Live Co Group PLC shares dropped on Thursday as it warned of another annual loss for 2022.
For 2021, the company reported a pretax loss of £3.3 million, narrowed from £8.4 million in 2020.
‘Whilst the foundation for successful revenue generation from the groups diverse Divisional offering... 2022 continued to be challenging as the negative impact on live events from Covid were still being felt, despite the attempts to diversify and the acquisition of the remaining share capital of StART and the commitment of investment from the Republic of Korea, the group will deliver a loss during 2022,’ the Surrey, England-based live events and entertainment company explained.
However, Live Co added it will deliver cost savings from restructuring and debt restructure. It further said that shares will be issued to some contractors.
It noted the disappointment of the cancellation of a major London event and an event in Frankfurt. It said it managed to make a profit of £80,000 from the German event and was also able to recover £137,000 of staff costs. The company aims to offer at least three events in Europe during 2023.
It said the contacts for these are multi-year and have helped to identify further options in Japan and Europe. The events are expected to generate revenue of £1 million for the Korean division. For its Bricklive division, revenue is expected to be in line with the prior year despite a reduction in tours. Revenue in the StART ART division has been ‘minimal’ but firm notes that events have continued to grow.
Live Co anticipates European events to generate more than £1 million to the K-Pop division in 2023. For the division, it said that three events are in advanced negotiations.
‘The group, with its new Chief Financial Officer John Miller, is as is standard in operational businesses, in the process of reviewing its existing debt structures with the view of renegotiating repayment schedules to align with cash flows. Further short-term liquidity facilities to assist with legacy debt repayments and operational working capital requirements are being explored,’ Live Co said.
The announcement comes a day after the company announced it signed two new contracts for events in the Netherlands with Aqua Zoo Friesland Exploitatie BV and Dierenpark Overloon Exploitatie BV for Bricklive Ocean and Bricklive Safari.
The company will release an analyst update in the first quarter of 2023.
Live Co shares fell 12% to 2.68 pence each on Thursday morning in London.
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