Virtual Reality experts offload loss-making Japanese division
Salford virtual reality specialist Immotion has offloaded its Japanese division in a move expected to result in annual savings of around £300,000.
The company, which operates in the virtual reality entertainment sector, has transferred ownership of the loss-making business to its former managing director, for no consideration.
The branch specialised in creating high quality CGI and live action content for third parties, but made a pre-tax loss of £34,000 in the first half of the year.
The division’s remaining ongoing projects will be taken over by the former managing director.
Immotion said it has transferred several items of office and computer equipment, with no carrying value, as part of the arrangement.
“The group took the decision to focus its efforts predominantly on the creation of experiential content for VR motion platforms,” said Immotion Group.
As part of its admission to AIM (Alternative Investment Market) this Summer, which raised a total of £5.75m through an oversubscribed placing, Immotion said it would shift its focus towards creating content for VR motion platforms and would, therefore, sell off its Japanese business, which it considered ‘non-core’.
In July this year Immotion announced a partnership with Legoland Discovery Centre Manchester owner Merlin Entertainments.
The firm, which was formed from the merger of Studio Liddell, a Manchester-based CGI studio, and Los Angeles-based filmmakers C2K, provided the content for ‘The Great Lego Race’.
It also recently set up its own multi-sensory virtual reality pod in Manchester’s Arndale.
The Legoland attraction is only the second of its kind in the world, with Media City-based Immotion first installing the experience at Legoland Discovery Centre Boston, in the USA.
Last month Immotion unveiled its first set of results to the Stock Market.
In its first six months the business had an operating loss of £1.4m, but had revenues of £1.1m.
Virtual Reality revenue is expected to grow significantly in the second half of the year, following post-listing activity.
