React Group PLC Trading Update (1375X)
April 24 2023 - 1:00AM
UK Regulatory
TIDMREAT
RNS Number : 1375X
React Group PLC
24 April 2023
24 April 2023
REACT Group plc
("REACT", the "Group" or the "Company")
Trading Update
REACT Group plc (AIM: REAT.L), the leading specialist cleaning,
hygiene, and decontamination company, is pleased to announce a
trading update for the six months ended 31 March 2023.
Trading in the six months period has been strong and the
positive contract win momentum has continued with good sales growth
in all three divisions of the business. As a result, revenues for
the period are expected to be approximately GBP9.3m (2022: GBP5.1m)
achieving a gross profit of approximately GBP2.5m (2022: GBP1.2m)
and an Adjusted* EBITDA of approximately GBP925k (2022: GBP133k).
The improved margins reflect a continuing improvement in mix of
business, to higher margin repeat business, and operational
improvements made within the Group.
LaddersFree, one of the largest commercial window cleaning
businesses in the UK, continues to strengthen its pipeline of
repeat business with well-known brands. In addition to the
previously announced notable contract wins, LaddersFree has been
awarded contracts to provide services for retailers, restaurants,
hotels and car dealerships amongst others. The division continues
to attract higher margin contracts helping to deliver a
considerable contribution to Group profits.
As reported in the AGM statement, Fidelis experienced a slightly
slower start to the period however it has recovered significantly,
achieving record revenues in recent months. The division has been
awarded both sizeable new contracts and renewals including two
material projects with schools, numerous NHS Trusts and a
specialist property services business that will generate
approximately GBP500k of revenue per year.
The REACT business, which primarily provides a solution to
emergency and specialist cleaning situations, both through
long-term framework agreements and on a one-off basis, has
continued its steady progress and its bespoke services remain in
demand.
Commenting on the trading update Shaun Doak, Chief Executive
Officer of REACT, said: "We are delighted by the performance in the
period with the Group achieving record revenue and profit growth.
The improved mix of recurring revenue as well as higher margins
provides the business with greater visibility and a more dependable
revenue stream. The pipeline for the remainder of the year is
strong, which provides cautious optimism and underpins the Board's
confidence in full year results being in line with market
expectations."
* Adjusted EBITDA represents earnings before separately
disclosed acquisition and other restructuring costs (as well as
before interest, tax, depreciation and amortisation). This is a
non-IFRS measure.
For more information:
REACT Group Plc Tel: +44 (0) 1283 550
Shaun Doak, Chief Executive Of cer 503
Andrea Pankhurst, Chief Financial Officer
Mark Braund, Chairman
Singer Capital Markets Tel: +44 (0) 207 496
(Nominated Adviser / Broker) 3000
James Moat / Philip Davies
IFC Advisory Tel: +44 (0) 20 3934
(Financial PR / IR) 6630
Graham Herring / Zach Cohen
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END
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