React Group PLC Trading update (4998Q)
October 28 2021 - 1:00AM
UK Regulatory
TIDMREAT
RNS Number : 4998Q
React Group PLC
28 October 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
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Regulations 2019/310. With the publication of this announcement via
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28 October 2021
REACT Group Plc
("REACT" or the "Company")
Trading update
REACT GROUP PLC (AIM: REAT.L), the leading specialist cleaning,
hygiene and decontamination company, announces a trading update for
the year ended 30 September 2021.
The Group continued to make good progress in the period,
achieving c.77% growth in revenue to approximately GBP7.7m* (FY
2021 market forecast: GBP7.8m) (FY 2020: GBP4.36m), which includes
contribution from six months of trading by the acquisition of
Fidelis Contract Services Limited ("Fidelis") during the period,
details of which were announced on 29 March 2021.
Underlying performance remained strong too; like-for-like
year-on-year organic revenue growth was c.20% and has been
generated by both the core business and Fidelis. Fidelis performed
particularly well closing a number of new customer contracts to add
material incremental revenue and profit within its contracted
recurring revenue business.
Healthcare, education, rail, housing associations and facilities
management sectors all performed well.
The Board expects EBITDA (before exceptional items relating to
the acquisition of Fidelis and some restructuring costs) for the
year ended 30 September 2021 to be in the range of GBP725,000 -
GBP775,000* (FY 2021 market forecast: GBP850,000) (FY 2020:
GBP261,000), representing year-on-year EBITDA growth of between
178% - 197%*. This represents like-for-like year-on-year organic
EBITDA growth of the enlarged Group of between 45% - 55%.
The Company's financial position is robust and underlying cash
generation remained positive during the year and net cash as at 30
September 2021 was GBP567,000* (FY 2020: GBP1.783m).
*Figures remain subject to audit
Notice of Results
REACT intends to publish its audited results for the year ended
30 September 2021 towards the end of January 2022.
Shaun Doak, Chief Executive of REACT, said:
"We are pleased to have delivered another period of good
progress growing revenue and profit both organically and through
acquisition.
Despite the early part of the second half of the year
experiencing some softness in projects and reactive work as the
country moved out of lockdown and an unusually quiet August in
terms of the typical summer shutdown maintenance work undertaken,
the growth of the Group's recurring revenues continues and in doing
so underpins performance and points the way to establishing
long-term strength in our business model. We have had a positive
start to the current financial year and sales activity is once
again beginning to increase. A steadily growing pipeline of
opportunities points towards a return to business-as-usual for a
number of our customers and the outlook for the Group remains
positive.
On a final note, and on behalf of the Board, I wish to say
'thank you' for the continued efforts of the terrific team that
make up the REACT Group. They have responded with focus and
commitment throughout, ensuring we continue to deliver services
that help our customers keep their property safe, clean and
hygienic."
For more information:
REACT Group plc Tel: +44 (0) 798 222
Shaun Doak, Chief Executive Officer 000 1
Andrea Pankhurst, Chief Financial Officer
Mark Braund, Chairman
Allenby Capital Limited (Nominated Tel: +44 (0) 203 328
Adviser and Broker) 565
Nick Athanas / Liz Kirchner (Corporate
Finance)
Amrit Nahal / Tony Quirke (Sales &
Corporate Broking)
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END
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