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LBB Litebulb Grp

1.125
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Litebulb Grp LSE:LBB London Ordinary Share GB00BXVMLV36 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 1.125 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Litebulb Group Limited Half Yearly Report (6229A)

30/09/2015 7:01am

UK Regulatory


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TIDMLBB

RNS Number : 6229A

Litebulb Group Limited

30 September 2015

30 September 2015

LiteBulb Group Limited

("LiteBulb" or the "Company" or the "Group")

Half Yearly Report

LiteBulb (AIM: LBB), the branded product developer, announces unaudited results for the six months ended 30 June 2015 in line with management expectations.

Financial highlights

-- Revenue up 98% to GBP7.9m (H1 2014: GBP4.0m), with a confirmed order pipeline for delivery in H2 of over GBP19.4m, equating to committed revenues of 80% of anticipated full year sales target for 2015

   --     Gross profit up 75% to GBP2.7m (H1 2014: GBP1.5m) 

-- Gross margin in line with expectation but lower than 2014 at 34%, due to the effect of the acquisition of Concept Merchandise

   --     Adjusted loss before tax* of GBP2.1m (H1 2014: GBP2.2m) 

*before finance costs, taxation, depreciation, amortisation and exceptional administrative expenses

Operational highlights

   --     Defined focus on organic growth and completion of integration of acquisitions 
   --     Significant sales growth with Tesco and Underground Toys during the period 

-- Secured group wide banking services and GBP7.5m working capital lines from HSBC Bank plc, consolidating the individual financing arrangements of each acquired subsidiary

Howard Partington, Interim Chief Executive of LiteBulb, commented:

"As set out in our announcement in July the Company has established a solid platform and excellent relationships with a number of retailers. The Group's focus is now on organic growth and economies of scale and I look forward to reporting a satisfactory outcome to the year."

For further information, please contact:

 
 LiteBulb Group Limited              www.litebulbgroup.com 
 Howard Partington, Interim             Tel: 020 3384 7100 
  Chief Executive 
  Guy Pettigrew, Group Finance 
  Director 
 
 finnCap (NOMAD & Broker)               Tel: 020 7220 0500 
 Stuart Andrews/Scott Mathieson 
  (Corporate Finance) 
 Joanna Scott (nee Weaving) 
  (Corporate Broking) 
 
 Walbrook PR Limited                 Tel: 020 7933 8780 or 
                                   litebulb@walbrookpr.com 
 Paul McManus                           Mob: 07980 541 893 
 

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: Tesco, M&S, John Lewis Partnership, Sainsbury's, Debenhams, Wilkinson's, Next, Boots, WH Smiths, Amazon, Target and Costco.

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

Chairman's Statement

I am pleased to write to you with my report as Chairman of your company for the six month period to 30 June 2015.

Introduction

There has been much change in 2015, as well as much to be pleased about.

The Group has now achieved significant scale in terms of customer reach and product category offering and therefore, as previously announced, the Board has agreed on a strategy of focussing on developing these strengths organically, utilising the extensive retail experience of the existing operational management team.

There are significant challenges ahead, but the Group is well placed to meet them.

Financial Results

Revenues from continuing operations for the six months increased by 98% to GBP7.9m (H1 2014: GBP4.0m), with an increase in gross profit of 75% to GBP2.7m (H1 2014: GBP1.5m).

The revenue by division is shown in the table below:

 
  Reported                                                            LiteBulb                    6m to 
   (GBP)            Bluw         Meld    Go Entertain      Concept     Studios       Other      30/6/15 
===========  ===========  ===========  ==============  ===========  ==========  ==========  =========== 
  2015         2,231,849      900,137       1,918,384    2,200,976     607,255       3,797    7,862,398 
-----------  -----------  -----------  --------------  -----------  ----------  ----------  ----------- 
  2014           898,253    1,021,484       1,474,109            -     526,217      58,108    3,978,171 
-----------  -----------  -----------  --------------  -----------  ----------  ----------  ----------- 
  Variance     1,333,596    (121,347)         444,275    2,200,976      81,038    (54,311)    3,884,227 
-----------  -----------  -----------  --------------  -----------  ----------  ----------  ----------- 
  Variance 
   (%)              148%         -12%             30%          n/a         15%        -93%          98% 
-----------  -----------  -----------  --------------  -----------  ----------  ----------  ----------- 
 

We are pleased with the excellent H1 performance of Bluw, which has been derived from the strong demand of its Star Wars range, but also note that the shortfall of Meld is mainly due to the later timing of sales of Mary Berry product against 2014.

Gross margin has reduced to 34% (H1 2014: 39%), due to the lower margin business that Concept brings to the overall group offering and, as such, is however in line with management expectation.

The loss before finance costs, taxation, depreciation, amortisation and exceptionals, and excluding discontinued operations, remained in line with 2014 at GBP2.1m (H1 2014: GBP2.2m). Although Concept is not as Q4 weighted as the rest of the product businesses within the Group, the overall seasonal profile of the Group remains in line with 2014 with H1 being a loss making period. On a like-for-like basis, the EBITDA performance is broadly the same as 2014, and we anticipate that the efficiency savings from our recent strategic review will deliver an improvement as the Group becomes fully integrated.

Net Cash at Bank at 30 June 2015 was GBP0.4m, (30 June 2014: GBP0.9m, 31 December 2014: GBP4.2m), with the decrease since year end resulting from the funding of losses for the period and the increase in stock to GBP4.2m in advance of the key trading period.

The Group uses invoice finance and import loan facilities to manage its working capital, which are secured against the receivable balances of each subsidiary. We are pleased that HSBC Bank plc has provided a very attractive offer to extend its services and facilities of GBP7.5m around the Group, and we are now in the process of expanding this relationship. We believe this puts the Group in a firm position in respect of the funding of its trading cycle.

The longer term debt of GBP6.3m remains in line with 31 December 2014. This debt comprises three rounds of secured convertible bonds, with the first round of GBP0.8m due for repayment in February 2016, the second of GBP2.0m in April 2017 and the final round of GBP3.5m in December 2017. All bonds carry a 10% per annum interest coupon with a 10% per annum redemption premium in the event that the loans are not converted.

Current trading

Post period end trading remains in line with expectations.

At 28 September 2015, the Group's contracted revenues were GBP27.3m, equating to 80% of the 2015 target of GBP34m. Revenues are largely derived from the UK (at 72% for H1 2015), with our customer base representing the most well-known brands on the high street, such as Tesco, M&S, Sainsbury's, JLP, Debenhams, Boots, Next and WH Smiths.

Review of operations

As announced on 6 July 2015, we have been conducting a full review of the Group to determine how best to improve performance and results. We are pursuing four key objectives: 1) to put the Group on a solid platform to deliver the anticipated growth potential; 2) to eliminate any unnecessary duplication; 3) to adopt best practices across all companies within the group; and 4) to deliver a strong top and bottom line performance in 2016 and beyond. In the short term, we are completely focused on integrating the existing businesses to achieve efficiency savings and delivering organic growth.

So far we have identified a number of areas which should deliver material savings to the Group overhead. The areas being addressed are: group-wide headcount, which we plan to reduce by 15% with annualised savings of GBP500k; consolidating our two London offices into our head office in Battersea by utilising the existing space more efficiently, delivering savings of GBP65k per annum; elimination of peripheral, start-up divisions; implementing our proven Group best practice product development process, to streamline operations and mitigate historic overspends; focus on fewer, but more valuable licenses and product ranges; and reviewing all service providers to determine the appropriate value of the service we are receiving.

Furthermore we believe we can deliver significant revenue growth by focusing on using our existing customer relationships more widely around the Group, developing bespoke branded product with our tier 1 retailers, growing our online offering and working in a more integrated manner when acquiring licences.

Finally Howard Partington remains committed to his role as interim CEO, which the Board believes is best for the Group at the present time, although the Board continues to consider future candidates for this role in conjunction with the review referred to above.

Outlook

The actions being taken by the new management team should put the Group in a good position to deliver substantial organic growth and allow us to consider further acquisitions in the medium term that both meet our selection criteria and will enhance profitability following integration.

On a final note, I'd like to thank Simon McGivern and James Phillips for their contribution to building your Group and handing the reins over to the new management team to take Litebulb into the next chapter of its evolution. I wish Simon and James the best for the future with their new opportunities.

Michael Hough

Chairman

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2015 02:01 ET (06:01 GMT)

30 September 2015

CONSOLIDATED INCOME STATEMENT

 
                                           6 months      6 months 
                                                 to            to         12 months 
                                            30 June       30 June    to 31 December 
                                               2015          2014              2014 
                                Notes   (unaudited)   (unaudited)         (audited) 
                                                GBP           GBP               GBP 
 Revenue                          3       7,862,398     3,978,171        21,868,906 
 Cost of sales                          (5,156,716)   (2,433,308)      (13,958,516) 
 Gross profit                             2,705,682     1,544,863         7,910,390 
 Administrative expenses                (5,058,740)   (3,875,456)       (8,789,001) 
 Exceptional administrative 
  expense                                         -     (248,431)         (627,604) 
 Operating loss                         (2,353,058)   (2,579,024)       (1,506,215) 
 Finance costs                            (527,373)     (101,627)         (445,650) 
 Loss before tax                        (2,880,431)   (2,680,651)       (1,951,865) 
 Taxation                                         -             -          (25,128) 
 Loss for the period 
  from continuing operations            (2,880,431)   (2,680,651)       (1,976,993) 
 Other comprehensive 
  income 
 Exchange differences 
  on translation of 
  foreign operations                       (15,987)        26,693             8,526 
 Total comprehensive 
  income                                (2,896,418)   (2,653,958)       (1,968,467) 
                                       ------------  ------------  ---------------- 
 
 Loss per share 
 Basic and diluted 
  loss per ordinary 
  share                           4         (0.057)       (0.056)           (0.040) 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 
                                       30 June        30 June    31 December 
                                          2015           2014           2014 
                                   (unaudited)    (unaudited)      (audited) 
                                           GBP            GBP            GBP 
 Non-current assets 
 Intangible assets                  10,643,485      6,194,747     10,827,209 
 Property, plant and equipment         779,584        409,496        731,478 
 Deferred tax assets                   163,617        163,617        183,769 
 Current assets 
 Inventories                         4,234,442      2,736,760      3,686,295 
 Trade and other receivables         5,763,194      4,105,796     11,418,736 
 Cash and cash equivalents             398,064      1,256,867      4,155,038 
                                    10,395,700      8,099,423     19,260,069 
                                 -------------  -------------  ------------- 
 Total assets                       21,982,386     14,867,283     31,002,525 
                                 =============  =============  ============= 
 
 Equity and liabilities 
 Capital and reserves attributable 
  to equity shareholders 
 Issued share capital               31,548,276     28,453,815     31,506,219 
 Share based payment reserve           102,148        102,148        102,148 
 Reverse acquisition reserve      (13,221,177)   (13,221,177)   (13,221,177) 
 Convertible loan notes 
  issued                             1,001,948        284,470      1,001,948 
 Retained earnings                (10,903,952)    (8,693,025)    (8,007,534) 
 Total equity                        8,527,243      6,926,231     11,381,604 
                                 -------------  -------------  ------------- 
 Non-current liabilities 
 Trade and other payables                    -              -          4,324 
 Interest bearing borrowings         5,298,052      2,515,530      5,298,052 
 Total equity                        5,298,052      2,515,530      5,302,376 
                                 -------------  -------------  ------------- 
 Current liabilities 
 Trade and other payables            7,852,460      4,299,521     14,011,777 
 Interest bearing borrowings           304,631      1,126,001        306,768 
                                     8,157,091      5,425,522     14,318,545 
                                 -------------  -------------  ------------- 
 Total equity and liabilities       21,982,386     14,867,283     31,002,525 
                                 =============  =============  ============= 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
                                                   Share 
                                      Reverse      based 
                         Share    acquisition    payment      Equity       Retained         Total 
                       capital        reserve    reserve     reserve       earnings        equity 
                           GBP            GBP        GBP         GBP            GBP           GBP 
 Group 
 At 31 December 
  2013              26,135,051   (13,221,177)    102,148     111,861    (6,039,067)     7,088,816 
 Equity element 
  of convertible 
  loan notes                 -              -          -     890,087              -       890,087 
 Shares issued 
  in period 
   Cash                 57,297              -          -           -              -        57,297 
   Settlement 
    of creditors       112,640              -          -           -              -       112,640 
   Acquisitions      2,070,088              -          -           -              -     2,070,088 
   Conversion 
    of loan note       350,000              -          -           -              -       350,000 
 Shares to be 
  issued: 
   Acquisitions      2,781,143              -          -           -              -     2,781,143 
 Comprehensive 
  income: 
   Loss for the 
    period                   -              -          -           -    (1,968,467)   (1,968,467) 
 At 31 December 
  2014              31,506,219   (13,221,177)    102,148   1,001,948    (8,007,534)    11,381,604 
 Shares issued 
  in period 
   Settlement 
    of creditors        42,057              -          -           -              -        42,057 
 Comprehensive 
  income: 
   Loss for the 
    period                   -              -          -           -    (2,896,418)   (2,896,418) 
 At 30 June 
  2015              31,548,276   (13,221,177)    102,148   1,001,948   (10,903,952)     8,527,243 
                   ===========  =============  =========  ==========  =============  ============ 
 

CONSOLIDATED STATEMENT OF CASHFLOW

 
                                     6 months      6 months 
                                           to            to         12 months 
                                      30 June       30 June    to 31 December 
                                         2015          2014              2014 
                                  (unaudited)   (unaudited)         (audited) 
                                          GBP           GBP               GBP 
 Cash flows from operating 
  activities 
 Loss after tax                   (2,896,418)   (2,653,958)       (1,968,467) 
 Non-cash adjustments 
 Amortisation                          84,525        29,220           236,744 
 Depreciation                         126,632        92,722           192,254 
 Share payments                        42,057        91,380           112,640 
 Increase in working capital 
 (Increase)/decrease in 
  inventories                       (458,198)        48,344           502,106 
 Decrease/(increase) in 
  trade and other receivables       5,675,694     2,590,977       (1,008,475) 
 (Decrease)/increase in 
  trade and other payables        (6,163,839)   (2,567,856)         4,092,762 
 Net cash flows from operating 
  activities                      (3,589,547)   (2,369,171)         2,159,564 
                                 ------------  ------------  ---------------- 
 Cash flows from investing 
  activities 
 Purchase of fixed assets           (165,290)     (202,841)         (473,083) 
 Product development costs                  -      (35,694)         (547,021) 
 Purchase of subsidiaries 
  (net of cash and cash 
  equivalents)                              -   (2,292,155)       (6,082,893) 
 Net cash flows from investing 
  activities                        (165,290)   (2,530,690)       (7,102,997) 
                                 ------------  ------------  ---------------- 
 Cash flows from financing 
  activities 
 Repayment of bank loans              (2,137)     (328,607)         (341,157) 
 New loans                                  -     2,398,661         5,500,000 
 Conversion of loan notes                   -     (350,000)         (350,000) 
 Shares issued                              -     2,227,384         2,477,384 
 Net cash flows from financing 
  activities                          (2,137)     3,947,438         7,286,227 
                                 ------------  ------------  ---------------- 
 Net (decrease)/increase 
  in cash and cash equivalents    (3,756,974)     (952,423)         2,342,794 
 Opening cash and cash 
  equivalents                       4,155,038     1,812,244         1,812,244 
                                 ------------  ------------  ---------------- 
 Closing cash and cash 
  equivalents                         398,064       859,821         4,155,038 
                                 ============  ============  ================ 
 
 
 RECONCILIATION OF CASHFLOW TO NET CASH 
                           At 1 January                  At 30 June 
                                   2015      Cashflow          2015 
                                    GBP           GBP           GBP 
 Cash                         4,155,038   (3,756,974)       398,064 
 Overdraft                            -             -             - 
                                          (3,756,974) 
                                         ------------ 
 Debt due within 1 year       (306,768)         2,137     (304,631) 

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2015 02:01 ET (06:01 GMT)

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