React Group PLC Trading Update (6142T)
16 November 2023 - 6:00PM
UK Regulatory
TIDMREAT
RNS Number : 6142T
React Group PLC
16 November 2023
16 November 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 year ended 30 September 2023.
-- Revenue of GBP19.6m (2022: GBP13.7m) - an increase of 43%
Ø Organic like-for-like revenue growth of 21%
-- Adjusted EBITDA in excess of GBP2.2m (2022: GBP953k) - an increase of more than 130%
-- Net cash, less bank debt and finance leases of GBP0.7m (2022: -GBP0.1m)
Trading in the year has continued to be strong despite the
economic headwinds facing our industry. Subject to audit, revenue
for the year will be approximately GBP19.6m (2022: GBP13.7m), an
increase of 43%. Organic like-for-like revenue growth increased 21%
on last year. The Group will report an Adjusted EBITDA in excess of
GBP2.2m (2022: GBP953k) an increase of more than 130%.
The award of new contracts has been consistently robust across
the Group with all divisions contributing to the significant growth
in revenues. Amongst many, these have included being awarded a
GBP1.8m contract over three years with a new customer to provide
cleaning services to five shopping centres in the West Midlands; a
multi-year contract to perform deep cleaning, window and façade
cleaning across c.350 mainland UK locations for a prestigious
high-street fast-food chain worth GBP800k; and post period end a
GBP3.8m contract extension to provide contracted maintenance,
cleaning and hygiene services within the education sector for a
major university.
Each division has performed well throughout the year which is
testament to the Group's acquisition strategy. LaddersFree has
added its first full year of trading to the Group and has made a
considerable contribution to Group profitability. Fidelis has more
than doubled its revenue since its acquisition two years ago whilst
demand for REACT's dedicated services has returned and remains
buoyant. Success cross-selling and upselling amongst the Group's
customers continues to build momentum, increasing share of customer
wallet and driving organic growth.
Key industry sectors driving growth include Facilities
Management, where the Group provides a valuable role performing
specialist work through an increasing number of FM providers;
Retail, where the Group has seen growth in the number of customers,
although some have reduced frequency of cleans in response to the
current economic environment; Education, where the Group continues
to be selective to ensure quality of service and margins; and
Industrial, where the Group's contract and specialist cleaning
capability is in high demand.
Shaun Doak, Chief Executive, commented: "We are delighted with
the trading performance of the Group, achieving record revenue and
profit growth in the year. The pipeline for the new year is healthy
and we are seeing strong demand for all of our divisions. Our
cross-selling ability throughout the business not only enhances our
offering but also improves and increases our sales pipeline."
About Us:
REACT Group plc is the UK's leading specialist and contract
cleaning business and operates with three divisions: LaddersFree,
one of the largest commercial window cleaning businesses in the UK;
Fidelis Contract Services ("Fidelis"), a contract cleaning and
facilities maintenance business; and REACT business, which
primarily provides a solution to emergency and specialist cleaning
situations, both through long-term framework agreements and on an
ad-hoc basis.
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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