : 6478U  Live Company Group PLC  27 November 2023

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                        Tel: 020 7225 2000

 David Ciclitira, Executive Chairman

 Sarah Dees, Chief Operating Officer

 Beaumont Cornish Limited (Nominated Adviser)  Tel: 020 7628 3396

 Roland Cornish/Rosalind Hill Abrahams
 CMC Markets UK Plc                            Tel: 020 3003 8255

 Thomas Smith

 Douglas Crippen

 

 

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.

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