Lo-Q, provider of virtual queuing systems for theme parks, water parks and major attractions have recorded a strong performance in their annual results.
In the year to 31 October 2011 the headlines were:
- Revenue up 20% to £24.5m
- Profit before tax up 17% to £2.7m
- Net cash up 25% to a healthy £7.5m
The increase in revenue growth over 2010 is an endorsement for CEO Tom Burnet who was appointed in October 2010 specifically to kick start a new stage of growth for the company. (See graph right showing the year-on-year increase in revenue, with the downward trend reversing in 2011) In a recent interview with Blooloop, Burnett set out his strategy to take the tech start up to the next phase in its development:
- “to mature the business in its existing market,
- to introduce new products into those markets,
- and then in due course to the stretch our wings beyond our existing markets.”
Looking at the results in terms of existing markets, like for like sales have risen by 17%, against a backdrop of a 3% decrease in theme park attendance. In addition Six Flags have extended their contract with Lo-Q for another six years and Dollywood for a further 3 years. There was a contract win for the Q-bot at LEGOLAND Deutschland, with a total of 11 new installations expected over 2011.
New Products in Existing Markets
Lo-Q’s product for water parks, the Q-band, has been successfully trialled and Six Flags have signed up to install it in nine of its water parks. A smartphone based Q-bot is anticipated in 2011 with pilots in the US and London.
Asia is in Burnett’s sights, with the smartphone Q-bot being developed with an eye to new markets in the tech savvy East. In an anticipated move towards payment technologies, Lo-Q signed a global partnership deal with MasterCard to develop a new contactless payment solution.
Burnett summarised the results: “2011 was an excellent year for Lo-Q. We delivered significant progress from existing installations, announced long term contracted commitments in relation to existing and new products and established important beachheads in new markets. In short, we have achieved every single objective we set for ourselves at the start of the year. The strategic initiatives implemented will provide the framework for longer term progress and the hard work and determination of the team together with the continued development of innovative new products has created a strong platform on which to build in 2012.
Notwithstanding the challenges of opening 11 new operations around the world, I am confident that we have initiated the momentum that will define our future business.”