Live Co Group PLC on Tuesday said that it remains uncertain whether it can continue as a going concern, despite undertaking significant cost-cutting measures between 2022 and 2023.
On Tuesday, the Surrey-based live events and entertainment group released its results for the six months to June 2023, alongside the overdue results for the 12 months ended December 31 2022.
Despite a ‘mixed’ 2022, due to event cancellations and postponements, Live Co’s group revenue increased 79% to GBBP4.8 million from £2.7 million in 2021.
However, the group incurred a net loss of £9.7 million for the year, widened from a £3.3 million loss in 2021. This included an impairment charge of £4.1 million relating to goodwill arising from the 2017 acquisition of Parallel Live Group and the 2022 acquisition of StART.Art Global Ltd, an art-sales platform in which Live Co maintains a 20% stake.
Earnings before interest, tax, depreciation and amortisation came to a £2.2 million loss in 2022 before exceptional items, widened from £1.7 million a year prior.
As at December 31 2022, Live Co had £1.3 million in total debt. As with 2021, no dividend was declared for the year, and losses per share were up to 5.0 pence from 2.0p the previous year.
Live Co said that it had made progress in the six months ended June 2023. Revenue for the period was £5.3 million, more than doubled from £2.6 million in the first half of 2022. Pre-exceptional item Ebitda swung to £828,000 from a loss of £597,000 a year prior. The firm also swung to a pretax profit of £138,000 from a £1.4 million loss the year before.
Uncertainty still exists over whether Live Co can continue as a going concern, the company said, which prompted a strategic review of the business in 2023. The company subsequently disposed of assets considered ‘non-core’, such as the underperforming Mythical Beasts and Outer Space BrickLive Lego tours, sold by Live Co for £350,000 in May.
Live Co has also agreed with the owners of StART.Art to cancel the proposed acquisition of the remaining 80% of the company, in return for the cancellation of all amounts owing up to £500,000 in cash and £519,800 in shares. The company will seek shareholder approval to cancel the acquisition no later than March 28, after which it will retain its original 20% interest.
In July, shares in Live Company were suspended from trading due to delays in the publication of its 2022 financial results. While these have now been released, Live Co said it will remain suspended from trading until it concludes its refinancing arrangements, including a £500,000 equity placement agreed with its broker, CMC markets on Tuesday.
Chair David Ciclitira also agreed to provide a two-year, £1.2 million convertible loan note to the company, of which £570,000 has been advanced.
The company’s non-executive directors have agreed to convert their outstanding director fees, around £221,193, into new ordinary shares. In addition, certain other creditors have agreed to convert the £860,080 owed by Live Co into new shares.
Live Co is also in ‘advanced negotiations’ with a cornerstone investor for a £1.5 million loan and a potential equity investment in the company. However, Live Co notes that there is no guarantee of this concluding.
Live Co Chair Ciclitira said: ‘The directors are focused on a path to profitability, based on de-risking the business model and reducing the funding requirements which were proving a burden on the company.’
Shares in Live Co last traded at 2.08 pence each in June 2023.
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