Reach4entertainment Ente... Share Discussion Threads

[deanroberthunt] 14/11/2014 08:31

One Word.........Underwhelming.

[kocinski7] 14/11/2014 08:29

SpotCo is where the profit margin lies and it's good to see it's performing well

[stegrego] 14/11/2014 08:16

Ummmm trading inline..... Pe of 3...... And it's off 10 percent.....!?!?!?

[jakleeds] 10/11/2014 07:20

You were right, Mortimer.

[mortimer7] 07/11/2014 14:22

The 6 large buys today all seems to be for the same value, ie £5000.
Wonder if it's one person accumulating?

[jakleeds] 07/11/2014 14:04

Fingers crossed. Trading update is imminent too.

[rumbers2] 07/11/2014 12:03

sp straight back up to MA200. We now commence on a new trend of higher highs and higher lows to bring us all good cheer in time for Xmas.

[mortimer7] 07/11/2014 11:40

Some activity this morning. 3 x £5k ish buys, around 300k shares.

[salonie] 30/10/2014 18:39

REACH4ENTERTAINMENT ENTERPRISES (R4E)
EQUITY RESEARCH
Allenby Capital
[e-mail]
[phone]
www.allenbycapital.com
CORPORATE
Current price 5.9p
Sector Consumer Cyclical
Code (R4E)
Listing AIM
SHARE DATA
Market cap £4.4m
Shares in issue (m) 74.9m
52 weeks High Low
8.5p 2.5p
Financial year end 31 December
Source: Company Data, Allenby Capital
KEY SHAREHOLDERS
Stoller Family Partners 25.27%
Herald Inv Mgmt 9.78%
Roy Nominees 8.01%
Webb Capital AM 6.76%
JM Finn Nominees 5.39%
Direct Investing Nominees 4.42%
Source: Company Data (13/03/14)
SHARE PERFORMANCE
1m 3m 12m — . R4E +10% -25% +39%
Source: Fidessa, Allenby Capital
0p
2p
4p
6p
8p
10p
Mar Jun Sep Dec Mar
  Profits recover far faster than forecast reach4entertainment “r4e” has just announced far higher profits for 2013 than expected. This imparts confidence that management plans aimed at profit recovery, post its 2012 strategic review, are beginning to deliver. Further profit recovery is expected in the current year. r4e is the leading s pecialist in the promotions’ markets in both New York and London. These markets are likely to remain buoyant over the next few years, and this bodes well for r4e. The share price has begun to respond but stills lags far behind historic levels. In our view, the shares are undervalued by at least 50%. Buy – Strong growth last year. Revenues rose by 11% in 2013, operating profits by 56%, pre-tax profits by 83% and EPS by 80%. Free cash flow increased seven-fold. Net debt remained high at £12.9m having absorbed costs of £2.2m for deferred consideration and office relocation. – 2014 forecasts trimmed. Despite the good results just posted, we have shaved our pre-tax profit forecast for the current year from £1.08m to £0.95m. For 2015, we have reduced our forecast from £1.36m to £1.15m. This reduction is due to an expectation that r4e’s New York clients may not be able to repeat the exceptional commercial success they enjoyed last year and by the uncertainty expected from a number of imminent West End closures. r4e aims to replace this income by securing work on some of the new shows expected to open during 2014. Even after reducing our forecasts, we are still expecting pre-tax profits to rise by 13% in 2014. – Broadway and the West End expected to strengthen further. Both London and New York enjoyed record box office receipts last year and all the signs are that receipts will rise further over the next few years. This should provide greater confidence to the financiers who fund new theatrical openings. – The share price has further to go. With buoyant markets in the West End and on Broadway, the way is clear for r4e to continue its profit recovery programme. We are forecasting compound growth in pre-tax profits of 17% per annum through to 2016. An outlook which we believe justifies a share price increase of at least 50%.
Year

[mortimer7] 29/10/2014 10:27

Woken up! 5 buys, 120k volume, share price +12.5%.

[tullynessle] 29/10/2014 10:21

Hopefully a Trading Update will be issued within the next four weeks.

In 2013 a TU was released on November 25.

[salonie] 29/10/2014 10:15

Good move up, hopefully a re-rating underway!

[rumbers2] 09/10/2014 16:34

Looks like Webb did reduce further. Their new September update shows 4.49% of their holding in R4E. Was previously 6.17% in August.

hxxp://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ALFP9&univ=O

ps. i thought those three quarter million trades were buys today. for last two days 4.5p to buy, yet 4.6p to sell. Strange.

[jakleeds] 09/10/2014 15:25

Markets in a state, and someone has offloaded a million and a half of these in the last few days. If it's Webb, he is nearly done. Good riddance.

[stewy_18] 03/10/2014 06:52

If they could sell off part of the company that would be a great compromise. Kocinski7, those are good questions, why don't you ping the company an email?

[troutisbackin] 02/10/2014 20:38

O/t may be of interest. No advice intended, DYOR

CBUY

After hours huge deal announced, placing at 18% Premium to today's price (yes you read that correctly - big premium

Roll out ahead of schedule in Asia

2 deals announced this week

Intellysis Buy Recommendation saying very undervalued, re-rating due current value 118p and this will be upgraded

The next ALibaba

Market Value a paltry £41m.

CEO expects £50m revenue within 2 yrs With profit margin over 90% yes no mistake 90%

A clear potential 10 multi bagger at least

This could soar tomorrow imo

[stegrego] 02/10/2014 15:15

Ummm debt is only high in relation to market cap as the shareprice is so low!

[kocinski7] 02/10/2014 14:21

Another question I have is, trading year 2006 pre-recession, the company was running PBT at 13% of revenue. Is this a realistic return to expect in the next 5 years assuming the marketing industry is still not back to full health?

[kocinski7] 02/10/2014 14:12

Does anyone have a website to recommend that gives more visability on SpotCo's performance? They had a 47% increase in revenue and yet no RNS during that trading period to highlight that success with contract wins etc. what is the reason behind the 47% increase? Is there room for more growth that again is not being communicated by R4E?

[deanroberthunt] 02/10/2014 12:47

debt is 5x mcap....just a non starter

[stewy_18] 02/10/2014 12:47

This share needed a raging bull market to occur. If we were in a bull market with those interim results, we would be nearer 10 pence. That would enable them to get away a blockbuster rights issue and pay down that debt. The debt is certainly serviceable for now, but the bull market needed to continue for the plan to work. Alas we hit a brick wall in April and the markets looks weak. It was always a high risk investment and it should do well if the finals are anything like the interims. But getting rid of the debt is not that easy for a £5 million mkt cap company. They have done a good job restructuring the debt so the annual payments are reduced. We will hopefully see them reducing costs also, so it will be interesting to see the PTP figure the the finals.

I would really like to see them improve their margins. I'm giving this investment 6 more months. I think the finals will give a much clearer indication of where they are at with their strategy and how they are planning to reduce this debt.

[tullynessle] 02/10/2014 12:29

A sale of one of their "less core" businesses could facilitate a re-rating.

Perhaps Newman Displays?

The assets are relatively unique, (in terms of location), and could be worth more to a national / international entity more focused on advertising through that medium.

[deanroberthunt] 02/10/2014 12:03

going naywhere until they get that festering pustule of debt sorted.

[tullynessle] 01/10/2014 16:59

Allenby Research note for Reach4Entertainment is available at the right side/ bottom of the page, (see link), at 15 SEPT 2014 - R4E INTERIMS.

[you have to provide email address to obtain the report]





ALLENBY CAPITAL - Research