15th Sep 2014 07:36
LONDON (Alliance News) - Reach4entertainment Enterprises PLC saw its shares rise Monday after it expressed confidence in at least meeting market expectations for the full year, as it swung to a profit in the first half of the year thanks partly to a strong performance in its New York operations.
The media and entertainment company posted a pretax profit of GBP709,000 for the six months to June 30, compared with a pretax loss of GBP77,000 in the year-earlier period, as revenue improved to GBP41.5 million, from GBP35.0 million.
Revenue growth was driven by a strong performance from the company's Spot & Company Manhattan business in New York, as market conditions on Broadway were buoyant and it delivered a number of one off performances.
This offset a small decline in its London businesses, Dewynters and Newmans. At Dewynters a number of shows were unexpectedly cancelled, although the business continued to grow non-West End work, which helped to offset this decline.
Newmans' revenue was hit by a London cinema opting to digitalise its external advertising hoardings, Reach4entertainment said. Newmans' is weighted towards the second half due to pre-Christmas film launches and the run in towards Oscar season.
Reach4entertainment said that its improved performance was as a result of extensive restructuring across its operations. Although it has traditionally seen a heavier weighting in the second half, it expects a more even weighting for the full year due to Spot & Co's strong first half performance.
"This is an exciting time for r4e. The group is performing well, and I am confident that we will, at the very least, meet market expectations for the full year," said Executive Chairman David Stoller in a statement.
Allenby Capital Ltd is currently forecasting that the company will report a pretax profit of GBP0.95 million and earnings per share of 1.14 pence in the current financial year, according to data on Morningstar.
Shares in Reach4entertainment were trading up 15% at 5.60 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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