(Alliance News) - Reach4Entertainment Enterprises PLC said Tuesday its 2019 adjusted earnings and revenue are likely to beat market expectations "significantly" after a particularly strong result from its Sold Out acquisition.
Shares in Reach4 were up 16% at 1.01 pence in London in morning trading.
Having been acquired by marketing firm Reach4 in March 2019, Sold Out's revenue was "above management's expectations". Further, Reach4's "turnaround strategy" - a strategic overhaul aimed at improving profitability and performance - was also a contributor to its better than expected 2019 result.
Consequently, Reach4 said it "expects to report revenue and profit significantly ahead of market expectations" for 2019.
Spot & Co of Manhattan Inc - Reach4's New York live events branding, design and marketing agency operations - won 20 new shows in the year and its 2020 pipeline is "strong".
London-based agency Dewynters also scored wins like Joseph & the Amazing Technicolour Dreamcoat and Jesus Christ Superstar after a slow first half and the closing of six major London theatre shows in late 2018 and early 2019.
Overall, Reach4 ended 2019 with net cash totalling GBP2.8 million.
In 2020, Reach4 expects to be able to further diversify its client base, as well as building its market share.
Chief Executive Marc Boyan said: "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. 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."
By Anna Farley; annafarley@alliancenews.com
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