Reach4entertainment Ente... Share Discussion Threads

[jakleeds] 10/4/2014 11:40

As are the majority of the country's businesses and homeowners. How many of them have managed to secure a 2pc reduction in their cost of borrowing?

Agreed, still risky but not as risky as it was. The turnaround has been pretty impressive in the last few years, and the Chairman says he's as confident in the company's future as he has ever been.

Stage17 goes live later this month, and Spotco has started the year strongly.

Need the directors to put their hands in their pockets now, buy some shares to get the price moving and get a placing or RI away at around 20p plus, to wipe the debt out.

Why doesn't Stoller just buy Webb's shares off him, if he's 'as confident as ever'. It's not like he can't afford it.

[deanroberthunt] 10/4/2014 11:25

I agree though, they are very exposed to even a small increase in rate rise.

[kocinski7] 10/4/2014 10:41

Looking at the figures and statement of costs not increasing at head office level a turnover of £80m will generate a PBT of £1.1m including the £0.2m saving on refinancing.The current long term debt is being paid off at £1.6m per year and therefore currently will be paid off in 10 years. This doesn't take into account interest rate rises, inflation of costs or price inflation passed onto the customers.Turnover is the key friend to this company. They have found their break even point and every million more will generate £150k PBT that can go towards paying their debt off. The more paid off, the less financing costs and a much better bottom line.

[jakleeds] 10/4/2014 10:37

Effectively they are 2 percentage points better off as the old deal was due to go to 5pc above LIBOR from the 26th of this month.

[stegrego] 10/4/2014 10:26

Considering they have just lost a whole percentage point on their loan and considering they made a reasonable profit this year on the previous rate, the company would have to have at least 3 percent rise in rates before in was near to loss territory.

And I would suggest that the rest of the country would be in the same boat....

[barnetpeter] 10/4/2014 10:20

The accounts show net assets of exactly three pounds ...debt of nearly 16 million and net finance costs of 750,000....

Great company.....lots of business....but just one bad year or hike in rates and its likely gone.

It may survive but you wont find many riskier punts around. I guess thats why Webb wants out....the risk profile is just too high. If they could sell off some stuff.....but I guess its not a sellers mkt.

[pj 1] 10/4/2014 10:04

Stegrego 10 Apr'14 - 09:31 - 314 of 318 0 0

What was the forecast for 2013?
------------------------------------------------------------
hmm, good point, must have been my own calculations so maybe they havn't missed :-//

[tullynessle] 10/4/2014 09:52

Re Post 316.

For example Newman Displays provides a broad scope of services in respect of sinage and display needs.

I remember that in the 70's I worked in Central London and noted the Billboards with the "Newman" name along the bottom.

Apart from the range of services that Newman provide, it would be interesting to identify the value of [niche] assets held within that company.

[I have no idea if the Billboard sites are owned by, or contracted to Newman, (or indeed if they still exist), if they do then I suspect that the value could be significant] - perhaps worth researching.

All IMO




NEWMAN DISPLAYS

What We Do

Whatever your signage and displays needs, Newman Displays has the experience and expertise to create a dynamic, innovative and cost effective solution. Our dedicated Account Managers can guide you through your project from concept to completion – encompassing every style of signage from the smallest wall plaque to the most complex refurbishment, exhibition or front of house display. Projects, both large and small receive the same high level of dedication to give you the complete service.

- See more at:


Description of each division within Newman follows..........

[jakleeds] 10/4/2014 09:52

Indeed, my thoughts exactly. Spotco alone could be worth enough to make a big dent in the debt.

[tullynessle] 10/4/2014 09:43

According to the website, R4E primarily comprises of four companies

It would be interesting to identify the worth of each of these companies and the impact on the Group if any one of the entities were sold.




Reach4Entertainment website - Our Companies

[tullynessle] 10/4/2014 09:33

Re Post 311

"Why are margins so thin?"

It is interesting to note that a significant niche market, (Theatreland / Entertainment industry), requires £75 million pounds worth of service support but appears unwilling to pay compensation for such services at rates which deliver a reasonable return to the provider.

IMO only

[stegrego] 10/4/2014 09:31

What was the forecast for 2013?

I still think they can easily do well over 1p this year so it's on a pe of 5.

And people are selling.....

[pj 1] 10/4/2014 09:19

Any Accountants about

The eps doesn't make sense, even allowing for the Tax differential eps would only =0.6p, which is below predictions?

[greenroom78] 10/4/2014 09:13

I sold on the whistle this morning.

Nice improvements to EBITDA but tax had more of an effect of EPS than I expected. Also with Webb still forming an overhang I've opted to take the rest of mine off the table for now.

GLA, I'll keep a watchful eye out and may be back at some point.

[tullynessle] 10/4/2014 09:06

Why are margins so thin?

[sundance 13] 10/4/2014 08:58

Problem we have here is the big seller or perception of a big seller. Every time this rises towards 7p, people bail out as they know now someone big is selling around that price. So we have effectively a price cap of 7p on this at present.If Webb is selling this could go on for sometime given how many shares he has.

[barnetpeter] 10/4/2014 08:57

Have been in and out of this stock; not that impressed by results. The debt is very large and the margins are thin. There is a clear overhang of stock and difficult to see how they could raise more cash.

The interest deal was ok but any rise in rates will tip the company into a loss....and I am struggling to see how it can ever get out of this debt situation. Rates are so low but we know that cant last for ever....

[jakleeds] 10/4/2014 08:04

Massive improvement, compared to H1.

H1: Revenue £35 mill. Full Year. £75.8 mill

EBITDA. £666,000. £1.9mill

EPS 0.03p 0.54p

[stegrego] 10/4/2014 08:04

Are there any forecasts in the market that are current? I see 1.3p floating about, but don't know if this is still valid.

[deanroberthunt] 10/4/2014 07:55

We are forming a nice bowl though from lows, and we're on the right hand side of the bowl now.

[deanroberthunt] 10/4/2014 07:50

It'll be a chance for Webb fund to sell more into any rise, unfortunately.

[deanroberthunt] 10/4/2014 07:49

if they could just return 2-3%, say £2m pbt, with a per of 12, then it would be valued circa £25m.....thats 6x current.

[deanroberthunt] 10/4/2014 07:47

aye, still a long way to go.....300k profit ain't v. good on a £76m t/o....but hey, that's why it's priced at £4m mcap......combined with the debt.....but if they can slowly reduce the debt and improve profitabilty, then it could be a good stock....but still at this point only a speculative punt.

[jakleeds] 10/4/2014 07:40

Yep, look solid enough, clearly they've been a little distracted with the office relocation, cost cutting and renegotiating the terms of the debt.

Increased turnover to nearly 76mill and Stoller says they can now focus on growth. Also said:

"I am more confident about the Group's future now than at any time since I became involved with r4e and believe that we will continue to make progress throughout this year and beyond."

Let's see what the market makes of it all. Hopefully director buys and tips soon.

[deanroberthunt] 10/4/2014 07:35

Pretty solid results, pbt nearly doubled.....fwd statement very positive from top man.....