REACT Group PLC

REAT

GB00BPCTRB97

Business Support Services

Market Closed - London S.E. Other stock markets 11:35:11 2024-04-26 am EDT			5-day change	1st Jan Change
71 ^GBX	0.00%		+5.19%	-2.07%

Apr. 25	React Group backs annual guidance on robust first half performance	AN
Apr. 04	React says three new contracts demonstrate demand and opportunities	AN

React swings to profit as acquistitions boost annual revenue

February 06, 2024 at 03:46 am EST

(Alliance News) - React Group PLC on Tuesday said it swung to a profit in financial 2023, as its revenue jumped.

The Birmingham, England-based cleaning, hygiene and decontamination firm swung to a pretax profit of GBP50,000 in the financial year ended September 30, from a GBP701,000 pretax loss a year ago.

This was driven by a 70% increase in revenue to GBP19.6 million from GBP13.7 million the year prior.

Recurring revenue was up 87%, compared to 83% in financial 2022. On a like-for-like basis, React recorded organic revenue growth of approximately 21%.

The firm said that the acquisitions of Fidelis and Laddersfree, in 2021 and 2022 respectively, have brought in an "established and impressive client base", which has helped drive the group's revenue.

Additionally, adjusted earnings before interest, tax, depreciation and amortisation more than doubled to GBP2.3 million from GBP1.0 million a year ago.

Looking ahead, React cited good momentum going into financial 2024, following a "strong" first quarter, reflecting significant growth opportunities for the group and its essential services.

Chief Executive Officer Shaun Doak said: "I am delighted to announce a strong performance from the React Group, marked by impressive organic growth and improved profitability and cash conversion. This success underscores the strength of our value proposition and customer acquisition strategy.

"Following the acquisitions of Fidelis in March 2021 and LaddersFree in May 2022, we have consistently achieved substantial organic growth. This achievement showcases our proficiency in integrating these offerings into our core services, unlocking potential across an expanded customer base. Our success is evident through effective cross-selling and upselling strategies, as well as our ability to attract new customers."

Shares in React rose 6.5% to 1.41 pence each in London on Tuesday morning.

By Sabrina Penty, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Stocks mentioned in the article

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	BIST 30	10,732 PTS	+2.39%	+1.94%	-
	REACT GROUP PLC	71 GBX	0.00%	+5.19%	19.06M

Latest news about REACT Group PLC

React Group backs annual guidance on robust first half performance	Apr. 25	AN
React says three new contracts demonstrate demand and opportunities	Apr. 04	AN
React Group Wins Three Contracts	Apr. 04	MT
REACT Group PLC Receives Three Material Contracts Totaling over £1.3 Million Annually	Apr. 04	CI
EARNINGS AND TRADING: Northamber loss widens; Ethernity contract boost	Mar. 28	AN
Transcript : REACT Group PLC, 2023 Earnings Call, Feb 12, 2024	Feb. 12
FTSE 100 Closes Up 0.9%, Lifted by BP	Feb. 06	DJ
Strong BP results boost the FTSE 100	Feb. 06
React swings to profit as acquistitions boost annual revenue	Feb. 06	AN
Earnings Flash (REAT.L) REACT GROUP Reports FY23 Revenue GBP19.6M	Feb. 06	MT
Earnings Flash (REAT.L) REACT GROUP Posts FY23 EPS GBX0.00	Feb. 06	MT
REACT Group PLC Reports Earnings Results for the Full Year Ended September 30, 2023	Feb. 06	CI
React Group hires new finance chief from end of January	Dec. 12	AN
React Group Plans CFO Succession	Dec. 12	MT
REACT Group PLC Announces CFO Changes	Dec. 12	CI
REACT Group PLC Announces Board Changes	Dec. 12	CI
React Bags GBP3.8 Million Contract Extension with University	23-10-10	MT
React Group shares rise on contract extension with "major university"	23-10-10	AN
React Group plc Announces It Has Been Awarded A Contract Extension to Provide Contracted Maintenance, Cleaning and Hygiene Services Within the Education Sector for A Major Universit	23-10-10	CI
React Group Wins Deal to Provide Window, Signage Cleaning Services to British Retailer	23-09-06	MT
React shares enjoy boost on new contract valued at GBP500,000	23-09-06	AN
React Group plc Wins Initial Two-Year Contract	23-09-06	CI
React Group wins GBP1.8 million cleaning services contract	23-08-02	AN
React Group Wins GBP1.8 Million Cleaning Services Contract From New UK Customer	23-08-02	MT
REACT Group PLC Wins Contract with A New Customer to Provide Cleaning Services to Five Shopping Centres in the West Midlands	23-08-02	CI

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Company Profile

REACT Group Plc is a United Kingdom-based provider of specialist cleaning, decontamination and hygiene services, including both contracted commercial cleaning and specialist emergency decontamination work. The Company's segments include Contract Maintenance, Contract Reactive and Ad Hoc work. The Company operates through three business divisions: commercial windows and cladding, hygiene and maintenance, and emergency and decontamination. Its core business includes commercial window cleaning businesses providing an essential service for an array of blue-chip customers, and regular cleaning regimes in the health service, the education sector, on parts of the rail network and the highways. Its business also includes emergency call-out work to respond to trauma, anti-social behavior, and other hazardous incidents across a range of sectors. The Company's specialist ad hoc work includes dealing with void clearances, fly tipping, pigeon guano clearance and graffiti.

Sector

Business Support Services

Calendar

2024-06-25 - Q2 2024 Earnings Release (Projected)

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