tiprankstipranks
Trending News
More News >
Reach plc (GB:RCH)
LSE:RCH
Advertisement

Reach plc (RCH) AI Stock Analysis

Compare
36 Followers

Top Page

GB:RCH

Reach plc

(LSE:RCH)

Rating:67Neutral
Price Target:
79.00p
▲(5.05%Upside)
Reach plc's overall stock score is influenced by its solid financial position and attractive valuation. While technical analysis indicates potential weakness, the company's recent corporate events and high dividend yield provide positive signals for long-term investors.

Reach plc (RCH) vs. iShares MSCI United Kingdom ETF (EWC)

Reach plc Business Overview & Revenue Model

Company DescriptionReach plc operates as a national and regional news publisher in the United Kingdom and Ireland. The company has various national and regional brands across print and online, including HullLive, DerbyshireLive, belfastlive, BristoLive, football.london, Devon Live, TeessideLive, edinburghlive, Mylondon, Corkbeo, Dailystar, Mirror, Daily Express, Daily Record, ChronicleLive, OK!, ECHO, LeicestershireLive, Manchester Evening News, and BirminghamLive. It is also involved in the publishing and digital classified recruitment business. The company was formerly known as Trinity Mirror plc and changed its name to Reach plc in May 2018. Reach plc was incorporated in 1904 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyReach plc generates revenue primarily through the sale of advertising space across its print and digital media platforms. The company capitalizes on its large audience base and wide reach to attract advertisers looking to engage with specific demographics. In addition to advertising, Reach plc earns income from the circulation and subscriptions of its print publications. The company also benefits from digital subscriptions and partnerships that enhance its content distribution and monetization strategies. Key revenue streams include print advertising, digital advertising, subscription fees, and sale of publications, with digital transformation playing a significant role in its business model.

Reach plc Financial Statement Overview

Summary
Reach plc shows a moderately strong financial profile with improved profitability and operational efficiency. However, declining revenue and inconsistent cash flows highlight the need for better cash generation strategies.
Income Statement
63
Positive
Reach plc's income statement reflects a mixed performance. The gross profit margin has declined from previous years as revenue has decreased while costs have increased slightly. The net profit margin improved significantly in 2024 due to a substantial increase in net income, though revenue growth has been negative over the recent periods. While EBIT and EBITDA margins have improved, indicating better operational efficiency, declining revenue is a concern.
Balance Sheet
70
Positive
The balance sheet shows a stable financial position with a solid equity base and a manageable debt level. The debt-to-equity ratio is low, suggesting conservative leverage. The equity ratio is healthy, indicating a strong equity position relative to total assets. Return on equity improved significantly in 2024, showcasing better profitability and shareholder returns, though it remains sensitive to potential revenue fluctuations.
Cash Flow
55
Neutral
Cash flow analysis highlights some strengths and weaknesses. Free cash flow turned positive in 2024 after a negative performance in the previous year, indicating better cash management. Operating cash flow to net income ratio suggests cash generation is adequate, but the free cash flow growth rate has been inconsistent. The reliance on financing activities and past negative free cash flows pose potential risks.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue538.60M568.60M601.40M615.80M600.20M
Gross Profit235.20M223.90M225.70M286.40M297.00M
EBITDA90.60M61.40M87.90M93.70M29.00M
Net Income53.60M21.50M52.30M2.90M-26.70M
Balance Sheet
Total Assets1.21B1.22B1.26B1.34B1.27B
Cash, Cash Equivalents and Short-Term Investments22.70M19.90M40.40M65.70M42.00M
Total Debt62.30M63.20M46.70M36.20M41.60M
Total Liabilities530.90M582.10M621.50M703.70M707.20M
Stockholders Equity678.60M637.20M637.50M638.80M566.70M
Cash Flow
Free Cash Flow14.20M-1.00M7.00M73.10M50.70M
Operating Cash Flow26.00M15.90M20.70M85.60M52.60M
Investing Cash Flow4.90M-19.30M-30.40M-28.60M-21.80M
Financing Cash Flow-30.00M-17.10M-15.60M-33.30M-9.20M

Reach plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price75.20
Price Trends
50DMA
73.72
Positive
100DMA
72.76
Positive
200DMA
77.50
Negative
Market Momentum
MACD
0.72
Negative
RSI
57.16
Neutral
STOCH
25.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCH, the sentiment is Positive. The current price of 75.2 is above the 20-day moving average (MA) of 74.03, above the 50-day MA of 73.72, and below the 200-day MA of 77.50, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 25.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RCH.

Reach plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£194.86M23.6512.42%
67
Neutral
£237.33M4.428.15%721.64%-5.28%148.54%
67
Neutral
£221.81M17.6033.95%78.03%-12.89%
62
Neutral
$41.89B-1.63-12.07%3.43%2.03%-69.89%
61
Neutral
£155.75M8.84-14.10%4.63%-6.63%-177.14%
60
Neutral
£47.82M9.61-24.72%498.84%-5.93%
50
Neutral
£60.76M-24.18%-1.82%67.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RCH
Reach plc
75.40
-19.29
-20.37%
GB:CAU
Centaur Media
33.00
3.00
10.00%
GB:TIG
Team Internet Group
64.80
-122.41
-65.39%
GB:SAA
M&C Saatchi plc
179.00
-18.54
-9.39%
GB:TMO
Time Out
17.00
-38.00
-69.09%
GB:LBG
LBG Media Plc
94.40
-24.10
-20.34%

Reach plc Corporate Events

Financial Disclosures
Reach plc to Announce Interim Financial Results for H1 2025
Neutral
Jul 9, 2025

Reach plc has announced that it will release its interim financial results for the first half of 2025 on July 24. The company will host a presentation for investors and analysts, which will be accessible both in person and via a live webcast. This announcement indicates Reach plc’s commitment to transparency and engagement with its stakeholders, providing insights into its financial performance and strategic direction.

The most recent analyst rating on (GB:RCH) stock is a Hold with a £1.05 price target. To see the full list of analyst forecasts on Reach plc stock, see the GB:RCH Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Reach plc AGM Results and Leadership Changes
Neutral
May 1, 2025

At its recent Annual General Meeting, Reach plc successfully passed most of its proposed resolutions, including the re-election of several board members and the appointment of Piers North as the new Chief Executive Officer. The meeting also saw the withdrawal of a resolution related to the former CEO, Jim Mullen, who stepped down from his role. These changes are expected to influence the company’s strategic direction and leadership dynamics, potentially impacting its market positioning and stakeholder relationships.

Regulatory Filings and Compliance
Reach plc Updates Total Voting Rights
Neutral
May 1, 2025

Reach plc has announced an update regarding its total voting rights as of April 30, 2025. The company’s issued share capital consists of 322,085,269 ordinary shares, with 3,748,968 held in treasury. Consequently, the total number of voting rights available to shareholders is 318,336,301. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules.

Regulatory Filings and Compliance
Reach plc Announces Change in Major Holdings
Neutral
Apr 25, 2025

Reach plc has announced a change in its major holdings, with Slater Investments reducing its voting rights from 5.02% to 4.93%. This adjustment reflects a minor shift in the ownership structure of Reach plc, potentially impacting its governance and decision-making processes. The change was officially recorded on April 24, 2025, and reported the following day, highlighting the dynamic nature of shareholder positions within the company.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025