Hamilton promoter Reach 4 Entertainment jumps on higher forecasts
Shares in Reach 4 Entertainment (R4E) jumped as much as 17 per cent this morning after the theatre marketing firm upped its forecasts for full-year trading.
R4E, which runs marketing campaigns for West Ends shows such as Hamilton and The Lion King, said it expected to report revenue and profit “significantly” ahead of market expectations.
Shares in the Aim-listed firm, which is chaired by media veteran Lord Michael Grade, spiked as much as 17 per cent to 108p following the announcement.
The trading boost follows a long-running turnaround strategy at the entertainment giant, which also works with cultural organisations including the BFI and the RSC.
R4E has also been propelled by a string of recent acquisitions such as advertising agency Sold Out, which it snapped up last year in a deal reportedly worth up to £10m.
Sold Out made a significant contribution to overall trading after delivering revenue ahead of expectations, the company said.
R4E last year also bought a 50 per cent stake in Buzz 16, a production company founded by former England and Manchester United footballer Gary Neville.
Dewynters — another of the group’s marketing agencies — was also lifted by a string of client wines over the year, including Joseph and the Amazing Technicolour Dreamcoat, & Juliet and Dear Evan Hansen.
While R4E’s core business is theatre, the media company has also ramped up its focus on live entertainment, working on events such as the blockbuster Tutankhamun exhibition and Winter Wonderland.
“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,” said chief executive Marc Boyan.
“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.”
Main image credit: Reach 4 Entertainment