| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Immotion Group Plc (LSE: IMMO) is a UK-based leader in virtual reality (VR) entertainment and edutainment solutions, specializing in location-based VR experiences and consumer VR products. Founded in 1996 and headquartered in Nottingham, the company operates globally, partnering with leisure venues, theme parks, and retail locations to deliver immersive VR attractions on a revenue-sharing model. Immotion Group serves markets in the UK, US, Australia, UAE, China, and Europe, offering both in-home and location-based VR entertainment. The company also develops proprietary software and hardware, positioning itself at the forefront of the rapidly growing VR entertainment sector. With a focus on innovation and scalability, Immotion Group capitalizes on the increasing demand for interactive and immersive digital experiences in the leisure and education industries.
Immotion Group Plc presents a high-risk, high-reward investment opportunity in the emerging VR entertainment market. The company's revenue-sharing model with partner sites provides scalable growth potential, but its financials reflect challenges, including a net loss of £1.99 million in FY 2021 and negative EPS. The high beta (2.46) indicates significant volatility, aligning with the speculative nature of early-stage tech ventures. Positive operating cash flow (£292k) suggests some operational viability, but capital expenditures (£829k) highlight ongoing investment needs. Investors should weigh the company's first-mover advantage in location-based VR against execution risks and competitive pressures in the fast-evolving immersive tech space.
Immotion Group competes in the niche but growing location-based VR entertainment market, differentiating itself through a capital-light revenue-sharing model that reduces upfront costs for venue partners. The company's global footprint across leisure venues and theme parks provides a distribution advantage over pure-play VR hardware manufacturers. However, its small scale (£9.39m revenue) limits R&D spending compared to deep-pocketed tech giants entering VR. Immotion's dual focus on consumer VR products and B2B location-based solutions creates diversification but also spreads resources thin. The lack of proprietary blockbuster IP may hinder differentiation as competitors license major entertainment franchises. The company's partnerships with established leisure operators provide some defensive moat, but scalability depends on broader VR adoption rates, which remain uncertain outside core gaming demographics.