TIDMIMMO
RNS Number : 6036J
Immotion Group PLC
23 December 2020
Immotion Group plc
("Immotion", the "Company" or the "Group")
End of year Trading Update
Immotion Group, the UK-based immersive entertainment group, is
pleased to update the market on current trading.
Despite current Covid-19 challenges, the Company has seen
un-audited revenue increase steadily in recent weeks. The Group
launched Let's Explore Oceans ("LEO") in mid-October and total
group revenue for October was GBP369k and November was GBP573k, an
increase of 21%, and 87% respectively compared to September (prior
to the launch of LEO).
Home Based Entertainment
Since the launch in mid-October 2020, sales of the Home Based
Entertainment product, LEO have exceeded expectations with total
units sold up to and including 22 December, of over 11,000
generating total retail sales, including VAT, exceeding
GBP800,000.
Following the recent placing, announced on 19 November 2020, the
Company has now secured further stock, as well as identifying an
outsourced fulfilment facility, allowing it to target a launch of
the product in the USA in the second half of February 2021.
The product is now manufactured entirely in China, with complete
boxes being supplied direct to our fulfilment houses. This process
will significantly reduce product costs as the Group moves
forward.
We are very encouraged by this launch and we will look to expand
both geographically and product wise on a measured basis in 2021,
so that we will be well placed to maximise the opportunity around
Christmas 2021.
Location Based Entertainment
The Location Based Entertainment ("LBE") business continues to
be impacted by the Covid-19 pandemic, and whilst our UK operations
are now closed again as a result of recent UK Government
requirements, we have seen one further USA site re-open since our
last update (and none closed). Whilst capacities remain restricted
in many, we are, in the circumstances, encouraged by demand. The
Nevada state authorities have recently limited user numbers to 25%
of normal capacity in certain attractions, which will be reviewed
in mid-January 2021. This will inevitably impact our revenues in
this location significantly in this period.
Operations in the two Merlin locations in Australia - Melbourne
and Sydney - remain open and are now entering their busier summer
period.
Costs have, where possible, been reduced in the LBE business,
and where locations that are operated by the Company (IVR locations
in the UK and the two UK partner sites operated by Immotion) have
been closed due to Covid-19 restrictions, staff will be placed on
furlough.
Despite the current trading challenges, we continue to see a
healthy level of enquiries regarding possible new installations
post Q1 2021 and have a number of active dialogues ongoing. We
remain focused on larger sites but will remain cautious and
selective before committing to new sites.
Whilst the short-term impact of Covid-19 is very frustrating, we
remain confident that demand will be very strong for our LBE
offering when any sort of normality returns. This would result in
very substantial uplifts in revenue and contribution from our LBE
business.
Uvisan
We continue to sell disinfection cabinets under our Uvisan brand
with the business making a good contribution in December 2020.
We are pleased that Uvisan is now recommended by Hewlett Packard
for disinfection of all of its virtual and mixed reality headset
range. The recommendation came after weeks of extensive testing by
the tech giant.
In the New Year, Uvisan will also launch a new room disinfection
product, utilising ambient UV light for the rapid disinfection of
room surfaces. This will incorporate proprietary control and
security features.
Summary
2020 has clearly been a tough year for the Company. As a direct
result of the pandemic, much of the expected revenue in its LBE
business did not materialise. The Company is hopeful that revenues
will return rapidly towards normalised levels once the Covid-19
vaccine has been widely rolled out and lockdown restrictions
ease.
When sites are open, and customers are allowed to attend,
revenue is encouraging and certainly supports our view that when
normality returns this business will see a very strong bounce back.
Consumers (and families in particular) in our view will be ready
for new experiences after so many months of restrictions.
The creation of the 'Let's Explore' product, starting with LEO
has allowed the Company to create an in home business division and
revenue stream to complement the LBE division which has proved
helpful during the pandemic. This innovative product allows people
to enjoy all the immersive and educational elements of the Immotion
offering, albeit without the motion, in the comfort of their own
home. Sales have to date been very encouraging, and the Company
looks forward to opening new territories starting with the USA in
2021, as well as launching new content offerings.
Uvisan has emerged from our own requirements and we are seeking
to nurture it into a more fully formed UV disinfection business,
whilst minimising capital commitment and management time. Awareness
of the product continues to grow and we now have a good range of
supportive customers to endorse the product. We will look to raise
the profile and scale of the business as we go into 2021.
Overall, we have sought to reduce costs where we can and will
continue to do so. Our LBE business, particularly in a post
Covid-19 world, and the early success of LEO, give us confidence in
the Group's prospects.
The next few months will certainly be challenging but we remain
vigilant on costs and we will take steps available to us to protect
cash, which as at 21 December 2020, amounted to circa GBP1.9m.
We will continue to seek to balance caution with investment and
growth.
Martin Higginson, Group CEO - Immotion Group plc said: "2020 has
been an extremely testing year, one we will be glad to see the back
of. Like many entertainment businesses our LBE sites have seen
their revenues hit as closures and restrictions were imposed upon
them as a result of the Covid-19 pandemic."
"We have reduced costs significantly in this division, and where
possible, we have taken advantage of the furlough grants. We have
reduced costs to a sustainable level and are confident that once
normality does return our LBE business should see a very
significant bounce back and along with Let's Explore drive the
Group to profitability."
"The creation and launch of the 'Let's Explore' Home Based
Entertainment product has been extremely well received, allowing
the Company to create a new and profitable business division. To
date, we have only been able to sell the product in the UK, where
we have been extremely encouraged by early sales. Selling over
11,000 units and generating retail sales in excess of GBP800,000 in
a couple of months is a credit to the team. Following the recent
placing we have been able to strengthen our supply chains, reducing
the cost of goods significantly, as well as opening up fulfilment
and sales in the USA as of mid-February 2021."
"We continue to look at ways of enhancing this offering, both in
terms of breadth with further genres and depth, with both 'in-app'
and additional basket purchased content, and products for existing
genres. We believe that this, combined with further geographic
spread will allow us to grow this business division
substantially."
"Sales from our Uvisan range of cabinets continue to grow.
Recommendation from HP is fantastic news and a testament to the
team's hard work, and ingenuity."
"With the recent fund raise we have, we believe, ensured we have
sufficient cash reserves to see us not only through the current
crisis, but to take the company into profitability."
"I would like to thank all the staff at Immotion for their
unfaltering dedication and hard work. I would also like to thank
all the shareholders of the Company for their continued belief in
the management and the Company."
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
(Joint-Broker)
This Announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 ("MAR"). In addition, market
soundings (as defined in MAR) were taken in respect of the Placing
with the result that certain persons became aware of inside
information (as defined in MAR), as permitted by MAR. This inside
information is set out in this Announcement. Therefore, those
persons that received inside information in a market sounding are
no longer in possession of such inside information relating to the
Company and its securities.
**ENDS**
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFFFFVFDLFFII
(END) Dow Jones Newswires
December 23, 2020 02:00 ET (07:00 GMT)
Immotion (LSE:IMMO)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Immotion (LSE:IMMO)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
