IMMOTION GROUP (LSE: IMMO.L) recently raised further funds to become the market leader in “out of home” Immersive Entertainment Experiences……. by combining the VR content with leading-edge motion platforms; offering consumers in high traffic leisure destinations, such as shopping malls, and theme parks state of the art VR experiences.
The customer puts on a Virtual Reality (VR) Headset and is strapped into a Pod ‘chair’ that moves to the 3d immersive experience in the headset. A recently won concession increased the number of installed VR headsets, (“seats”) from 105 to 191, an increase of 82%. This is out of the world VR roller-coaster fun, for just £5 a ride, could grow fast.
Immo recently raised £3m at 6p, which was supported by directors and is to accelerate its ambitions to become the first mass market consumer brand for VR motion platform experiences in UK, Europe, Middle East and the USA. The VR experience market is forecast to grow from $1bn to $8bn by 2022. It has developed multi-award-winning creative production and content experiences and the exclusively install them to a real estate of Pods. Revenues are generated from the sales of the pods and then the continued use, rather like the cheap printers and the expensive ink model. IMMO has agreements with some of the largest ‘out of home’ entertainment and property companies in the UK, including Merlin Entertainment’s Lego Land, 7Fun and major shopping centre owners. There is likely to be news as there is visibility on over 200 additional headsets, expected to be installed in 2019.
The Motion Platforms are being sold and installed throughout Europe, Middle East and the USA, at a mark-up on cost. These Platforms will be sold with pre-loaded content(rides) developed by Immotion. The business client will buy the machine as well as either a ‘life of machine’ license to initial content supplied with the machine or can buy credits for rides these credits can be topped up via the Content Management System. Trading for 2018 is in line with market expectations and a positive EBIDA is expected for the year to December 2019.
Financials
The IPO last year raised £5.75m with the recent funding there is sufficient cash to accelerate the planned capital expenditure as the new seats are rolled-out.
Trading Strategy
IMMO are set to accelerate and are the last of our Ten shares that we think could double in 2019.
IMMOTION GROUP (IMMO.L)
6.25 p (6p-6.5p)
Mkt Cap: £12.2m
Next Results: Finals to December
https://immotion.co.uk/ – well worth a visit
By Andrew Hore & Jon Levinson
Andrew has been writing about small companies for 25 years, following the fortunes of many companies, both successful and unsuccessful. He worked at the Investors Chronicle for 12 years, ending up as smaller companies editor. He then went on to write AIM Bulletin and he is currently editor of AIM Journal and AimMicro.com. He is a former AIM journalist of the year and was on the shortlist for the journalist of the year at the Small Cap Awards.
Jon has been an analyst, a journalist, a fund manager and is currently a corporate broker. He will strictly never write on corporate clients. His MBA dissertation was on filling the Smaller Companies Equity Gap. When writing the Penny Share Focus he learned that not all that glitters is gold.
