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Reach Plc (GB:RCH)
:RCH

Reach plc (RCH) AI Stock Analysis

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Reach plc

(LSE:RCH)

Rating:74Outperform
Price Target:
84.00p
▲(14.91%Upside)
Reach plc scores well due to its attractive valuation and positive corporate events that align management with shareholder interests. The financial performance shows strengths in profitability and balance sheet health, though revenue decline and cash flow inconsistency remain concerns. The technical analysis also provides a moderately positive outlook.

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 advertising, both in its print publications and digital platforms. The company monetizes its substantial audience base by offering advertisers access to its various media outlets, where they can place display, classified, and native advertisements. Additionally, Reach plc earns income from circulation sales of its print newspapers and magazines, although this revenue stream has been under pressure due to the industry's ongoing digital transformation. The company also explores other commercial opportunities such as events, syndication of content, and partnerships with other media and technology companies to enhance its offering and expand its reach. Significant factors contributing to its earnings include its strong brand recognition, extensive distribution network, and strategic investments in digital innovation to cater to changing consumer preferences.

Reach plc Financial Statement Overview

Summary
Reach plc has a moderately strong financial profile with improved profitability and operational efficiency, although facing declining revenue. The balance sheet is solid with low leverage and strong equity. Cash flows have turned positive but show inconsistency, necessitating better cash management 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
538.60M568.60M601.40M615.80M600.20M
Gross Profit
235.20M223.90M225.70M286.40M297.00M
EBIT
74.20M46.10M105.90M128.70M131.30M
EBITDA
90.60M61.40M87.90M93.70M29.00M
Net Income Common Stockholders
53.60M21.50M52.30M2.90M-26.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.70M19.90M40.40M65.70M42.00M
Total Assets
1.21B1.22B1.26B1.34B1.27B
Total Debt
62.30M63.20M46.70M36.20M41.60M
Net Debt
41.50M43.30M6.30M-29.50M-400.00K
Total Liabilities
530.90M582.10M621.50M703.70M707.20M
Stockholders Equity
678.60M637.20M637.50M638.80M566.70M
Cash FlowFree Cash Flow
14.20M-1.00M7.00M73.10M50.70M
Operating Cash Flow
26.00M15.90M20.70M85.60M52.60M
Investing Cash Flow
4.90M-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
Negative
Last Price73.10
Price Trends
50DMA
71.75
Positive
100DMA
74.91
Negative
200DMA
80.37
Negative
Market Momentum
MACD
-0.05
Positive
RSI
47.15
Neutral
STOCH
21.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RCH, the sentiment is Negative. The current price of 73.1 is below the 20-day moving average (MA) of 74.51, above the 50-day MA of 71.75, and below the 200-day MA of 80.37, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 21.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RCH.

Reach plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBLBG
75
Outperform
£200.51M25.1312.42%26.41%49.81%
GBRCH
74
Outperform
£230.70M4.308.15%12.20%-5.28%148.54%
GBSAA
71
Outperform
£220.60M17.5033.95%1.10%-12.89%
GBTIG
63
Neutral
£152.39M8.84-14.10%4.73%-6.63%-177.14%
61
Neutral
$14.79B5.90-3.99%6.20%2.67%-30.30%
GBCAU
60
Neutral
£47.82M9.61-24.72%7.27%-5.93%
GBTMO
57
Neutral
£85.77M-24.18%-1.82%67.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RCH
Reach plc
73.10
-5.20
-6.64%
GB:SAA
M&C Saatchi plc
185.00
-7.60
-3.95%
GB:TMO
Time Out
21.50
-30.50
-58.65%
GB:CAU
Centaur Media
33.00
-3.10
-8.59%
GB:TIG
Team Internet Group
63.00
-129.76
-67.32%
GB:LBG
LBG Media Plc
99.00
-15.00
-13.16%

Reach plc Corporate Events

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.

Regulatory Filings and Compliance
Reach plc CFO Exercises LTIP Awards and Sells Shares
Neutral
Apr 11, 2025

Reach plc, a prominent player in the media industry, has announced a significant transaction involving its Chief Financial Officer, Darren Fisher. On April 10, 2025, Mr. Fisher exercised his Long Term Incentive Plan (LTIP) awards granted in June 2023, resulting in the sale of a portion of the vested shares to cover applicable withholding taxes and other deductions. This transaction, conducted outside a trading venue, highlights the company’s adherence to regulatory requirements under the Market Abuse Regulation and underscores its commitment to transparent financial practices.

Executive/Board ChangesBusiness Operations and Strategy
Reach plc Grants Long Term Incentive and Restricted Share Awards
Positive
Apr 11, 2025

Reach plc announced the granting of nil-cost options and restricted share awards to its directors under the Long Term Incentive Plan (LTIP) and Restricted Share Plan (RSP). These awards are designed to align the interests of the management with those of the shareholders by tying compensation to performance over a three-year period. The LTIP options will have a two-year post-vesting holding period, while the RSP shares are held in trust during the three-year vesting period, with additional shares potentially awarded to match any dividends paid during this time. This move is expected to strengthen the company’s governance and incentivize its leadership, potentially impacting its market positioning positively.

Business Operations and Strategy
Reach plc Strengthens Employee Trust with Share Purchase
Positive
Apr 4, 2025

Reach plc announced that its Employee Benefit Trust (EBT) has acquired 414,174 ordinary shares to manage dilution from share plans, as previously communicated to shareholders. This strategic move supports employee share options and reflects the company’s ongoing commitment to employee benefits, potentially enhancing stakeholder confidence in its operational strategies.

Executive/Board ChangesShareholder Meetings
Reach plc Announces Leadership Changes Ahead of AGM 2025
Neutral
Mar 31, 2025

Reach plc has issued a supplement to its Notice of Annual General Meeting 2025, announcing the appointment of Piers North as the new Chief Executive Officer and director. This change follows the immediate resignation of Jim Mullen from the board. The supplement includes an additional resolution for the appointment of a new director, which will be proposed at the AGM. Shareholders are advised to review the supplement for updated proxy voting instructions to ensure their votes are counted. The company will provide updates on any changes to the AGM arrangements via its website and a Regulatory News Service.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Reach plc Announces Leadership Transition Amid Strong Performance
Positive
Mar 31, 2025

Reach plc has announced a leadership change with Jim Mullen stepping down as Chief Executive, to be succeeded by Piers North, the current Chief Revenue Officer. This transition follows a strong full-year performance and positions the company for future growth, emphasizing its digital evolution and commitment to impactful journalism.

Shareholder MeetingsRegulatory Filings and Compliance
Reach plc Announces 2025 Annual General Meeting Details
Neutral
Mar 26, 2025

Reach plc has announced its Annual General Meeting (AGM) will be held on May 1, 2025, at Deutsche Numis’ offices in London. The notice of the AGM is accessible on the company’s website, and shareholders who opted for paper communications will receive mailed copies. Any changes to the AGM arrangements will be communicated through the company’s website and a Regulatory News Service. This announcement ensures transparency and compliance with UK Financial Conduct Authority regulations, reinforcing Reach plc’s commitment to shareholder engagement and regulatory adherence.

Financial DisclosuresRegulatory Filings and Compliance
Reach plc Releases 2024 Annual Report
Neutral
Mar 18, 2025

Reach plc has published its 2024 Annual Report and Accounts, which are now available on its website and will be distributed to shareholders who opted for paper communications. The report has been submitted to the UK Financial Conduct Authority for public inspection, aligning with regulatory requirements. This release underscores the company’s commitment to transparency and regulatory compliance, potentially impacting its stakeholders by providing insights into its financial health and operational strategies.

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.