From what I heard from Daniel Evans I was under the impression that he wanted to keep it alive and bring it to London, specially since he's in London now co-directing The Royal Shakespeare Company and it looked like Evans felt attached to the plot of Local Hero by what he said in some interviews, but seems it might be difficult according to Guy's words.
Also by what Evans said, they have some Edinburgh representations recorded, and also some from Chichester, if the musical can't reach the London theatres, I hope they could use it in any way for fans that attended the shows and also for people that couldn't.
However, talking about this now seems so "alive" as talking about MK concerts