Litebulb Group Limited Board Appointments, Re-Organisation and updates (2051S)

TIDMLBB

RNS Number : 2051S

Litebulb Group Limited

06 July 2015

LITEBULB GROUP LIMITED

("LiteBulb" or the "Company")

Board Appointments and Re-Organisation

Corporate and Trading Update

Introduction

LiteBulb (AIM: LBB), the branded product developer, announces that having made a number of substantial acquisitions in recent years, the Board, with input from divisional managing directors, has recently conducted a review of its business operations and determined a change in strategy. The strategy will now consist of two elements: to accelerate the integration of the operating divisions and to focus on driving organic growth. There is no intention of making further acquisitions in the short-term.

Board Appointments and Re-Organisation

As a result of this, Simon McGivern (CEO) and James Phillips (Sales director) will resign from the Board with immediate effect.

Howard Partington, who is the Managing Director of Concept Merchandise, will be appointed as Interim CEO with immediate effect. The Board has commenced a search for a new Group CEO.

He will be joined on the Board by Guy Pettigrew and Leigh Webb, the Company's current CFO and COO respectively.

Further Details of New Strategy

As recently reported, 2014 was a year of strong growth and the Company has now established a solid platform for future profitability.

The business model pursued by the Company up to this time - of building the Company through acquisitions in order to offer a broader portfolio of products in larger volumes to bigger and better quality retailers - has worked. Again, as recently reported, the number of relationships with retailers has grown as the Group increased in size. Furthermore, and as importantly, the stature and scale of these customers has improved. As a result, increasingly exciting and favourable sales opportunities and partnerships have arisen for the Company.

The Company now operates five divisions - Bluw, Meld, Go Entertainment, Concept Merchandise and Powerstation Studios. The Board, including the new executive team, believes that with focus, the Company can drive further integration and cross selling opportunities, whilst reducing overheads, and further building the existing platform whereby external license holders (Disney, Mattel and others) continue to see LiteBulb as a partner of choice to help capitalize on their own brands.

Trading Update

As recently reported, current trading is good and revenue for the five months ended 31 May 2015 was GBP7.0m. There has been a strong response from retailers to new 2015 product ranges.

In conjunction with the change in strategy the Board has reviewed its forecasts for the year and the pipeline of orders that support those forecasts. The Board has decided to take a more conservative view on the timing and size of some of these and also to delay starting some projects whilst it focuses on cost reduction. The Board is also aware that there are still significant cost savings to achieve in the Group which were originally anticipated to occur earlier. As a result of this the Board now expects the Group to produce revenue growth of approximately 55 per cent on last year which is lower than current market expectations. The company remains on track to deliver its first positive EBITDA this year compared to an EBITDA loss (before exceptional items) of GBP0.4m in the year ended 31 December 2014.

Summary

The Board would like to thank Simon and James for all of their hard work and endeavour in building the Company from a one product business into the group that operates today.

The Board believes that there is an excellent opportunity to build on the underlying scale of the Company and that the new strategy will benefit all shareholders in 2015 and beyond.

The Board looks forward to updating the market in due course.

Commenting, Simon McGivern said:

"I am delighted to be handing over the reins to Howard. There is never a good time to do this but I feel that James Phillips and I have taken the business as far as we can and that now is the right time for someone new to take this on. The business has more than doubled in size every year for the last several years and it now needs the rigorous application of more operationally experienced management to yield the underlying profitability that undoubtedly exists within the business. I wish Howard and the other senior managers the very best for the future and both James and I will be available as required to assist."

and new CEO, Howard Partington said:

"I am very pleased to be taking on the leadership of the Litebulb Group at this exciting time. We have five good quality businesses from which I believe we can drive further organic growth and economies of scale and I look forward to reporting on progress in the interim statement in due course. On behalf of shareholders, I would like to thank Simon and James for their efforts in getting to this point and wish them well in the future."

For further information, please contact:

 
LiteBulb Group Limited                                                       www.litebulbgroup.com 
Howard Partington, Interim Chief                                                Tel: [phone] 
 Executive Officer 
 Guy Pettigrew, Group Finance Director 
 
finnCap (NOMAD & Broker)                                                        Tel: [phone] 
Stuart Andrews/Scott Mathieson (Corporate 
 Finance) 
Joanna Weaving (Corporate Broking) 
 
Walbrook PR Limited                             Tel: [phone] or [e-mail] 
Paul McManus / Sam Allen                                        Mob: [phone] / Mob: [phone] 
                                                                                               686 
 
 
 

The following information in relation to Mr. Partington is disclosed in accordance with Schedule 2(g) of the AIM Rules for Companies.

   Full name:          Howard John Partington 
   Age:                       56 
   Shares held:       258,264 

Directorships/partnerships held in the last five years:

 
 Current                        Past 
  Concept Merchandise Limited    HJP Management Consultancy 
                                 (UK) Limited 
 
 

Mr. Partington was a director of Oxford UK Limited which was subject to a Creditors Voluntary Arrangement and dissolved on 29 August 2005.

Mr. Partington was also a director of the following companies when they ceased to trade:

 
 Company                                   Year of Dissolution 
 Funky Eclectica Limited                                  2004 
 Partington Holdings Limited                              2005 
 HJP Management Consultancy (UK) Limited                  2011 
 

The following information in relation to Mr. Pettigrew is disclosed in accordance with Schedule 2(g) of the AIM Rules for Companies.

   Full name:          Guy Simon Charles Pettigrew 
   Age:                       44 
   Shares held:       0 

Directorships/partnerships held in the last five years:

 
 Current                            Past 
 Litebulb Corporate Limited         2K Manufacturing Limited 
 Bluwstuff Limited 
 Bluw Limited 
 Ginger Fox Design Limited 
 Ginger Fox Limited 
 Meld Marketing Strategies 
  Limited 
 Meld Properties Limited 
 Meld Publishing Limited 
 Meld Limited 
 Meld Group Limited 
 Scarlett Willow Limited 
 Litebulb Studios Limited 
 Go Entertainment Group Limited 
 Go Entertain Limited 
 Go Distribute Limited 
 Canny Media Group Limited 
 Canny Minds Limited 
 Go Promotions Limited 
 Go Entertainment (International) 
  Limited 
 

Mr. Pettigrew was finance director of 2K Manufacturing Limited when it went into administration in 2013.

The following information in relation to Mr. Webb is disclosed in accordance with Schedule 2(g) of the AIM Rules for Companies.

   Full name:          Leigh James Webb 
   Age:                       39 
   Shares held:       604,428 

Directorships/partnerships held in the last five years:

 
 Current                      Past 
 Litebulb Corporate Limited   Go Entertainment (International) 
                               Limited 
 Litebulb Studios Limited     Canny Media Group Limited 
 Scarlett Willow Limited      Go Promotions Limited 
 
 

Mr. Webb was a director of StatsonSport Limited when it went into administration in April 2008. Creditors were paid 100p in the pound.

There are no other matters which are required to be announced for either Mr. Partington, Mr. Pettigrew or Mr. Webb pursuant to Schedule 2(g) of the AIM Rules for Companies.

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: ASDA, BHS, Tesco, Sainsbury's, WH Smith, Halfords, Marks & Spencer, Morrisons, QVC, Next, Fenwicks and Toys R Us.

LiteBulb Studios is a creative agency with global reach, delivering compelling and agile brand extension programmes to the entertainment industry. LiteBulb Studios has designed products and campaigns for clients around the world, including Disney, Mattel and Miramax.

This information is provided by RNS

The company news service from the London Stock Exchange

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