Live Share Discussion Threads

[gingernut1] 28/11/2019 22:07

Looks like someone is banking on there being more equity being available to cover their short position. IMO there is not going to be more shares issued so it could get very expensive for someone.

[gingernut1] 26/11/2019 20:31

When they started out, they were able to put on a single bricklive events using a set on models that they rented from brightbricks. I’m sure people will recall their first placement that was done in order to buy a touring set and improve the economics of the group. Then of course we had them purchase Brightbricks and integrate them into the business, very significantly increasing the number of models and resources they had access to. Then came the start of the zoo touring idea, which is just over a year old from when they had the initial idea, which had them tapping in to a completely new and untapped revenue stream. There was another fundraise to accelerate that programme back in February, and accelerate they did. Now that programme is going global, expanding into the USA and Europe first. We even now have the very first multi year Zoo touring contract with Marwell Zoo. Add to this they have tapped into the Business Improvement Districts in the UK in a big way, with some of the BIDs now on their 7th rental. And they have just demonstrated their ability to put on 8 global events simultaneously. The global partner network has also been increasing, with the addition of South Africa recently. These are billion pound companies that they are partnering with, the best in their region for promoting events. Importantly as they have gone along, and understood the potential of the product, the business model is changing fro one of licence fee to one where they share the profits. What’s also important is that they have the content for their events, and with world class IP providers such as Nickelodeon and penguin ventures they have that in spades. I’m sure those will not be the limit of the IP programme.

Lvcg have been doing what start up businesses should be doing. Along the way they have raised money to expand the business, each time raising money for a very clear purpose. And having raised the cash on each occasion, it’s gone straight to the purpose intended, with tangible results seen on each occasion, and they have been delivering increased revenue year on year. They are now at the point where they are expanding organically, ploughing that money into expanding the business. All the Directors own very significant chunks of the business and they want to own as much as they can, because they can see exactly where this business is headed.

[mister md] 26/11/2019 20:28

Given your childishness I reckon you havent progressed beyond Duplo imho

[gingernut1] 26/11/2019 20:25

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. That’s what actual shareholders focus on.

Massive news of further Lego acquisitions today. Looks like the Lego group have done with their integration of legolands and are looking to control everything else. Buyout could easily come out of the blue, that would be really painful for your short position, indeed could end up being a world record in terms of money lost. I’d be worried if I was you mate.

[mister md] 26/11/2019 19:36

yes, I have loads in IGG at a decent profit. Oh and did I mention it pays a cracking 6% dividend yield too ?

[gingernut1] 26/11/2019 19:32

Answer the question mate, or is the question too difficult for you?

[mister md] 26/11/2019 19:31

touchy. perhaps you should have spread your investments. Still reccommend IGG, storming ahead now, unlike the dog that is LVCG, and still offers a 6% yield. You will learn over time what AIM is all about.

[gingernut1] 26/11/2019 19:24

What is it to you mate? In case anyone is confused if you are invested here or not, no need to guess as you have already told them

“Mister MD - 30 Sep 2019 - 07:08:48 - 320 of 518 As of 24 September, the Group had GBP140,000 of available cash. yikes. fundraise coming? glad I never invested in this since parallel media fiasco”

So why exactly are you commenting here mate? You seem a little obsessed.

[mister md] 26/11/2019 18:49

imagine being invested in the company and reading their RNS statement “5 Oct 2018 deferred consideration of £0.833m until 6 Oct 2019. Payable in cash or shares @65p" and then finding out they got them at 44p

If you talk about misleading, there is a good example. Next it will be the brokers note numbers I suppose... 0.5 m op profit? Lets see.

Shorters, market makers and DC with his mega salary are the only ones making money here

[gingernut1] 26/11/2019 16:59

You know what is stupid? Using a shareprophets article as a source 🤣🤣🤣🤣9315;🤣ԍ15;🤣🤣;🤣🤣🤣🤣
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[darola] 26/11/2019 16:15

A decent summary GD1. But it doesn’t fit some people’s agendas.

You can’t fix stupid, so we’ll have to leave him in his bitter and twisted little world.

[gingernut1] 26/11/2019 15:15

In the words of the wise:

In the short term the stock market is a voting machine (adding up which firms are popular and unpopular) but in the long run, the market is a weighing machine (assessing the actual substance of a company).

Your problem, aside from not being invested in anything that you comment on of course, is you are unable to recognise that there is real substance to lvcg. This is a company that has been growing revenue massively over the two short years its been going, and its still only just at the start of its growth journey.

2017 £1.928m
2018 £5.351m a 178% increase
2019 £6.555 m forecast (£5.2m hit as of 30 Sep) a 23% increase

This reflects the growing events being conducted

2017 18 events
2018 34 events
2019 target 60 events. Already achieved 72 events.

When they started out, they were able to put on a single bricklive events using a set on models that they rented from brightbricks. I’m sure people will recall their first placement that was done in order to buy a touring set and improve the economics of the group. Then of course we had them purchase Brightbricks and integrate them into the business, very significantly increasing the number of models and resources they had access to. Then came the start of the zoo touring idea, which is just over a year old from when they had the initial idea, which had them tapping in to a completely new and untapped revenue stream. There was another fundraise to accelerate that programme back in February, and accelerate they did. Now that programme is going global, expanding into the USA and Europe first. We even now have the very first multi year Zoo touring contract with Marwell Zoo. Add to this they have tapped into the Business Improvement Districts in the UK in a big way, with some of the BIDs now on their 7th rental. And they have just demonstrated their ability to put on 8 global events simultaneously. The global partner network has also been increasing, with the addition of South Africa recently. These are billion pound companies that they are partnering with, the best in their region for promoting events. Importantly as they have gone along, and understood the potential of the product, the business model is changing fro one of licence fee to one where they share the profits. What’s also important is that they have the content for their events, and with world class IP providers such as Nickelodeon and penguin ventures they have that in spades. I’m sure those will not be the limit of the IP programme.

Lvcg have been doing what start up businesses should be doing. Along the way they have raised money to expand the business, each time raising money for a very clear purpose. And having raised the cash on each occasion, it’s gone straight to the purpose intended, with tangible results seen on each occasion, and they have been delivering increased revenue year on year. They are now at the point where they are expanding organically, ploughing that money into expanding the business. All the Directors own very significant chunks of the business and they want to own as much as they can, because they can see exactly where this business is headed.

[gingernut1] 25/11/2019 23:15

The following table summarises and highlights the key details of our forecasts, along with the transitional year of FY18 as a base comparison (including the discontinued Parallel Live show in New York). With contract visibility lower over time, we have been more conservative with our FY21E revenue forecast, albeit with further improvement in gross, EBITDA, EBIT and PBT margins. Management tracks sales progress on a weekly basis against budgets, with a particular focus on contracts secured or out for signature, with the latter have virtually a 100% conversion rate. The FY18 report and accounts state that LVCG has already secured contracts with a value of £4.0m for 2019, equating to 61% of our FY19E revenue forecast. This is a reassuring indication for delivery of FY19 revenue at this stage of the year. In addition to this, contracts worth £1.3m have already been secured for 2020 and £0.7m for 2021. Our forecasts assume no tax is paid over our forecast horizon, given accumulated tax credits available to LVCG. The rising trend in profitability is reflected both in the EPS figure and the substantial growth i n net cash over the forecast period.
Our forecasts show a three-year turnover compound annual growth rate (CAGR) for FY18 to FY21E of 26.6% and a two-year CAGR of 28.7% for FY19E to FY21E. We would therefore classify LVCG as a high growth company on this basis, especially with EBITDA and PBT showing a higher rate of compound growth, as shown in the Investment Case section of this note . The two- year CAGR for profit measures are even more impressive, with EBITDA growing by 102% and pre-exceptional PBT and adjusted EPS by 279%.
Turnover £6.555
%increase 23%
Gross profit £4.235
Gross margin 64.6%
EBITDA £1.108
EBITDA margin 16.9%
Operating profit £0.538
operating margin 8.3%

[gingernut1] 25/11/2019 23:01

Nice try jacNife, but there’s a major flaw in your assumptions on operating costs. The expectations are very clearly stated which are

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