REG - Reach4Entertainment - Covid-19 (Coronavirus) update statement
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 £2.75 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 continues 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 plc
Marc Boyan, CEO
Paul Summers, COO
Phone: +44 (0)20 7968 1655
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.
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