Sparks

Reach’s trading update indicates a strong performance in Q4, meaning that the full-year 2024 results will be ahead of consensus (operating profit of £97.8m). The group has also completed a refinancing exercise, securing a revolving credit facility of £145m through to December 2028, with a one-year extension option and a £72.5m accordion. The previous facility was for £120m, expiring in November 2026, with two covenants for interest cover and net debt to EBITDA, which remain unchanged. The increase in quantum is a clear indication that Reach’s improving financial profile is recognised by lenders.

The brief statement also noted that, during the preparation of the historic West Ferry Pension Scheme for the planned buyout, an error has been unearthed that will require a £5m payment to rectify. This will be paid in the current financial year.

Full-year results are scheduled for 4 March, at which point it should be clear whether the good momentum from Q4 has carried into the new financial year.