Last checked at 12 Apr 2011 07:00
12 April 2011
Lo-Q plc
("Lo-Q" or "the Company")
AGM Statement
Lo-Q (AIM: LOQ), the AIM listed provider of virtual queuing systems for theme parks and major attractions, will hold its Annual General Meeting today at 10.30, during which the Chairman of the Meeting will provide the following pre-close update on trading for the six months ended 30 April 2011.
The Board is pleased with the operational and strategic progress that has been made by the Company so far this year. At the time of his appointment as Chief Executive in October 2010, Tom Burnet identified the need for investment in both our sales functions and in our product development activities. Those investments have now been made in the first half of the year and we are pleased with the early and positive results that these are generating.
This, combined with the new park installation costs and the Water Park trials, means that the Company will, in line with current expectations, report an increased loss for the first half when compared to the same period last year. Importantly, evidence of the benefits our investments are bringing to the business is already starting to come through. In recent weeks the Company has announced a significant number of new business gains, which mean that its VQ2020 queuing technology will be operational in four additional parks in the 2011 season. Those parks are Blackpool Pleasure Beach (UK); Parque de Atracciones (Spain - Parques Reunidos); Heide Park (Germany; Merlin Entertainments); and the recently announced Movie Park Germany (Germany - Parques Reunidos). Installation of Lo-Q's system is now complete in the first three of these and is ongoing in the fourth. We are also pleased to have been able to announce an incremental three year contract with our long standing client, Dollywood (USA).
The Board is particularly encouraged by the fact that the majority of these business gains are new mandates won with existing customers. These customers have already used our system succesfully within other parks in their portfolios and we are delighted by their decision to extend the use of our system. The Company continues to pursue opportunities to expand our presence across existing park customers, where the Company believes real opportunity exists to expand our business, as well as cultivating new client relationships.
The Company continues to focus on opportunities to develop new products that could take our technology into adjacent, complementary markets. The Company announced in February that it was planning short operational trials of its Q-credits wristband technology at two American water parks during the summer of 2011. The Company is pleased to report that the opportunity has now arisen to undertake one longer, full-season trial at a park owned by a key customer. As such it is now the Company's intention to focus its Q-credits trial work on this leading US water park.
In addition to these new business gains we have seen an encouraging start to the early season trading from the Company's existing park customers and as a result the Board is confident that Lo-Q remains on track to perform well and in line with market expectations for the year as a whole.
Board changes
The Company is committed to operating to high standards of corporate governance. Significant progress has already been made in this respect with the appointment of Tom Burnet as Chief Executive Officer, the restructuring of the Board and the appointment of David Gammon as a Non-Executive Director.
A further announcement relating to the appointment of an Independent Non-Executive Chairman will be made shortly.
For further information, please contact:
Lo-Q plc +44 (0)118 934 7400
Tom Burnet, Chief Executive Officer
Financial Dynamics +44 (0)20 7831 3113
James Melville-Ross, Matt Dixon, Clare Thomas
Canaccord Genuity Limited +44 (0)20 7050 6500
Simon Bridges, Kit Stephenson
About Lo-Q
Lo-Q plc (AIM: LOQ) designs, installs and operates systems which allow members of the public to make ride and show reservations when they visit a theme park or other attraction. The dynamic virtual queuing concept arose because of a wait in a line by Leonard Sim and his family in a Florida theme park in the 90's. The ride had mechanical problems, which meant that the almost 2 hour wait was only a waste of time.
Lo-Q plc is directed by an experienced board supported by a strong management team and dedicated staff. Our headquarters and development labs are at Ruscombe Park, Twyford, where we employ a team of highly skilled engineers carrying out our hardware, software and systems design and run our sales organisation. We have our USA headquarters in Lithia Springs, Georgia, where support, financial, installation and operational staff are based.
Lo-Q's flagship product, VQ2020, is a true virtual queuing system for theme parks. Lo-Q's proprietary hand-held units, called Q-bots, are used in major theme parks around the world. By the end of 2010 Lo-Q passed its 6 millionth user of the Lo-Q system. The company has extensive patents or patents pending in Europe, USA, Hong Kong and Japan and is investigating other markets for queuing technology.
Lo-Q also owns a Q-txt product which allows mobile phone users to reserve their place in line. Users purchase credits that are used to reserve a time to ride. The user then receives a text with details of their reservation, time and a unique code which is used to gain entry and verify their booking.
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