(Alliance News) - Media company Reach4Entertainment Enterprises PLC on Friday said it expects "material reductions in trading" after theatre venues in Broadway, New York and the West End, London were closed due to the Covid-19 pandemic.
Reach4Entertainment, which during the two months ending February had a 30% annual like-for-like sales hike, said it is difficult "to accurately forecast the extent to which Covid-19 will impact trading and financial performance".
"However the company must prepare for a material reduction to market expectations for 2020," the firm added.
Reach4Entertainment has frozen all merger and acquisition activity, as well as capital expenditure.
All non-essential administration costs have also been frozen, and the company said it has reduced employee, director and non-executive director costs.
Reach4Entertainment said: "Management are in close communication with the company's US owned asset based lending facility provider, PNC Business Credit, regarding its existing facility."
At December 31, the company had net cash of GBP2.8 million and Reach4Entertainment said on Friday that it has "has accessed additional cash resources" through the PNC loan facility.
Reach4Entertainment added: "The board is closely monitoring the company's working capital headroom through this difficult period and continues to plan for multiple scenarios and explore various ways to mitigate the impact of reduced activity for a potentially extended period of time."
Shares in the company climbed 8.9% to 0.24 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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