Annual Report, AGM and Proposed Capital Reduction

3 June 2019

reach4entertainment enterprises plc

('r4e' the 'Group' or the 'Company')

Posting of Annual Report, Notice of AGM and Proposed Capital Reduction

reach4entertainment enterprises plc (AIM: R4E), the entertainment marketing communications group announces that its Annual Report and Accounts for the year ended 31 December 2018 and Notice of the Annual General Meeting, containing full details of the capital reduction described below, have been sent to shareholders and are available on the Company's website at www.r4e.com.

The Company's Annual General Meeting will be held at 10.00 a.m. on Friday 28 June 2019 at Wellington House, 125 Strand, London WC2R 0AP. 

Proposed Capital Reduction

The Notice of the Annual General Meeting includes a proposal for a capital reduction which requires shareholder approval. The votes of the Shareholders will be added together at the Annual General Meeting and the capital reduction resolution, which will be proposed a special resolution, requires a majority in favour of at least 75% of those Shareholders attending and voting in person or by proxy in order to be passed.

Background to, and reasons for, the Capital Reduction

Since the leadership changes in the Company at the end of 2017, the Group's operational and financial performance has seen significant improvement. The Group has become more profitable and management's initiatives have led to growth both organically and through acquisition. Current market expectation for the year ended December 2019 forecasts an improved performance on 2018 and the Directors believe that the Group is well positioned for future sustained growth and development.

The Company currently has negative distributable reserves and is, therefore, prohibited under the Companies Act from making distributions to its Shareholders, including the payment of dividends. In light of the Group's prospects and current strong financial position, the Directors believe it is now an appropriate time to undertake the capital reduction and create distributable reserves which would enable the payment of dividends in the future, subject to the continuing satisfactory financial performance of the Group.

The completion of the capital reduction and reduction of nominal share value will not affect the rights attaching to the ordinary shares and will not result in any change to the number of ordinary shares in issue.

The capital reduction, if approved and made effective, will eliminate the retained losses resulting in the creation of distributable reserves of £3,950,327.

Enquiries:

Notes to Editors

reach4entertainment enterprises plc ("r4e") operates a collection of theatrical, film and live entertainment marketing, PR, advertising and display agencies, across the world. The Company uses its extensive experience in the live entertainments space to create value through investing in innovative and established agencies that provide communications services to a range of clients involved with theatre, film, concerts and more.

For further information on r4e you are invited to visit the Company's website at www.r4e.com.

Spot and Company of Manhattan, INC.

A global leading full-service arts and live entertainment advertising and marketing agency. In an ever-changing media landscape, it stays ahead of the curve with a mix of bold positioning through interactive, broadcast, environmental and print campaigns.

https://www.spotnyc.com

Dewynters Limited

A leading independent arts, events and live entertainment marketing specialist. The agency's work in theatre, museums, attractions, sport and music is seen right across the globe.

http://www.dewynters.com

Newman Displays Limited

The UK's leading large-scale outdoor signage, front of house, marquee display and installation company. Clients include major West End theatre productions, leading film companies, cinemas and major global events.

http://www.newman-displays.com

Wake the Bear Limited

A marketing communications agency that supports businesses to invent, reposition and regenerate their brands in order to grow. The agency carries out brand strategy, communications planning and end-to-end activation.

http://wakethebear.co.uk

Story House PR Limited

A new public relations agency for the theatre and live entertainment industries, operating in the UK and internationally. The agency crafts engaging campaigns for audiences, driven by strategy: the right channel, at the right time, with the right message. Fully integrating PR with paid media and social, ensuring all elements of a campaign are working together, Story House collaborates with its clients to ensure its work is dedicated to realising their ambitions.

www.storyhousepr.co.uk 

Buzz 16 Productions

Buzz 16 is an independent production company, which creates both short and long form sports orientated content. The Company was co-founded by former Manchester United player and respected broadcaster, Gary Neville, along with former Sky Sports Premier League producer, Scott Melvin.

https://buzz16.uk

Sold Out

Sold Out is an independent full service advertising agency, specialising in arts and entertainment for over 25 years.

https://soldout.london