Lo-Q, the provider of queue management systems for the amusement and water park industry, announced its preliminary results for the year ended October 31st 2010. Revenue was up 16% to £20.3 million and profits before tax increased 18% to £2.3 million vs. pro-forma results to October 2009 - both in line with their broker’s forecasts from earlier in 2010. Positives for Lo-Q included revenue increases at its sites that use its flagship VQ2020 (Q-bot) queue management system and five major contract extensions for the same. These results were boosted by generally better amusement park attendance due to better weather and the successful introduction of a premium Q-bot service in which customers pay extra for reduced attraction wait times.
Less rosy was the lack of new system sales for the year (though one VQ2020 system in a small park was installed). Revenues from installed Q-txt systems were below pro-forma FY 2009 levels. Recognising some weakness on the marketing front, the company appointed a new CEO, Tom Burnet, in October and embarked on a strategic and operational review. The company has since strengthened the sales and marketing team and has signed heads of terms for three new clients since the year end (Blackpool Pleasure Beach, Parques de Attracciones in Madrid and Heide Park in Germany).
As part of the strategic review, Lo-Q is also examining bolt-on technology acquisitions and partnering opportunities in cashless transaction and point of sale vendors.
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