Updates

Reach - Data driven revenues up 56%

April 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Although the shares fell on results, these were in line and crucially its digital growth strategy remains on track. Revenues and operating profit were down 2% and 27%, respectively, to £601m and £106m due to uglier advertising markets and rising costs. Operating expenses rose 5% to £477.9m with newsprint costs up 60%, but cost mitigation (reduced pagination and print runs) limited operating margin decline to 17% (down 0.6%). On the positive side, gas costs are now plummeting and supply chains normalising, which will reduce costs in 2023, as will a £30m cost reduction plan. Net cash fell to £25.4m after paying £55.8m into the pension, £17.1m deferred payment for Express & Star newspapers and £11m for phone hacking provisions, but liq ...

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Restaurant Group - Cheerier outlook married to ambitious EBITDA margin targets

ME Group

Reach - Deutsche says “forecast risk firmly to the upside” (December 2024)

Reach - Operating margins soar 4% to 16.8% (September 2024)

Reach (June 2024)

Reach - Shares bounce 22% after results (April 2024)

Reach (December 2023)

Reach (September 2023)

Reach - Comparables to get easier in H2 (June 2023)

Reach (February 2023)

Reach - Q3 shows impressive print sales resilience (November 2022)

Reach - Plus products now over 30% of Digital (September 2022)

Reach - CEO and chairman buy shares (June 2022)

Reach - High margin digital side could be 50% turnover by FY’25 (April 2022)

Reach - Recruits another 400 writers (January 2022)

Reach - Gain in two months: 69%! (September 2021)

Reach - Direct advertising set for exponential growth; DIRT CHEAP on PE of 6.5 (July 2021)

Reach - Newspaper group could double profits through digital advertising explosion (February 2021)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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