Reach4entertainment jumps as it forecasts significant earnings
The integrated, live entertainment communications group told investors on Tuesday that a strong performance had been driven by its continued success in acquisitions throughout the year as well as a turnaround strategy that was ‘bearing fruit.’
Marc Boyan, Chief Executive of R4E pinpointed the group’s turnaround strategy as delivering continued growth and improved profitability.
Sold Out, which has led the company’s diversification strategy into live entertainment, had made a ‘significant contribution’ in the nine-month period since its acquisition in March 2019, with revenues above expectations, the company noted.
Shares in Reach4entertainment Enterprises were trading 17.14% higher at 1.025p during Tuesday trading.
The group’s full-service arts and live entertainment ad agency, SpotCo, has continued to deliver -- working on 43 shows during 2019 with particular success at the Tony Awards.
SpotCo has rebuilt its revenue and profits after facing what it has described as ‘a couple of difficult years’. R4E said this has enabled the agency to secure a strong pipeline demonstrating the overall strength of its client service.
Meanwhile, Dewynters secured a series of new shows in 2019, including Joseph & the Amazing Technicolour Dreamcoat and Jesus Christ Superstar. The shows commenced in the last quarter of 2019 resulting in revenue following through into 2020.
R4E hailed Dewynters' 'strong start' to 2020 with its shows including Moulin Rouge, Hairspray and Disney’s popular Frozen, set to open later this year.
Looking ahead, the group says it has entered 2020 in a ‘strong position’ and is confident in its ability to diversify its client base and build market share further.
This morning’s statement added that R4D had seen a strong year-end balance sheet with a total net cash of £2.75 million.
Follow News & Updates from Reach4entertainment Enterprises here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.