R4E.L Share News (R4E)

(ShareCast News) - Media and entertainment company Reach4Entertainment reported an increase in first-half profit as it sounded an upbeat note on its prospects for the year, despite highlighting a more challenging second half.For the six months to the end of June, pre-tax profit rose to £0.8m from £0.05m on revenue of £49m, up 15% from the first half of 2015. Reach4Entertainment said it benefited from a reduction in finance costs to £0.2m from £0.3m the previous year, reflecting the lower level of borrowings.As a result, earnings per share came in at 0.07p compared to a loss of 0.36p the year before.Total borrowings fell to £4.6m from £15.6m at the end of June last year, as the company achieved a significant restructuring of the business which included a £4m equity raising completed in December 2015.Executive chairman David Stoller said: "With significant investment going into shows in the first half of this year, particularly in the US, we are pleased to report a strong first six months of the business. We also benefited from an improved performance from Newmans, which was most recently involved in the Harry Potter launch. "The second half is expected to be more challenging, with fewer shows being launched, but the business is well positioned following 2015's transformative changes and we remain on track to meet our targets for the year ahead. The outlook for 2017 is strong, including promising investment opportunities to support our strategic growth objectives."At 1500 BST, the shares were down 14% to 1.82p.