11th May 2015 17:25
LONDON (Alliance News) - Reach4Entertianment Enterprises PLC Monday said it expects to report a loss in 2014 following the revaluation of its assets and therefore will not meet current market expectations for its full-year pretax profit.
The media and entertainment marketing company said it is in discussions with its bank with regards to a restructuring of the company's bank loan or to replace it altogether, and as part of these discussions has undertaken a revaluation of its assets which will result in a "significant" non-cash impairment charge for 2014.
It said that while it expects its full-year trading results to be in line with market expectations, the impairment charge will result in a loss for the year, meaning the company will not meet pretax profit market expectations.
Reach4Entertainment added that the impairment charge will result in a serious loss of the company's capital position and so a general meeting will be called to consider whether any, and if so what, steps should be taken.
"We are hopeful that we will successfully conclude our discussions with our lenders and agree a new debt structure which provides the basis for a positive future for the company," Chairman David Stoller said in a statement.
Shares in Reach4Entertainment closed up 4.9% at 1.39 pence on Monday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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