Reach4Entertainment's shares up despite lower earnings in ‘pivotal’ year
London-based entertainment marketing communications group, Reach4Entertainment, saw its revenue fall more than three per cent to £77.7m in 2018, compared with £80.2m for the previous year.
However, the company, which was set up by former Channel 4 boss, Sir Michael Grade, also narrowed its losses from £1.9m in 2017 to just £200,000 in 2018.
Investors seemed confident in the company's restructuring efforts and recent acquisitions, as the shares were trading 4.25 per cent higher at 1.23p on the London Stock Exchange, following the results.
The company is in the midst of an overhaul of its operations and has also made a series of acquisitions. Most recently, the company bought independent full-service advertising agency, Sold Out, in a deal worth up to £10m.
R4e also took a 50 per cent stake in independent production house Buzz 16 Productions, which was founded by former Manchester United player and respected broadcaster, Gary Neville, and former Sky Sports Premier League producer, Scott Melvin.
"It has been a pivotal year for the Group, in which the new management team, led by Marc Boyan, strategically overhauled the Company's core operations”, said Chairman of r4e, Lord Michael Grade.
“I am delighted to report that the turnaround has significantly improved how the Group's agencies are operating, which is reflected in the increase in profitability.”
"Whilst operational changes to the core business have been instrumental in returning the business to profitability, the launch of new agencies, alongside the recent acquisitions involving Sold Out and Buzz 16 Productions, are broadening the Group's offering in line with the strategy to diversify its service capabilities beyond stage and theatre."
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