Investor Presentation reach4entertainment enterprises plc Oct 2016 - - PowerPoint PPT Presentation
Investor Presentation reach4entertainment enterprises plc Oct 2016 - - PowerPoint PPT Presentation
Investor Presentation reach4entertainment enterprises plc Oct 2016 Logo Disclaimer The information contained in this confidential document (Presentation) has been prepared by reach4entertainment enterprises plc (the Company) . It
Disclaimer
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Overview: Creativity and growth backed by data and technology
- Transformative refinancing completed in December 2015
- Announced strong H1 2016 trading performance and confirmed
being on track to meet targets for the full year
- Established the foundations for the next stage of development
through: 1. Strengthened senior management team 2. Leveraging the market leadership positions to expand geographically (e.g. Germany) 3. Launching a new data-driven marketing and analytics division 4. Re-organisation of key functions
- The strategies are in place and the Company is looking to raise
between £1.5m to £2.0m to support their implementation
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- 1. Strengthened Senior Management
- David Stoller – Executive Chairman & CEO
- James Charrington – Dewynters CEO
- Jim Edwards – Spot Co CEO
- Michael Hildebrandt – Dewynters Germany CEO
- Linzi Allen – Finance Director
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- 2. Germany
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- Launched Dewynters Germany (“DG”), the world’s third largest commercial
theatre market
- Secured Michael Hildebrandt as CEO, until recently Director of Strategy and
Development at Stage Entertainment Germany
- Establishing an interactive strategy among the three agencies supporting
the award and transfer of individual shows and combining projects (including the new data marketing and analytics initiative) across all three markets
- It is the Board’s view that DG will be the first agency of its kind in Central
Europe to provide creative, consultancy, and experiential events with two key service models:
- Strategic and commercial support for brands in the entertainment and
leisure industry
- Event creation for major brands looking for entertainment-driven
solutions to marketing challenges
- Based in Hamburg, the home of theatre in Germany, it will be asset light
and focus initially on strategic advice
- £500-600k of investment capital required to support the development of
DG
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- 3. Data-Driven Marketing & Analytics Division (under Jampot)
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- Objective is to assist our clients to sell more tickets, at a higher yield, with a
lower cost. This can be rolled out to other diverse clients
- Strong background in data-driven marketing (significantly enhanced by the
acquisition of Jampot)
- Improvements in Application program interface (API) technology now enables
r4e to analyse the effectiveness of its advertising campaigns
- r4e has natural access to a unique data set relating to:
- Ticketing
- Demand
- Historic pricing
- Capitalising on Jampot’s experience of data analysis to build its own suite
- f data analytic tools and methodologies
- Early mover advantage, opportunity to build data model for London and
New York simultaneously
- Approximately £500-600k required to capitalise new data analytics division and
launching by spring 2017
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- 4. Re-organisation of key functions
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- Re-aligning key functions to accelerate adoption of data-driven
marketing approach
- Orienting all services currently delivered from the point of view of
the end customer experience
- Leveraging specific current services and assets, including design
and digital media buying, and analytics to support and enhance the economics of geographical expansion, starting with Germany
- Consolidating and redesigning office floor space – creating an
- pen, dynamic environment promoting collaboration and speed
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H1 Results - Highlights
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- Completed a significant restructuring of the business including a £4
million equity raise in December 2015
- Total borrowings reduced by £11 million to £4.6 million (30 June
2015: £15.6 million)
- New asset based loan facility with PNC of up to £8.5m, has a
quarterly covenant test (previously annual) and as anticipated seasonal revenue fluctuations has meant a covenant breach in Q3 2016 – PNC have acknowledged the breach
- Strong performance from SpotCo on the back of US shows investing
in advance of the Tony Awards in June 2016
- Return to form for Newman Displays which has benefited from
bringing key services in-house
- Consistent performance from Dewynters in a challenging market
place
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Half Year Results to 30 June 2016
(£’000s) Six months ended 30 June 2016 Six months ended 30 June 2015 Year ended 31 December 2015 Revenue 48,963 42,496 85,849 Gross Profit 11,532 9,696 20,165 Administrative expenses (10,517) (9,369) (14,973) EBITDA* 1,369 867 1,843 Operating profit/(loss) 1,015 327 5,192 Net finance costs (181) (339) (714) Profit / (loss) before tax 834 52 4,539 Taxation (523) (320) (273) Profit / (loss) for the period 311 (268) 4,266 Profit / (loss) per share 0.07 (0.36) 4.01 *Before exceptional administrative items
Consolidated income statement (summary)
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Half Year Results to 30 June 2016
(£’000s) 30 June 2016 30 June 2015 31 December 2015 Non-Current Assets 13,298 13,124 12,489 Cash and cash equivalents 522 2,511 1,160 Trade and other receivables 12,166 7,677 12,906 Other current assets 551 470 498 Total current assets 13,374 10,941 14,716 Total assets 26,672 24,065 27,205 Total current liabilities (19,459) (13,070) (20,711) Total liabilities (23,272) (30,109) (24,398) Net (liabilities)/assets 3,400 (6,044) 2,807
Consolidated balance sheet (summary)
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Commercial Theatre remains a growth market
- r4e the clear market leader in two growth markets
- Positive trends in both key territories – London and New York
- Expansion into Germany will establish commanding presence in the three largest
commercial theatre markets in the world
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250 260 270 280 290 300 310 380 430 480 530 580 630 680 2010 2011 2012 2013 2014 2015
- No. of New Productions
Gross Box Offi ce Revenue - £m
Gross Box Office Revenue and New Show Openings - London
Source: The Society of London Theatre Box Office 2015
Gross Box Office Revenue
- No. of New Productions
34 36 38 40 42 44 46 48 900 1000 1100 1200 1300 1400 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
- No. of New Productions
Gross Box Offi ce Revenue - £m
Gross Box Office Revenue and New Show Openings - Broadway
Source: www.broadwayleague.com (Official website of the Broadway theatre industry)
Gross Box Office Revenue
- No. of New Productions
Summary
- Leveraging a stable, cash generative business - in a proven resilient
market sector – to drive growth
- Adding to its two market leading positions in New York and London
with the launch of DG in the world’s third largest commercial theatre market
- Underpinning current market leading positions and driving future
growth with new data-driven marketing and analytics division
- The stage is set for driving growth
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Appendix
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Shareholders
Summary Shares in issue 479.56m Market Capitalisation
- c. £7m
Shareholder overview Major Shareholders Amount (m) Holding % Nigel Wray 124.9 26.04% Gate Ventures plc 91.15 19.01% Herald Investment Management 67.32 14.04% Stoller Family Partners LLP 23.93 4.99% Stephen Hemsley 17.5 3.65%
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Group Financial Summary
- Profit metrics highlight benefit of restructuring action that has
taken place over last few years
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New York Operations – SpotCo
- Market leader on Broadway
- 2015 revenues £54.6m
- In 2015 SpotCo was involved in the launch of 22
theatre shows on Broadway and 14 more off Broadway
- All competitive category Tony Awards won in the
2016 season were clients of SpotCo
- Current shows include Hamilton, Cats, Chicago,
Something Rotten, Book of Mormon and School of Rock
- Institutional clients include Lincoln Centre Theatre,
the Roundabout Theatre and Cirque du Soleil
* Adjusted EBITDA is EBITDA before exceptional items
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43071 34011 39380 51827 54610 33557 10,000 20,000 30,000 40,000 50,000 60,000 2011 2012 2013 2014 2015 H1 2016 £'000
SpotCo Revenue
752 481 1123 2286 1,218 1,282 500 1,000 1,500 2,000 2,500 2011 2012 2013 2014 2015 H1 2016 £,000
SpotCo Adjusted EBITDA
London Operations – Dewynters
- Market leader in London, incorporated in 1924
- Services include: marketing, design, advertising,
promotions, and digital media
- 2015 revenues £27.5m
- In 2015 Dewynters supported 5,295 performances
seen by approximately 6 million people including many of the major musicals running in London
- Current shows include Les Miserables, Wicked,
Charlie and the Chocolate Factory and the Lion King. Recent wins include 42nd Street, Bat out of Hell and Waitress.
- Other non-West End related work includes ATP
World Tour, BFI Film Festival and the National Television Awards
* Adjusted EBITDA is EBITDA before exceptional items
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28703 29014 32299 27600 27496 13467 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2011 2012 2013 2014 2015 H1 2016 £,000
Dewyners Revenue
- 82
754 787 458 846 201
- 200
- 100
100 200 300 400 500 600 700 800 900 2011 2012 2013 2014 2015 H1 2016 £,000
Dewynters Adjusted EBITDA
London Operations – Newman Displays
* Adjusted EBITDA is EBITDA before exceptional items
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- One of the UK's leading large scale
- utdoor signage, front of house, display
and installation companies
- 2015 revenues £3.5m
- Clients include major West End theatre
productions, leading film companies, cinemas and major global events
4042 4205 3704 3570 3512 1939 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2011 2012 2013 2014 2015 H1 2016 £,000
Newman Revenue
398 611 466 223 161 216 100 200 300 400 500 600 700 2011 2012 2013 2014 2015 H1 2016 £,000
Newman Adjusted EBITDA