Reach4Entertainment Enterprises PLC – Corporate Update re. Dewynters Germany
reach4entertainment enterprises plc (AIM: R4E), the entertainment, marketing and communications group, announces the following corporate update in relation to Dewynters Germany, the provider of live entertainment marketing services and a wholly owned subsidiary of r4e.
Dewynters Germany was launched under r4e’s previous management team in October 2016. As part of his review of the Group’s global strategy, Marc Boyan CEO of r4e, has taken the decision, to service the German market from Dewynters London, in order to improve efficiencies and drive greater profitability. In the year ended December 2018 Dewynters Germany made a loss before tax of £475,446 which impacted negatively on overall Group profit, as disclosed in the full year results. The net asset position of Dewynters Germany as at 31 December 2018 after removing intercompany balances was £258,278. As part of this restructuring process Dewynters Germany will close.
Since the arrival of the Group’s new management in late 2017, a series of operational changes have been implemented to improve performance and create a broader service offering, with a particular focus on the UK and US markets. This latest restructure continues the focus on this strategy.
Marc Boyan commented: “We would like to thank our German team for their efforts and the projects won to date. The changes made across the Group during 2018 helped to deliver much improved level of client servicing and profitability. Our decision to close Dewynters Germany is an extension of our restructuring process, as we generate greater synergies across the Group and focus on the UK and US, which are our biggest growth markets.”