Trading update

RNS Number : 9899R

Lo-Q PLC

14 November 2011

 



14 November 2011

Lo-Q plc

("Lo-Q" or the "Company")

Trading update

- Lo-Q reports strong growth and trading ahead of expectations -

Lo-Q (AIM: LOQ), the AIM listed provider of virtual queuing systems for theme parks and major attractions, is pleased to provide a positive update on trading for the financial year ended 31 October 2011.

Lo-Q has delivered strong year-on-year growth during the financial year in revenue, profit before tax and net cash.  Driven by further growth in revenue from existing sites and the 'switch-on' of new mandates won during the year, the Lo-Q board of directors (the "Board") now expects results for the period to be marginally ahead of its prior expectations.

The Company has continued to make good strategic progress during the year, both financially and operationally.  The financial year has seen a 17 per cent year-on-year increase in average guest spend on our products.  We have also experienced a 9 per cent increase this year in the number of park attendees choosing to use our system, against the backdrop of a 3 per cent decline in like-for-like park attendances. Operationally, the Company has continued to develop new and innovative products, using them to make important first steps in to adjacent target markets where Lo-Q technology has the potential to enhance both visitor experience and operator returns.

The Company's Q-band product, launched during the year and designed specifically for use in the adjacent water park market, is a good example of this progress.  The product has returned impressive initial results from its first trial at a major North American site.  This positive feedback underpins our confidence in the product, its potential and our ability to target the water park market opportunity successfully over the medium to long term.

In addition, and as announced post period-end, the Company has signed a twelve-week pilot for its innovative smartphone based solution with one of the UK's best known 'single-line' attractions: the EDF London Eye.  This trial, the first of its kind in the UK, represents an important technological advancement for the Company as well as an exciting first step towards extending Lo-Q's offering outside of its core theme park base and into the promising 'single line' attraction vertical.

Commenting Tom Burnet, Chief Executive Officer of Lo-Q plc said:

"I am very pleased with the progress we have made this year.  We have worked hard to deliver new products, target new markets, invest in our people and these investments are starting to deliver real and encouraging returns.  Of course, there is more work to do to make sure that we maintain this good momentum. Nevertheless, the Board and I believe that this strong full year performance, coupled with a buoyant new business pipeline puts us in a strong position to continue to deliver growth in the months ahead."

For further information, please contact:

Lo-Q plc                                                                       [phone]

Tom Burnet, Chief Executive Officer

John Alder, Chief Financial Officer

FTI Consulting                                                             [phone]

James Melville-Ross, Matt Dixon, Clare Thomas

Canaccord Genuity Limited                                         [phone]

Simon Bridges, Kit Stephenson

About Lo-Q

Lo-Q is the creator of a virtual queuing system for theme parks and other leisure attractions that allows users to queue without waiting in line.  Lo-Q users reserve their place in a queue electronically and are notified when their turn is up, spending less time queuing and more time enjoying their day out.  

Lo-Q's system has been adopted by leading theme park and attraction operators globally, with customers including Parques Reunidos, Six Flags, Dollywood and LEGOLAND Windsor.  These operators benefit not only from happier customers but also from additional revenue streams as time previously spent queuing is instead transformed in to higher spending in park restaurants, gift shops and other retail facilities.  By the end of 2010, more than six million individuals had used a Lo-Q product and that number is growing.

The Company's technology is protected by extensive patents or patents pending in Europe, USA, Hong Kong and Japan.  The target market for this technology is large and growing, with Lo-Q currently exploring opportunities for expansion into new theme parks and new geographies as well as opportunities to develop new product for other complementary adjacent markets.

Lo-Q is listed on the Alternative Investment Market ("AIM") under the ticker "LOQ".  For further information please visit www.lo-q.com

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