StockMarketWire.com - Reach4entertainment has swung to a FY pretax profit of GBP4.5m, from a loss of GBP5.1m, as it reported a strong trading performance with the successful restructuring of the business.

Revenue was ahead at GBP85.9m, from GBP83.3m.

Executive chairman David Stoller said:

"Now that the restructuring of our debt is complete, I am confident that the Company has a solid platform from which to progress in the coming years.

"The focus is now very much on creating long term value for our existing and new shareholders by continuing to maintain our status as a market leader in both London and New York, as well as identifying and executing strategic opportunities to enhance the business."

HIGHLIGHTS: · Sound trading performance combined with the successful re-structuring of the business.



· Adjusted EBITDA of £1.84 million, in-line with market expectations but, as expected, below the exceptional performance of 2014.



· The Company successfully completed an equity placing to raise £4.0 million to support restructuring



· Secured a three-year asset based debt facility of £9.5 million ('New Facility') with PNC Business Credit ('PNC') being made up of a £1 million term loan and a revolving credit facility of up to £8.5 million based on qualifying accounts receivable.



· £9.6 million repayment of its existing £14.8 million loan facility with Allied Irish Bank ('AIB') plus grant of 25 million warrants to AIB. Balance of loan written off.



· Significant reduction in the level of debt means borrowing costs will reduce by approximately 50%.



· Strengthened balance sheet now puts the Company in a stable position from which to maintain its status as a market leader in both London and New York.



· Looking ahead, the Company remains focused on supporting its first class teams across the business in continuing to deliver modern, market leading promotional strategies for theatre, live acts and film.




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