Live Share Discussion Threads

[gingernut1] 25/11/2019 21:44

“Revenue of £4.8m for 2019 already secured from shows and builds, with a further £0.4m of fixed fee contracts for 2019 currently out for near term signature. This excludes the majority of revenues from the Group's flagship NEC show and other upcoming BRICKLIVE shows for 2019 where the Group receives a share of the profitsL Group has been trading EBITDA profitably since Q2 and in line with expectations”

That 79% revenue achieved is a bit inconvenient for the argument you are trying to make.

For a pair that are not invested you are working overtime. Neither are you here to “help” or to be altruistic. Time to close your short positions before it gets really expensive for you. The share price hitting the 200dma has given you another chance to close.

[gingernut1] 25/11/2019 21:36

Pity for you pair that by the end of Sep they had already secured 79% of the annual revenue too. Makes them well on track to deliver that 23% increase.

[gingernut1] 25/11/2019 21:35

In 2018 they increased revenue by 127%. In 2019 They are well on track to increase it again by at least 23%.

Turnover £6.555m a 23% increase
Gross Profit £4.235m with a 64.6% gross margin
EBITDA £1.108m
Operating Profit £0.538m

Those are the market expectations

[mister md] 25/11/2019 21:30

JakNife, gingernut the expert here claims 0.5m operating profit which I also find hard to believe... even so, it would not warrant a marketcap of 27m

[mister md] 25/11/2019 21:14

The Deferred Shares and the Fee Shares will rank pari passu with the existing Ordinary Shares and application will be made for the 1,893,940 Deferred Shares and the 452,916 Fee Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Deferred Shares and the Fee Shares will commence at 8.00 a.m. on 29 November 2019.

lovely, and no doubt more to come

[mister md] 25/11/2019 21:09

Yes only posting in the evening as busy day today, but I note you have been spamming the usual garbage ALL DAY in response to some good posts by Jaknife and others this morning who point out the real issues here. Cash is very low hence shares issued instead of cash. And at a price of 44p not the AGREED 65p. Then again at current price of 38p they are down on that already.....

[gingernut1] 25/11/2019 21:02

Mate you are a serial misleader on this board, waffling about fantasy placings, claiming the cash was going down, when it was going up, that the new NED didn’t pay for his shares and that the delay in settling the consideration was because they were not keen to receive in new shares (a claim made on 8 Nov). Yet the company were clear since Sep that this would be settled in shares. Those terms were settled on the anniversary of the consideration in October and DC confirmed today that the reason for delay was down to the Nickelodeon Global deal having to be announced first. So that’s just another confirmation by the company of the false information you have been sprouting. Time to get out of your bedroom a bit more. Try opening the window during the day you will find it’s daylight outside.

Taking today’s news, the total consideration paid for Brightbricks purchase was £8.76 million, slightly more than the £8.5 million that was originally intended. Given that at the last audit they had over £8.9m in stock, that was a pretty good price to aquire one of the worlds largest and best brick builders.

Mate I’m all for having a good discussion and looking at the bear as well as the bull case on lvcg, but you openly admit that you are not invested, and have been shown to post false information (and don’t think that putting a question mark after the false information somehow makes it ok). Your arguments are not even particularly good, mainly turning up when the share price goes down and saying that you have a grudge against the Chairman over 5 years ago. Time to get out of your bedroom a bit more. Try opening the window during the day you will find it’s daylight outside.

[mister md] 25/11/2019 20:53

The market is pricing LVCG at year low of 'only' 38p for a reason. Still a hefty 27m marketcap for negligible profits.

[gingernut1] 25/11/2019 20:35

Mate, you have been falsely claiming for over 6 months that a placing is coming yet the company seems to be doing just fine. Indeed they are running ever more events, making ever more revenue, and will move into profit this year. As to the fees being settled in shares, looks to me that the Directors and executives of the company want more shares and also want to keep even more cash in the business for expansion. They are on track to deliver £6.555m in revenue this year (a 23% increase) and also a £0.538m operating profit.

You also falsely claimed that The new NED Mark Fairborn didn’t pay for his substantial holding of shares in the company when its very clear that he bought a very substantial holding in the placing in Feb 19 to accelerate the zoo model build programme.

They have now signed for a global IP deal with the biggest children’s entertainment company in the world that broadcasts in over 160 countries and have secured that for 5 years and are about to enact that. There are clear indications that this will happen in Germany first and pretty soon. The USA is poised for expansion in a big way too.

IMO there just isn’t going to be a placing to issue shares to cover your short, so time to close that position before it gets too expensive for you mate. And also time to give up that 5 year grudge you have against DC, there are a great team running LVCG behind them. For example it was Andy Smith, Deputy Chairman of BRICKLIVE Group that said: "The initial feedback from our customers of the PAW Patrol BRICKLIVE Tour in Blackburn Town Centre this summer has been overwhelmingly positive, so to take that success and expand on a global platform, is transformational for the Group and the BRICKLIVE brand."Anyone who has met or spoken to Andy will know that he is a pretty straight talking guy and not prone to hyperbole, so if he is saying that this deal was transformational I wouldn’t bet against him.

[mister md] 25/11/2019 20:11

gingernut, on 8th Nov you stated "The terms of the settlement of the deferred consideration last year were clear. “5 Oct 2018 deferred consideration of £0.833m until 6 Oct 2019. Payable in cash or shares @65p"

Now that there was no chance of the shareprice reaching anywhere near the 60p+ mark again they went against this to the detriment of all current holders and are to issue them at 42p. Yes it means they conserve the little cash they have to keep the lights on but issuing more shares to pay directors fees shows in which direction this is headed. I would call it the 'Parallel Media' direction...

[darola] 25/11/2019 11:46

So why would the vendors - who are directors within the LVCG group, and who collectively own 8.5m shares - without the deferred consideration shares, damage the value of their current holdings by being so demanding? Cutting your nose off to spite your face comes to mind.

The company have reiterated they have been profitable since Q1. So those inside - the vendors - have struck a deal that leaves the cash in the business to continue its growth.

500k net profit this year is confirmed as on track. No reason to doubt that. So it was NEVER going be enough to cover an £850k payment, so why wipe out your free cash for a deferred payment, when all parties are still heavily invested in business growth.

In isolation it’s easy to give a negative spin. In context it’s good business management.

As I said earlier, I’m confident that this has a buyer lined up - for the reasons given, the vendors have too much skin in the game to risk dumping shares.

[gingernut1] 25/11/2019 11:43

You look every more desperate mate. There’s no “quite obviously” about it. You will have to face reality at some point and understand that you are just not going to get placing shares to cover your short.

Agree with that Darola, it seems an odd date to mention, so it would not surprise me to hear that they had an II lined up to take these. The free float here is so small that its difficult for an II to take a good chunk on the open market.

Agree with your thoughts on the future growth of the company too, with the global IP deal announced they will want to be funnelling all their resources back into the company to accelerate the growth.

[darola] 25/11/2019 11:29

I expect the shares to be taken out in one transaction. The early consideration date doesn’t need to be there, so a buyer (maybe an ii) looks to be already in place. Time will tell.

I agree that using cash in hand for fees, when you can use it to accelerate the NKD growth would be stupid. So that seems like a good move.

Expecting more good news in the coming weeks. DC already indicated new partnershipS and new IPS would be announced THIS YEAR.

Nothing to worry about here. VERY happy with where LVCG is going.

[gingernut1] 25/11/2019 11:06

Lol, again nice try, but the deferred consideration is not a placing and its been known about since last October. As to your “keep the lights on” fantasy placing good luck with that. Its no more likely now IMO than it was when you said it earlier in the year, and still no sign of it eh. I just hope you are not banking on there being one to replace the shares to cover your short.

[gingernut1] 25/11/2019 10:31

Nice try jacNife, but for clarification I was referring to the point at which the company said they were going to be settled in shares, which they did twice since September this year. Settling the fees in shares seems a good idea to me too as it means they have £200k in additional funds for other purposes. I suspect you were banking on there being more shares available in a placing and are a little bit disappointed this morning.

[gingernut1] 25/11/2019 09:35

The BB consideration was always going to be settled in shares. There have been at least 2 x RNS that have made that clear, and the price was settled back in October when it was due. The only reason for the delay in announcement is that they were clearly made to wait for the Nickelodeon global IP deal to be announced first. There were already going to be 1.3m new shares issued for the BB differed consideration and now a total of 2.3m shares will be issued (3.3%). Circa £200k in fees have been settled too so it looks to me that they have another purpose in mind for that cash no doubt to invest back into the business for the plans for the global deal announced on Friday. Anyone banking on there being a placing is going to be severely disappointed by today’s news

[carcosa] 25/11/2019 08:09

So finally, after quite a delay, LVCG admit they have no cash to pay the deferred consideration of GBP0.833m instead, they have to issue more shares. But not only that, they have to issue around 47% more shares than had they done so at the time of the acquisition.

Unfortunately for the vendors the share price has already moved against them so instead of receiving the full consideration in cash they get less than the value of the consideration in shares.

What is even worse is that the company cannot even afford the poultry sum of paying additional accrued fees, aka salary, to three individuals but have to settle these in shares too! To be fair though, its interesting they waited until the share price was very low before taking the decision to get paid in shares. That stinks to existing shareholders.

And to heap even more downside on the share price there has now been an overhang created in the share price because they vendors have to sell a boat load of shares by end January to settle their tax bills arising from the issuance of new shares. And who is to say they won't stop there?

So all this talk about revenue is inconsequential. If the business had any legs they would have done a placing to raise the cash plus working capital but that did not happen did it?

[gingernut1] 13/11/2019 15:40

#LVCG At wedge support dating back to July 2017. RSI near oversold @ 38 with MACD now beginning to contract.

Bounce is on from this level!

target 53p for starters, then 73p (above last placing @ 65p)

[gingernut1] 13/11/2019 14:05

Well jacNife, you will obviously think its lower given that you are so obviously have a short position on this share. If that’s what you think then why don’t you increase your short? Put your money where your mouth is. That’s the mouth of course that has knowingly misled people both about a placing coming for months and also about the forecast position for the year, not to mention the problem you have with maths on the rentals where you think that renting an entire touring set only attracts £70k a year 🤣
LVCG is in the best place its ever been over the last two years and is poised for massive further global expansion. They have the resources, the content and the partners to deliver that. Not only is the business growing massively, its clearly going to be a takeover target for a larger group.