- Theatre and film advertising group Reach4entertainment Enterprises said it was reducing employee costs among other mitigating measures to combat a slump in demand caused by Covid-19.

The company said the sudden closure of all live venues on Broadway and in Londons' West End in the past week meant it expected a material reduction in trading from March onwards.

'It is difficult to accurately forecast the extent to which Covid-19 will impact trading and financial performance at this time, however the company must prepare for a material reduction to market expectations for 2020,' it said.

Other mitigating measures included a freeze on all M&A activity and capital expenditure, a freeze on administration costs if not immediately necessary and 'very tight' management of working capital.

Reach4Entertainment said it was in close communication with is lending facility provider, PNC Business Credit, regarding its existing facility.

It had £2.75m cas at 31 December and had accessed additional cash resources through a facility allowing it to meet working capital requirements over the short to medium term.

'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,' the company said.

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