Reach Share Discussion Threads

[john09] 10/11/2023 12:04

Still zero strength here

[grafter] 10/11/2023 09:00

Reach for the bin :-(

Reach chief executive Jim Mullen has announced that 450 jobs are to go across the business with chief digital publisher David Higgerson confirming that 320 of them will be editorial roles.

The cutbacks appear to signal the end of the company's ambition to extend its 'Live' online brand across the whole of the UK, which saw Reach expanding into areas traditionally served by other major publishers.

"Perhaps the most shocking news is that a company which once sold over 100,000 copies of its newspapers, the Bristol Evening Post and Western Daily Press and Bristol Observer, every day from vast offices on Temple Way, Bristol is going to shut its new offices, leaving it without a base at all."

[eigthwonder] 10/11/2023 08:18

The Digital story is stalling but not dead. But I also know that management were willing to try out a whole range of ideas to find out what might work. I have heard Mullin say that when he was at The Sun one of their biggest earners was the Sun Bingo (I think) and that came about after a low cost "let's see if this works" experiment. So some closures of Digital initiatives shouldn't a surprise.

[grafter] 09/11/2023 00:34

- Computer says no"

[harry_david] 08/11/2023 22:01

They cut costs by 5% or more each year, it is just a reflection of the decline in print news. The difference this year is that growth in digital has temporarily stopped and the print jobs decline has no offset. When digital kicks on again the numbers will even out again.

[saltaire111] 08/11/2023 21:01

450 jobs to go. Things must be bad, real bad!

[john09] 02/11/2023 10:38

We should be in the 90ps to track FUTR

[john09] 02/11/2023 10:37

FUTR looking stronger than this again

[john09] 27/10/2023 16:00

Bit of life

[dougmachin] 25/10/2023 13:01

This is what Reach company secretary emailed me. Nice to get a response.

So kudos to swynemap

I'm reading that this means in the future RCH can now award dividends up to 605.4 million. That doesn't mean though that they've got 605.4 million to dish out now.

[dougmachin] 25/10/2023 12:59

Hi, here is our response:

As at 31 December 2022, Reach plc reported retained earnings of £111.8m.

Reach plc is proposing to undertake a capital reduction (subject to shareholder and court approval) to reduce its capital by cancelling the amount held in Reach plc’s share premium account (£605.4 million) and creating “distributable reserves” of the same amount. This is a non cash transaction between balance sheet accounts.

Distributable reserves are reserves out of which dividend or other distributions to shareholders can be made. The distributable reserves created as a result of the capital reduction will maintain the Company’s capacity to make future payments of dividends or other distributions to its Shareholders, as considered appropriate and in accordance with and subject to the Company’s Dividend Policy. The capital reduction will not increase net assets.

Company Secretariat

[swynemap] 22/10/2023 14:35

My understanding of the capital reduction like others have mentioned is that it is just an accountancy change and there is no further capital available.

When new shares are sold to the market by Reach anything above the nominal share price of 10p is put into the share premium account. This money is essentially ring fenced as non-distributable reserve and cannot be paid out as dividends. This isn’t usually an issue but Reach have now got accumulated loss of earnings so I believe they can’t pay any further dividends without this capital reduction.

If anything this points towards more statutory losses going forward, they have had negative retained earnings before in 2015 but unlike now the merger reserve (this looks to count as a distributable reserve) exceeded this amount and they must have been confident of future statutory profits so they didn’t do anything with the share premium account.

[dougmachin] 22/10/2023 10:42

ali - Because I (we) have no real idea if it is promising or not.

600 million sounds like it could be enormously promising.

But it could just be an accounting "fudge" and not promising at all.

For such a large amount, knowing how this will affect the company's cash flow (in particular) would be very useful info to have. RCH has gone off a lot of PIs (and maybe institutions) radars, so getting info could help with a well-timed top-up purchase!

I've emailed the company, as the RNS invited shareholders to do so, asking for some flesh (clarification) to be added to the RNS about this 600 million.

The RNS states "Answers of which will be posted on the Company's website as soon as practicable, and no later than Wednesday, 8 November 2023."

I will check the website in early November.

[ali47fish] 22/10/2023 09:47

why only almost?

[john09] 22/10/2023 05:37

Yep we tried to discuss that on the day it was announced. It’s twice the current market cap in itself . One poster suggested it was a technical thing. Can they use if to pay off the pension or to pay the dividends . No idea

Share price didn’t really react unfortunately thats all I know !

[dougmachin] 22/10/2023 00:49

But what is the 600 million announcement all about?

"The reserve arising on the Capital Reduction would be credited to the profit and loss account of the Company to create distributable reserves."

"distributable reserves".

Almost sounds promising.

[john09] 20/10/2023 15:35

No point holding equities. Everything just drops 3% each day. Slow death is sometimes worse

[john09] 20/10/2023 15:23

The best indication of how fuct things are rn is arm holdings perfomance

Im heavily in cash rn letting things drop. Illiquid stuff looks a bit fuct to me

Reach has support

[john09] 20/10/2023 13:02

That’s the number Simmsc .

[simmsc] 20/10/2023 12:07

Chart technically we are bang on an up-trending support line (that started in about July) and the RSI is bordering on oversold territory. Hopefully we will bounce here and continue the uptrend (barring any fundamental / economic bad news / or bad market headwinds).

[simmsc] 20/10/2023 11:59

Non-cash item?

[john09] 18/10/2023 14:39

The Lebanese are attacking the US embassy

Hold on to your hat folks