Immotion Group shares were over 15% higher after the group posted an increase in revenues for the end of year trading update.
The Group launched Let’s Explore Oceans in mid-October, which led to revenues in November increase by 87% compared to pre-launch in September.
Since the launch in mid-October 2020, sales of the product have exceeded expectations with total units sold up to and including 22 December, of over 11,000 generating total retail sales. Immotion Group are planning to launch the LEO in the US in February 2021.
Martin Higginson, chief executive of the group said: “2020 has been an extremely testing year, one we will be glad to see the back of. Like many entertainment businesses our LBE sites have seen their revenues hit as closures and restrictions were imposed upon them as a result of the Covid-19 pandemic.”
“We have reduced costs significantly in this division, and where possible, we have taken advantage of the furlough grants. We have reduced costs to a sustainable level and are confident that once normality does return our LBE business should see a very significant bounce back and along with Let’s Explore drive the Group to profitability.”
“The creation and launch of the ‘Let’s Explore’ Home Based Entertainment product has been extremely well received, allowing the Company to create a new and profitable business division. To date, we have only been able to sell the product in the UK, where we have been extremely encouraged by early sales. Selling over 11,000 units and generating retail sales in excess of GBP800,000 in a couple of months is a credit to the team. Following the recent placing we have been able to strengthen our supply chains, reducing the cost of goods significantly, as well as opening up fulfilment and sales in the USA as of mid-February 2021,” he added.