TIDMR4E
RNS Number : 2735D
Reach4Entertainment Enterprises PLC
18 February 2020
18 February 2020
reach4entertainment enterprises plc
("r4e" or "the Company" or "the Group")
Year-end trading update
reach4entertainment enterprises plc (AIM: R4E), the integrated,
live entertainment communications group, is pleased to provide the
market with a trading update for the year ended 31 December
2019.
Highlights:
-- Group expects to report full year adjusted EBITDA* and
revenue significantly ahead of market expectations
-- Turnaround strategy bearing fruit resulting in strong performance
-- Sold Out, acquired in H1 2019, made significant contribution
in the nine-month period since acquisition, with revenues above
management's expectations
-- SpotCo won 20 new shows in 2019 and has a strong 2020 pipeline
-- Dewynters secured significant wins in 2019, including Joseph
and the Amazing Technicolour Dreamcoat, & Juliet, Dear Evan
Hansen and Jesus Christ Superstar
-- Strong year-end balance sheet with net cash of GBP2.75 million
* Adjusted EBITDA is before exceptional items and share based
payment charges
r4e made excellent progress in 2019, reflecting the continued
success of the turnaround strategy. As such, the Company expects to
report revenue and profit significantly ahead of market
expectations. r4e's performance has been driven by the continued
success of the Group's acquisitions throughout the year, combined
with the continued positive performance of the Company's core
businesses.
SpotCo has continued to deliver under the new management team ,
working on 43 shows during 2019. The agency's clients enjoyed
success at the Tony Awards, with Hadestown winning 8 Tony Awards
and The Ferryman winning Best Play. After a couple of difficult
years, SpotCo has been able to rebuild revenue and profits to
levels last generated in 2015/2016, reflecting the strength of its
client service and enabling it to secure a strong pipeline. 20 new
shows were won throughout the year and are now expected to open in
2020 and 2021, amongst which are K-POP, The Music Man and Who's
Afraid of Virginia Woolf . Separately, SpotCo won a significant
mandate to work in non-theatre entertainment, working with Mills
Entertainment on a new arena show developed in partnership with
Penn and Teller; Museum of Broadway; and Josh Groban's Big Radio
City Show.
After Dewynters UK experienced a slower first half as six major
London theatre shows closed at the end of 2018 and beginning of
2019, it won a series of significant new shows in 2019, including
Joseph & the Amazing Technicolour Dreamcoat and Jesus Christ
Superstar. These shows only started to spend in Q4 2019, resulting
in the revenue following through in 2020. Outside of theatre,
Dewynters worked on immersive theatre experiences and live
entertainment shows, including the opening of the Tutankhamen
blockbuster exhibition and Winter Wonderland, London's biggest
Christmas attraction. Dewynters has started the new year in a
stronger position with shows including Moulin Rouge, Hairspray and
the Disney smash hit, Frozen, set to open in 2020.
Newman Displays had an extremely active year. During 2019 the
agency streamlined production to offer clients a fast turnaround of
high-quality signage and displays for their shows and events.
Newman fitted displays for 113 West End Theatre productions, such
as Magic Mike, the Lion King and Hamilton, as well as displays for
live events such as the Olivier Awards and Capital Radio's
Liverpool Festival. In the cinema sector, Newman continued to lead
the market for activity at premieres, experiential, press and
publicity campaigns. With the proliferation of streaming platforms,
there has been an increase in demand for premiere work, resulting
in more opportunities and further expected growth.
Meanwhile, Wake the Bear, Dewynters Amsterdam and Buzz 16
continue to make good progress. The strategic communications
agency, Wake the Bear, which launched in mid-2018, built its client
roster from 4 in 2018 to 12 in 2019. New client wins included
Harvey's Furniture and Simba Sleep. The business has also been
making key hires with the experience and expertise to support the
future growth expected in 2020. Wake the Bear has made a profit in
2019 and has already secured 2 new client wins in the new year.
Following the acquisition of a 50% stake in Buzz 16 at the
beginning of 2019, r4e has worked closely with the business to
identify new opportunities and has a number of exciting new
projects in the pipeline for 2020. In Q4 2019, Buzz 16's successful
documentary series, "Class of '92 : Full Time" was renewed for a
further two seasons which will continue to contribute to earnings
in the coming year, whilst "Soccerbox" returned for a third series
airing on Sky Sports, NBC and BEIN.
Whilst r4e's core agencies have continued to deliver organic
growth, the Group's focus on diversifying into live entertainment
has been led by Sold Out, which was acquired in March 2019. Sold
Out made a significant contribution in the nine-month period since
it was acquired, with revenues above expectations. Digital
advertising continues to grow and Sold Out has been able to utilise
the services of companies within the Group to enhance its
statistical reporting ability to clients.
2020 Outlook
r4e has entered 2020 in a strong position and the Board is
confident in the Group's ability to continue to diversify its
client base and build market share . The Board has also been
particularly pleased with the improved efficiencies and greater
level of collaboration across the Group.
Marc Boyan, CEO of r4e, commented: "Our turnaround strategy
continues to deliver growth and improved profitability, with the
Group benefiting from broadening its services into new areas of
live entertainment and being more operationally efficient. We are
now well-placed to continue this momentum into 2020 as we continue
to strengthen our market offering and build upon the strong
pipeline of new clients and projects already secured."
For information, please contact:
reach4entertainment enterprises Phone: +44 (0)20 7968 1655
plc
Marc Boyan, CEO
Paul Summers, COO
Yellow Jersey PR Phone: +44 (0)20 3004 9512
Charles Goodwin Email: r4e@yellowjerseypr.com
Georgia Colkin
Annabel Atkins
Grant Thornton, NOMAD Phone: +44 (0)20 7383 5100
Philip Secrett
Jamie Barklem
Seamus Fricker
Dowgate Capital, Broker Phone: +44 (0)20 3903 7715
James Serjeant
David Poutney
Notes to Editors
reach4entertainment enterprises plc ("r4e") operates a
collection of theatrical, film and live entertainment marketing,
PR, advertising and display agencies, across the world. The Company
uses its extensive experience in the live entertainments space to
create value through investing in innovative and established
agencies that provide communications services to a range of clients
involved with theatre, film, concerts and more.
For further information on r4e you are invited to visit the
Company's website at www.r4e.com .
Spot and Company of Manhattan, INC.
A global leading full-service arts and live entertainment
advertising and marketing agency. In an ever-changing media
landscape, it stays ahead of the curve with a mix of bold
positioning through interactive, broadcast, environmental and print
campaigns.
https://www.spotnyc.com
Dewynters Limited
A leading independent arts, events and live entertainment
marketing specialist. The agency's work in theatre, museums,
attractions, sport and music is seen right across the globe.
http://www.dewynters.com
Newman Displays Limited
The UK's leading large-scale outdoor signage, front of house,
marquee display and installation company. Clients include major
West End theatre productions, leading film companies, cinemas and
major global events.
http://www.newman-displays.com
Wake the Bear Limited
A marketing communications agency that supports businesses to
invent, reposition and regenerate their brands in order to grow.
The agency carries out brand strategy, communications planning and
end-to-end activation.
https://www.wtb.london/
Story House PR Limited
A new public relations agency for the theatre and live
entertainment industries, operating in the UK and internationally.
The agency crafts engaging campaigns for audiences, driven by
strategy: the right channel, at the right time, with the right
message. Fully integrating PR with paid media and social, ensuring
all elements of a campaign are working together, Story House
collaborates with its clients to ensure its work is dedicated to
realising their ambitions.
www.storyhousepr.co.uk
Buzz 16 Productions
Buzz 16 is an independent production company, which creates both
short and long form sports orientated content. The Company was
co-founded by former Manchester United player and respected
broadcaster, Gary Neville, along with former Sky Sports Premier
League producer, Scott Melvin.
https://buzz16.uk
Sold Out
Sold Out is an independent full service advertising agency,
specialising in arts and entertainment for over 25 years.
https://soldout.london
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END
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