Reach4entertainment in bank talks after warning on 2015 results

Theatrical and film marketing group Reach4entertainment (r4e) has warned that it has begun discussions with its bank and warned that results in 2015 will be lower than in 2014.

The AIM-listed company, which is currently funded by a significant bank loan, said performance in 2014 had been strong and in line with expectations.

But it warned that group performance had been largely thanks to growth at its Manhattan-based theatre and live entertainment business, SpotCo, which had been mostly based on "a number of significant one-off projects which were not likely to be repeated in 2015".

As such, r4e, which owns a collection of what it calls the "biggest and brightest" theatrical, film and live entertainment agencies in the US and UK, had felt it necessary to begin talks with its bank.

Directors confirmed they had already begun discussions with the company's bank and third parties about a potential restructuring or replacement of the loan.

R4e, which changed its name from Pivot Entertainment in 2012, emphasised that it was not in breach of its bank covenants and had made all its required payments on time, it remained hopeful of a successful outcome.