R4E.L Regulatory News (R4E)

23 May 2012

reach4entertainment enterprises plc

formerly

Pivot Entertainment Group plc

("r4e" or "the Group" or "the Company")

PRELIMINARY UNAUDITED RESULTS FOR THE 13 MONTH PERIOD ENDED

31 DECEMBER 2011

reach4entertainment enterprises plc (AIM: R4E), the transatlantic media and entertainment company, is pleased to announce unaudited results for the 13 month period ended 31 December 2011.

Financial Highlights (for 13 month period)

·; Revenue from continuing operations of £78,198,000 (year ended 30 November 2010: £71,403,000)

·; Gross profit from continuing operations of £18,394,000 (year ended 30 November 2010: £17,051,000)

·; Group Net Loss before taxation of £2,924,000 down from £7,812,000 in year ended 30 November 2010

Trading and Strategic Highlights

·; The Group has continued its restructuring programme to focus on its core business units: London and New York based theatre marketing businesses Spot & Company of Manhattan Inc, ("SpotCo"), Dewynters Ltd ("Dewynters"), Newman Displays Ltd ("Newmans") and Dewynters Advertising Inc. ("DAI")

·; By focusing on these businesses, the aim is to cement r4e's position as a highly-focused, transatlantic media and entertainment company

·; The restructuring initiatives undertaken during the period included the sale of non-core business assets and strategic investment totalling £2.5 million by Pivot Entertainment LLC

·; The Group successfully raised £4.0 million via placings in February and March 2011

·; Conclusion and announcement of a new £14.8 million revolving credit facility with Allied Irish Bank in May 2011, achieving a reduction in bank debt from the 2010 year end value of £18.0 million

·; Recomposition of the Board involving the appointments of David Stoller as Executive Chairman and Shirley Stapleton as Finance Director. Appointments of Non-Executive Directors Marcus Yeoman in May 2011 and Richard Ingham in August 2011, following the departure of Jon and Phil Smith. Jeremy Barbera was appointed Chief Executive Officer during December 2010 but has since left the company following the period end in March 2012.

·; The third and final financial performance year for the purposes of calculating the remaining deferred consideration payments due to the vendor of Spotco under the terms of the acquisition agreement dated 8 August 2008 has concluded. The result of the final calculation is to reduce the estimated liability in respect of the total remaining deferred consideration payable by $1.927 million to $4.112 million (approximately £2.672 million). On a related note, the Board announced that it reached agreement with the vendor of Spotco to defer the earn-out payment, which was due to be made on 31 October 2011 to June 2012. The Board is currently in discussions with the vendor regarding the timing and nature of the settlement of this liability.This payment will constitute the final payment of deferred consideration for Spotco.

Post Period Events

·; In addition to continuing to work with its normal base of clients in theatre and film, the Group has continued to develop new, high profile client relationships in events and productions. These new client relationships have begun to impact revenue since period end, signalling a strong beginning for the new financial year.

·; The Group has launched several promising new initiatives in licensing, theatrical events, promotional events and new talent sponsorship, which represent significant opportunities for value creation and expansion.

·; The Company announced a change of name from Pivot Entertainment Group plc to reach4entertainment enterprises plc ("r4e") signalling a change in the strategy and management of the Group, featuring a powerful spirit of shared enterprise among the Group's transatlantic operating companies

·; Following the departure of Chief Executive, Jeremy Barbera from in March 2012, David Stoller assumed the responsibilities of Chief Executive in addition to his existing role of Executive Chairman for an interim period.

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David Stoller, Executive Chairman and acting Chief Executive of r4e, comments:

"2011 was a period of significant restructuring and reshaping. That work is nearing completion. The focus now is on driving the growth of r4e's core arts and entertainment businesses: Spotco, Dewynters, Newmans and DAI; establishing new, high profile relationships in events and productions in London and New York; and leveraging the capabilities of the Group, particularly in the digital space.

"This renewed focus on the Group's strengths and the stripping out of unwanted overheads should result in solid growth in Group EBITDA in 2012. We are delighted that our core business remains strong and we aim to build on the strong foundations in place by developing initiatives in licencing, theatrical events, promotions and new talent sponsorship."

-End-

Enquiries:

reach4entertainment enterprises plc

David Stoller/ Shirley Stapleton Tel: +44 20 79930000

Seymour Pierce Limited

Stewart Dickson/Tom Sheldon (Corporate Finance) Tel: +44 20 71078000

Katie Ratner (Corporate Broking)

XCAP Securities plc

Adrian Kirk / David Lawman (Joint Broker) Tel: +44 20 71017070

Bishopsgate Communications Limited

Nick Rome/Lynne Goulding Tel: +44 20 75623350

r4e@bishopsgatecommunications.com

EXECUTIVE CHAIRMAN'S STATEMENT

I am pleased to report the results of reach4entertainment enterprises plc for the 13 month period ended 31 December 2011.

Following announcement made on 23 January 2012, shareholders will be aware that the accounting period was extended to align the Group's accounting and reporting dates to ones more relevant to the media sector, and to align the reporting dates of the remaining core businesses within the Group following the restructuring and disposals undertaken during 2011.

The Group reports a loss for the 13 month period of £2.92 million, an improvement of £4.89 million against losses of £7.81 million for the year ended 30 November 2010.

The Group has continued its restructuring programme to focus on its core business units: New York based Spot & Company of Manhattan Inc, ("SpotCo"), London based companies Dewynters Ltd ("Dewynters") and Newman Displays Ltd ("Newmans") and the New York based merchandising operations of Dewynters Advertising Inc. ("DAI"). By focusing on these businesses, the aim is to cement r4e's position as a highly-focused, transatlantic media and entertainment company.

The restructuring initiatives undertaken during the period and beyond included the sale of non-core business assets and strategic investment totalling £2.5 million by Pivot Entertainment LLC. In addition the Company successfully raised £4.0 million via placings in February and March 2011 while it also significantly reduced bank debt.

r4e is confident that by focusing on the strengths of its core businesses, and by further stripping out overheads, it will emerge as a more streamlined and dynamic company.

Restructuring Initiatives

Restructuring and divestment initiatives included the sales of non-core businesses (The Finishing Touch (Corporate Events) Ltd, and First Artist Sport Ltd), and a move to start winding up the remaining operation of the Sport division, Promosport SrL, the Italian based football management agency.

Activities directed at restoring the financial and management strength of the Group during this reporting period include:

·; Strategic investment in December 2010 by Pivot Entertainment LLC of $4.0 million (£2.5 million);

·; Share placings in February and March 2011 raising a total of £4.0 million (before expenses);

·; Conclusion and announcement of a new £14.8 million revolving credit facility with Allied Irish Bank in May 2011, achieving a reduction in bank debt from the 2010 year end value of £18.0 million;

·; Recomposition of the Board involving the appointments of David Stoller as Executive Chairman and Shirley Stapleton as Finance Director. Appointments of Non-Executive Directors Marcus Yeoman in May 2011 and Richard Ingham in August 2011, following the departure of Jon and Phil Smith. Jeremy Barbera was appointed Chief Executive Officer during December 2010 but has since left the Company following the period end in March 2012.

Continuing Operations

I will now turn to the performance of the continuing operations.

The Group will retain its focus on the established theatre marketing businesses in London of Dewynters and Newmans and SpotCo, and DAI in New York.

London

The London theatre marketing business of Dewynters continued to build on its established platform of long running and successful shows such as Phantom Of The Opera, Les Miserables, The Lion King, Mamma Mia!, Wicked and We Will Rock You. In addition, new events worked on included the Barclays ATP World Tour Finals at the O2 and several new shows, including Million Dollar Quartet, Wizard of Oz, Betty Blue Eyes, and Ghost: The Musical, together with several plays and other shows of shorter scheduled runs.

For Dewynters, 2011 was a year of investment and consolidation. Whilst this had some impact on short term profitability, it has resulted in a strong platform from which to deliver growth. It has established a solid base and healthy book of new business including West End shows such as Singin' in The Rain, Masterclass, Jackie Mason The Farewell Tour, and the soon to open Top Hat, The Browning Version, What the Butler Saw, Written on The Heart and other clients including the rebranding of the British Film Institute and brand launch of a new theatre, the St James's.

On a like for like basis, Newmans has reported a small decline in revenues over the period and a commensurate decline in operating profits. The business has been impacted by disruption from on-going construction work associated with the redevelopment of Leicester Square which is an important focal point for many of its clients and events. This has led to both a reduction in the number of premieres and events there and is coupled with an increase in costs of delivery for those that are undertaken. Despite these challenges, Newmans continues to deliver many high profile and successful events such as the premiere for Harry Potter and the Deathly Hallows Part II, The London Film Festival and work done at the Cannes Film Festival. To offset these issues Newmans has been exploring development opportunities which have resulted in projects in several new areas involving theatre refurbishment and more work with events companies which are generating positive results.

New York

The New York theatre marketing operations of SpotCo delivered strong growth from its award winning client base during the period. Shows supported by SpotCo included three of the four nominees for the Best Musical Tony Award: Catch Me If You Can, The Scottsboro Boys and Sister Act. Spotco clients also included the Tony Award winner for Best Musical Revival Anything Goes. During the reporting period, SpotCo was hired to provide the advertising for the New York launch of Cirque Du Soleil's Zarkana at Radio City Music Hall and continued to handle the Radio City Christmas Spectacular as well as achieving success with shows such as Baby It's You, Memphis, Book of Mormon and events such as Wintuk and an ongoing relationship with the Manhattan Theater Club. During the period under review, SpotCo continued to grow its Marketing and Promotion department, working on the marketing for the launch of NBC's television production Smash, and growing the number of Broadway shows it produces content for.

The period under review has presented several challenges for DAI arising from the closure of long running shows for which it as provided merchandising services. This has resulted in a decline in both revenue and profitability. New business opportunities continue to be sought, whilst a review of the future of this business will be undertaken.

Post Period Events

In addition to continuing to work with its normal base of clients in theatre and film, the Group has continued to develop new, high profile client relationships in events and productions. These new client relationships have begun to impact revenue since period end, signalling a strong beginning for the new financial year.

In addition the Group has launched several promising new initiatives in licensing, theatrical events, promotional events and new talent sponsorship, which represent significant opportunities for value creation and expansion.

The Company announced a change of name from Pivot Entertainment Group plc to reach4entertainment enterprises plc ("r4e") signalling a change in the strategy and management of the Group, featuring a powerful spirit of shared enterprise among the Group's transatlantic operating companies.

The Group announced the departure of Chief Executive, Jeremy Barbera from the Board with effect from 15 March 2012. From this date David Stoller assumed the responsibility of Chief Executive in addition to his existing role of Executive Chairman for an interim period. On 10 May 2012 Mr Barbera's shareholding of 8,400,000 ordinary shares was transferred to Stoller Family Partners.

Outlook

2011 was a period of significant restructuring and reshaping of the Group. That work is nearing completion, and the focus now is on driving the growth of r4e's core arts and entertainment businesses: Spotco, Dewynters, Newmans and reshaped DAI on conclusion of the business review which is currently underway; establishing new, high profile relationships in events and productions in London and New York; and leveraging the capabilities of the Group, particularly in the digital space. This dedicated division will expand and leverage existing digital and social media capabilities and develop complementary assets and capabilities with the objective of becoming a multi-platform provider of digitally delivered services, products and content.

This renewed focus on the Group's strengths and the stripping out of unwanted overheads should result in solid growth for the company in 2012.

David Stoller

Chairman

23 May 2012

reach4entertainment enterprises plc

UNAUDITED CONSOLIDATED INCOME STATEMENT

for the thirteen month period ended 31 December 2011

BASIS OF PRESENTATION

The above unaudited financial information does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The above figures for the period ended 31 December 2011 are an abridged version of the Company's accounts which will be reported on by the Company's auditors before dispatch to the shareholders and filing with the Registrar of Companies. The preliminary announcement was approved by the Board and authorised for issue on 23 May 2012.

The consolidated financial information has been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Union (EU). The accounting policies applied in the period ended 31 December 2011 are consistent with those applied in the Financial Statements for 2010.

The statutory accounts for the year ended 30 November 2010 have been lodged with the Registrar of Companies. These accounts received an audit report which was unqualified and did not include a statement under section 498(2) or section 498(3) of the Companies Act 2006.

The audit report for the period ended 31 December 2011 is expected to contain the following wording:

"Emphasis of matter

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure set out in the financial statements concerning the group's ability to continue as a going concern. The group incurred a net loss of £2.9m during the thirteen month period ended 31 December 2011 and, at that date, group's total liabilities exceeded its total assets by £1.0m and it had net current liabilities of £3.8m. The group's cash flow forecasts indicate that additional funds need to be raised so that the group can meet the payment of $4.1m due in June 2012 in relation to deferred consideration liabilities. The directors are in negotiations with the vendor seek a deferral of the settlement of the liability until sufficient funds have been raised.

These conditions, along with the other matters explained in the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

SIGNIFICANT ACCOUNTING POLICIES - GOING CONCERN

As at 31 December 2011 the Group had net liabilities of £1.0 million (30 November 2010: £4.4 million net liabilities) and made a loss in the period then ended of £2.9 million (year then ended 30 November 2010: £7.8 million loss).

During the period the Group went through a significant restructuring, including renegotiation of its borrowing facilities, share placements and the disposal of loss making subsidiaries. Details of which are as follows:

·; An agreement was reached in April 2011 to enter into a new £14.8 million revolving credit facility with the lender AIB Group (UK) plc and was approved by shareholders at an EGM on 17 May 2011. Interest is chargeable at LIBOR + 3.5% per annum for the first two years, LIBOR + 4% per annum for the third year and LIBOR + 5% thereafter; the facility matures in May 2015.

·; Share placements totaling £6,570k were made; these proceeds were used for paying down existing debt, payment of overdue deferred consideration and for working capital purposes.

·; The loss making subsidiary The Finishing Touch (Corporate Events) Limited was disposed of on 14 February 2011. Another loss making subsidiary, First Artist Sport was also disposed of on 19 May 2011. Promosport SrL was also placed into liquidation during the period.

In addition, the Directors have prepared and reviewed detailed forecasts which indicate that the Group will have sufficient cash flow to meet its financial obligations as they fall due. The exception to this is further obligations under deferred consideration liabilities. The final amount due of $4.1 million is payable in June 2012 and the Board is currently in discussions with the vendor regarding the timing and nature of the settlement of this liability. The Group expects to seek equity funds during the forthcoming period in order to satisfy this obligation. The Board is confident that these will be concluded in a manner which enables the view of going concern to be applicable.

Whilst the Directors believe that the going concern basis is appropriate, the existence of the deferred consideration liability, the use of estimates in the forecasts and the continuing challenge of the trading environment represents an uncertainty which may cast doubt upon the Group's ability to continue as a going concern and that, therefore, the Group may be unable to discharge its liabilities in the normal course of business.

After making enquiries and considering the uncertainties described above, the Directors have concluded that the Group has adequate resources to continuing trading for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the Group financial statements. The financial statements do not include any adjustments that would result if the Group was unable to continue as a going concern.

reach4entertainment enterprises plc

REMUNERATION REPORT

The Remuneration Committee is responsible for determining and agreeing with the Board the remuneration policy for the Executive Directors and Officers and for approving their remuneration packages and contract terms. The Committee's remit also includes approving the design of performance related pay schemes and share incentive plans, and the remuneration packages of the directors of the subsidiary companies.

Through monitoring the marketplace the Committee seeks to offer remuneration packages which not only reflect current market conditions but are also commensurate with attracting, retaining and motivating executives of quality to ensure the continued growth and success of the Group.

The Executive Directors determine the remuneration of the Non-Executive Directors.

The remuneration of the Directors who served during the period ended 31 December 2011 is shown below:

* Denotes Non-Executive Director

The remuneration of the Directors who served during the year ended 30 November 2010 is shown below:

The above remuneration was paid for the whole year except for William Fitzpatrick who resigned on 18 June 2010 and Julianne Coutts who resigned on 25 June 2010.

* Denotes Non-Executive Director

Details of share options held by Directors are given in note 20.

DIRECTORS' SERVICE CONTRACTS

For all directors at the period end, the terms of their service agreements include, inter alia, that the agreements can be terminated by written notice given by either party at any time.

Further details concerning Directors' emoluments are disclosed in note 6 to the Consolidated Financial information.

On behalf of the Remuneration Committee

Richard Ingham

Non-Executive Director

23 May 2012

reach4entertainment enterprises plc

DIRECTORS' REPORT

DIRECTORS

The following Directors held office during the period:

SUBSTANTIAL SHAREHOLDINGS 

Interests, of 3% or greater, in the share capital of the Company as at 10 May 2012 were as follows:

* Controlled by David Stoller.

CORPORATE GOVERNANCE

The Company is supportive of the principles embodied in the 2010 UK Corporate Governance Code published by the Financial Reporting Council.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR

The Directors who were in office on the date of approval of this financial information have confirmed that, as far as they are aware, there is no relevant audit information of which the auditor is unaware. Each of the directors have confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

POLICY ON PAYMENT OF CREDITORS

The Company does not follow any formal code or standard on payment practice. The Company agrees payment terms with individual suppliers, which vary according to the commercial relationship and the terms of the agreement reached. It is the policy of the Company that whenever possible payments to suppliers are made in accordance with the terms agreed.

Trade creditor days based on creditors at 31 December 2011 were 46 days (30 November 2010:41 days).

POLITICAL AND CHARITABLE CONTRIBUTIONS

During the period Group companies made no contributions to United Kingdom charitable organisations or political organisations (year ended 30 November 2010: £Nil).

DIRECTORS' INDEMNITY

Qualifying third party indemnity provisions (as defined in Section 234 (2) of the Companies Act 2006) are in force for the benefit of the directors.

AUDITOR

Baker Tilly UK Audit LLP has indicated its willingness to continue in office.

By order of the board

Shirley Stapleton

Company Secretary

23 May 2012

reach4entertainment enterprises plc

NOTES for the period ended 31 December 2011(unaudited)

1 BUSINESS AND GEOGRAPHICAL SEGMENTS

Business segments

For management purposes, the Group is currently organised into three operating segments - New York operations, London operations and Head Office. These divisions are the basis on which the Group reports its segment information.

Principal continuing activities are as follows:

New York (NY) - marketing, design, advertising, promotions, digital media services, publishing and merchandising.

London - marketing, design, advertising, promotions, digital media services, publishing and merchandising, signage and fascia displays.

Head Office - finance and administration services for the Group.

* Adjusted EBITDA is before exceptional administrative expenses

*Adjusted EBITDA is before exceptional administrative expenses.

5 EXPENSES BY NATURE AND AUDITOR'S REMUNERATION

13 month period ended 31 December 2011 (unaudited)