TIDMR4E
RNS Number : 8946G
Reach4Entertainment Enterprises PLC
20 March 2020
20 March 2020
reach4entertainment enterprises plc
("r4e" or "the Company" or "the Group")
Covid-19 (Coronavirus) update statement
Following the announcement of the Group's trading update on 18
February 2020, the Group has continued to trade in line with
expectations with like for like sales up 30.4% on prior year for
the 2 months ending 29 February 2020. However, the sudden closure
of all live venues on Broadway and in Londons' West End in the past
week due to the Covid-19 pandemic, means the Group expects material
reductions in trading from March 2020 onwards. It is difficult to
accurately forecast the extent to which COVID-19 will impact
trading and financial performance at this time, however the Company
must prepare for a material reduction to market expectations for
2020.
In order to manage the Group's working capital and to ensure
liquidity, management are taking a highly prudent approach with the
following immediate actions:
-- Freeze on all M&A activity and capital expenditure
-- Administration costs frozen if not immediately necessary
-- Reduction in employee, Director and Non-Executive Director costs
-- Working capital is being managed very tightly
Management are in close communication with the Company's US
owned asset based lending facility provider, PNC Business Credit,
regarding its existing facility. The Group had net cash of GBP2.75
million at 31 December 2019 and has accessed additional cash
resources through its facility which enable the group to meet its
working capital requirements over the short to medium term. The
Board is closely monitoring the Company's working capital headroom
through this difficult period and c ontinues to plan for multiple
scenarios and explore various ways to mitigate the impact of
reduced activity for a potentially extended period of time.
Further updates to the market will be made in due course.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
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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