Billy Elliott - a cash cow for this undervalued star

Having seen todays news of results materially above expectations I expect thsi to rise to 100p on the back of continued success

thread in development


LONDON (AFX) - IP Live attracted early interest, adding 4-1/2 pence to
64-1/2 on the back of a bullish update.
Occupancy levels at "Billy Elliot the Musical" have been ahead of
expectations, resulting in a higher level of income from this show.
Consequently, the group's results for the year to March 2006 will significantly
exceed market expectations, the company said.

Fronted by ex-financial hack Jemma George, IP Live takes interests in intellectual property and then, through its contacts, leverages those rights into exhibitions, stage and arena shows. The group is best known for its interest in smash West-End musical Billy Elliot, boasting music by Elton John. Such productions should generate strong cashflow and earnings, with revenues tumbling in from box office, merchandising and third party licensing deals.

In a major coup, IP Live recently negotiated an exclusive licence to produce and manage ‘all aspects’ of Movin’ Out, a hit dance show performed to Billy Joel’s music, in the UK and Europe. Grossing $100m plus on Broadway, it debuts in London in March, and will run for a limited period before going on a European tour. ‘This is such a key deal for us,’ says chief executive George, ‘and a very different one because we are the producers.’

Although slightly cagey on the subject, George says the project pipeline continues to bubble over, including three ‘stage- or arena-type ones’, and ‘some quirkier events’ that could be taken to the regions. She also hints at inroads into rock and pop tours.

Interim figures to September, issued last year, encouraged, with losses of £83,800 converted to profits of £82,200, and included first income from Billy as well as the sale of an interest in the gruesome ‘Wonders of the Human Body’ exhibition. Since half-end, IP Live has snared worldwide rights to co-manage and co-produce a stage production of Sleeping Beauty, and raised £2.1m at 70p to fund project development.

Floated at 40p in 2004, IP Live boasts some impressive institutional holders – Schroders and Framlington included – and further additions to its IP portfolio could even attract a predator.