RNS Number : 5110V
React Group PLC
15 April 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Regulation 11 of the Market Abuse (Amendment) (EU Exit)
Regulations 2019/310. With the publication of this announcement via
a Regulatory Information Service, this inside information is now
considered to be in the public domain.
15 April 2021
REACT Group Plc
("REACT" or the "Company")
Trading update and Investor Presentation
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 2021.
REACT has continued to make strong progress in the period,
achieving c.19% organic growth in revenue to approximately GBP2.5m
(six months ended 31 March 2020: GBP2.1m) and c.43% organic growth
in gross profit to approximately GBP1.0m (six months ended 31 March
2020: GBP0.7m). All numbers quoted in this announcement are
Growth was the result of strong underlying performance in the
core business alongside some demand for COVID-19 decontaminations.
Healthcare, rail and facilities management sectors performed well,
augmented by incremental business in other areas such as education
and residential care homes.
REACT carried out a large proportion of high-margin work in the
period helping to drive the gross profit margin to c.40%,
approximately 700-basis points higher than the same period last
year (six months ended 31 March 2020: 33.2%).
The Board expects EBITDA (before exceptional items relating to
the acquisition of Fidelis and some restructuring) to be in excess
of GBP350k, materially higher than the same period last year (six
months ended 31 March 2020: GBP85k).
These numbers do not include any contribution from the recent
acquisition of Fidelis Contract Services Limited ("Fidelis"),
details of which were announced on 29 March 2021.
The Group's financial position is robust and underlying cash
generation remained strong during the period. Net cash at 31 March
2021 was GBP771k (31 March 2020: GBP306k). This figure is after
payment of the initial consideration for the Fidelis acquisition
(GBP1.5m in cash) and a proportion of the associated transaction
costs, the remainder of which (approximately GBP170k including VAT)
is payable in the second half of the Company's financial year.
Notice of Results
REACT intends to publish its unaudited results for the six
months ended 31 March 2021 towards the end of June 2021.
REACT is also pleased to announce that Shaun Doak, CEO, Andrea
Pankhurst, CFO and Mark Braund, Chairman will provide a live
presentation relating to this Trading Update via the Investor Meet
Company platform on Monday, 19 Apr 2021 at 12-noon BST.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9:00am the day before the
meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add
to meet REACT GROUP PLC via:
Investors who already follow REACT GROUP PLC on the Investor
Meet Company platform will automatically be invited.
Shaun Doak, Chief Executive of REACT, said:
"We are pleased to have delivered another period of progress,
with strong organic growth in both revenue and profit.
The immediate outlook is positive, although we are mindful the
seemingly ever-changing environment in which we work can bring with
it both opportunities and challenges. As a management team we
continue to review tactics almost daily to ensure REACT remains an
effective solution for our customers, our colleagues remain safe,
and the business profitable.
The acquisition of Fidelis at the tail end of the period
represents an exciting step forwards for the Group; marrying two
strong management teams with well-matched values to provide
incremental scale, resilience and capability, underpinning our
ambition to rapidly become the leading provider of specialist
cleaning, decontamination and hygiene services in the country.
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 business. They have responded with focus and
commitment throughout, ensuring we continue to deliver services
that help our customers return their property to safe operational
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
Amrit Nahal / Tony Quirke (Sales &
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(END) Dow Jones Newswires
April 15, 2021 02:00 ET (06:00 GMT)
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