Reach4Entertainment posts full-year losses following theatre closures

27th May 2015 14:39

Theatre, film and live entertainment group Reach4Entertainment saw its profits swing into losses in 2014 due to discussions with its bank and third parties regarding the restructure or replacement of its current bank loan.The group said a review of the value of the goodwill has been undertaken and an impairment was required in the 2014 accounts, resulting in an operating loss of £4.3m.The profits before tax of £0.31m posted in 2013 swung to losses of £5.1m in 2014, but revenues rose 10% to £83.3m.Despite a good performance in its SpotCo theatre in the US, the UK theatre division Dewynters faced more challenging conditions due to a number of show closures in the West End.Pre-tax profits in Spotco jumped 305% due to a number of one-off projects, while Dewynters posted an impairment of goodwill of £6.43m.Looking ahead, executive chairman David Stoller said: "The business remains well placed and we are continuing positive discussions with our main lender to create a future financial base which will support our ability to maintain and extend our position as market leaders in promoting theatre, film and live entertainment events."Shares fell 8.16% to 1.12p on Wednesday at 14:48.