Don't worry too much about the apparently hefty first-half loss at Lo-Q (LOQ). That's because only about 15 per cent of the annual turnover is generated in the first half, while new business wins mean that second-half revenue is likely to be even stronger than usual.
Through various hand-held devices, Lo-Q provides queuing systems at theme parks - allowing customers to queue without standing in line. Most theme parks are closed during the group's first half, yet Lo-Q's average revenue per guest still grew 17 per cent in the period. That's mainly due to a solid US performance, where spending per guest is traditionally higher than in European theme parks. Lately, customer numbers in Europe have also been hit by bad weather.
Moreover, the acquisition of online ticketing and payment processing specialist, accesso, in December could be a game-schanger. That operation already provides a broad range of services for over 100 top venues and has seen over 1.5 million downloads for iPhone and Android applications for its services. Lo-Q has also secured new mandates and extended existing contracts, with the increase in revenue expected to show through in the second half.
Broker Canaccord Genuity expects full-year adjusted pre-tax profits of £4.4m, giving adjusted EPS of 15.6p (from £3.2m and 14.4p in 2012).
| LO-Q (LOQ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 519p | MARKET VALUE: | £101m | |
| TOUCH: | 519-530p | 12-MONTH HIGH: | 694p | LOW: 296p |
| DIVIDEND YIELD: | nil | PE RATIO: | 51 | |
| NET ASSET VALUE: | 84p* | NET DEBT: | 11% | |
| Half-year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 3.71 | -1.12 | -4.97 | nil |
| 2013 | 5.57 | -2.34 | -9.41 | nil |
| % change | +50 | - | - | - |
Ex-div: - Payment: - *Includes intangible assets of £14.6m, or 75p a share | ||||
