TIDMIMMO
RNS Number : 5570D
Immotion Group PLC
30 June 2021
30 June 2021
Immotion Group plc
("Immotion", the "Company" or the "Group")
AGM Trading Update
To coincide with the Company's Annual General Meeting later
today, the Company is pleased to provide an update on recent
trading. All figures stated below are unaudited.
Following continued strong growth in revenues, the Group
achieved a small EBITDA profit in May 2021 followed by a
substantial EBITDA profit in June 2021. This has been driven by
further significant growth in the revenue of our Location Based
Entertainment (LBE) sites.
Each of the last three months have seen record revenue in our
LBE business: GBP402k in April, GBP457k in May, and June is
expected to be in excess of GBP600k.
Total Group revenue for June (including Home Based Entertainment
(HBE) and Uvisan) is expected to be over GBP700k and this should
result in underlying EBITDA of circa GBP100k.
With the busy summer months ahead of us, and further installs in
the pipeline, we expect Q3 to be a period of very strong
trading.
Location based Entertainment (LBE)
Almost all of our LBE sites are now back in operation. We
currently have 280 headsets in operation at our partner sites and
67 headsets in operation at our five UK-based ImmotionVR Centres,
all of which have now re-opened. Only eight sites (39 headsets)
remain non-operational. Based on current guidance, we would hope
that the majority of these sites will be operational again by the
end of July.
The summer season (Q3) has historically been the busiest period
for the LBE business and, with a strong 'staycation' summer season
looking likely in both UK and USA, we expect a very strong period
of trading.
We are pleased to report that, following the very successful
launch of our 22-seat installation at Clearwater Marine Aquarium,
Florida, USA, we have a number of discussions ongoing regarding
larger LBE formats and we hope to announce a number of new
installations in the coming weeks. This larger format with mini
theatre and pre-show will be our main area of focus as we move
forward and we believe both Clearwater and Mandalay Bay demonstrate
that this offering can provide a new core attraction for partner
sites, as well as delivering significant revenues for both
parties.
With a stock of fully paid motion platforms, we are well placed
to undertake these installations with reduced incremental cash
investment. We continue to refine our larger format offering,
including planning for launch into the zoo market, which we believe
is significantly larger than the aquarium market.
Home Based Entertainment (HBE)
Revenue in our HBE division (Let's Explore) is in in line with
our expectations, with the main focus being on preparation for the
busy Q4 period. The consumer "intent" in the Q4 period is
dramatically increased as we saw in 2020, when we sold circa 11,000
units. We therefore believe that Q4 which includes Black Friday,
Thanksgiving and Christmas, should support significant sales
volumes.
With trading now established on Amazon in the UK, the USA and
Canada, this division should be well set to capitalise on this busy
period. As previously announced, we have forward purchased 34,000
units of stock with substantial deposits already paid, ensuring
significantly reduced product cost and the ability to plan
ahead.
Uvisan
Uvisan continues to develop its re-seller network and is
delivering a monthly contribution to the Group's fixed costs based
on sales of its UV cleaning cabinets alone. We continue active
discussions with potential re-sale partners and will update as
appropriate.
In addition, the CE certification for "Cleanroom by Uvisan" is
now complete and this will allow us to begin to market this product
in earnest through our own efforts and those of our growing
re-seller network.
Outlook
The strong recovery of our LBE business underpins our confidence
in our core business model. Demand from aquariums remains strong,
and the move to larger immersive theatre style installations and
entry into the zoo market should provide ample growth opportunities
for the foreseeable future.
Our cash position remains satisfactory and with considerable
investment already made in motion platforms and Let's Explore
Oceans stock, along with the move to profitability, we feel we are
well placed to take advantage of the opportunities that lie ahead
of us.
We anticipate a strong and profitable summer season in our LBE
business. As we move into Q4 we should benefit from a larger LBE
estate and HBE's peak season, as well as continued progress from
Uvisan. Accordingly, we are looking forward to a strong second
half.
With plentiful growth opportunities available, we now look
forward to H2 and beyond with renewed confidence.
Withdrawal of AGM Resolution
Following discussions with a small number of significant
shareholders, the Company has decided to withdraw Resolution 5 from
today's AGM. Resolution 5 was a special resolution which, if
passed, would have given the directors of the Company the authority
to dis-apply pre-emption rights when allotting shares in certain
circumstances.
The withdrawal of Resolution 5 does not affect the validity of
the remainder of the Resolutions to be proposed at the AGM later
today and all proxy votes already submitted in respect of the
remaining Resolutions remain valid.
Martin Higginson, Immotion Group CEO said: "The bounce back in
our Location Based Entertainment revenues is extremely encouraging.
Demand for larger installations is gaining traction in both the
aquarium and zoo markets, and with these delivering greater revenue
per location, we have ample growth opportunities in front of us for
the foreseeable future."
"The move into profitability is a major milestone for the
business and one, given the last 14 months, which we are very glad
to see arrive. As we add new sites, we should begin to see a
substantial impact on overall profitability"
"I am extremely proud of the team at Immotion, we have battled
through one of the worst periods for business in living memory and
have, in my view, come out leaner, wiser and fitter."
"With growing revenues and a number of new installations on the
horizon we are looking forward, with confidence, to what we believe
will be an incredibly busy summer season."
Enquiries:
For further information please visit www.immotion.co.uk , or
contact:
Immotion Group Martin Higginson Tel + 44 (0) 207
David Marks 220 1666
WH Ireland Limited Adrian Hadden Tel + 44 (0) 207
(Nomad and Joint Darshan Patel 220 1666
Broker) Matthew Chan
Alvarium Capital Alex Davies Tel: +44 (0) 207
Partners 195 1458
(Joint Broker)
Shard Capital Partners Damon Heath Tel: +44 (0) 20 7186
LLP Erik Woolgar 9900
(Co-Broker)
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END
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(END) Dow Jones Newswires
June 30, 2021 02:00 ET (06:00 GMT)
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