React Share Discussion Threads

[vikingben] 26/4/2024 18:32

Another 50k which looks like a buy from yesterday??
Only 8 trading days, will tell whether the brothers will sell the rest of their shares, suspect there are buyers waiting for them?
They have 83k locked in until Sunday 12/05/2024

[rivaldo] 26/4/2024 11:06

Hi EC - I added some more yesterday too.

I can't see the share price being at these levels for long.

EDIT - Currently online you can only buy a maximum 3k shares at 71.95p, whereas you can sell 15k shares at a big premium to the 71p bid at 71.55p. Encouraging.

[vikingben] 26/4/2024 09:29

MM’s still want your shares, just been quoted 71.55 which is above mid for 25k.
Can’t even get a quote to buy 5k
Looks to me like they have large buy orders to fill.
GLA

[effortless cool] 26/4/2024 08:50

I'm backing my analysis - I've added to our holdings across various family accounts this morning.

[rivaldo] 26/4/2024 08:43

Singer Capital Markets have updated - they say Buy and have a 97p target price.

They forecast 6.76p EPS to this September, rising to 7.68p EPS and 8.61p EPS.

The £1m cash pile also rises to £2.6m and then £4.6m.

Since H1's EBITDA is already 53% of their forecasts, even before the recently RNS'd contract wins, it's highly likely imo that REAT will beat expectations this year.

Especially with over 85% recurring revenues and improving margins.

Singer conclude as follows:

"Contract win momentum continues The Company has continued its drive on new business, with three recently announced material contracts totalling over £1.3m of revenue p.a. In addition, it continues to be awarded numerous small and medium sized wins which highlights its cross-selling capability. The pipeline for the remainder of the year remains robust which provides the Board with confidence over full year expectations".

[solooiler] 26/4/2024 06:36

Actually you were just being deliberately misleading to new potential investors given you've held REAT for ages even before the consolidation so surely you knew it was over a billion and even posted this below. That's really poor of you.

"superhoop2 - 03 Feb 2024 - 10:06:31 - 1048 of 1267 REACT Group : contamination/deep cleaning specialists - REAT
Whatever happens I don't want to see any more shares issued ... this, I believe, is holding back the share price and will continue to do so. Also, if an acquisition is in the pipeline then give current shareholders a chance to purchase and not just the Institutions as previously!"

[solooiler] 25/4/2024 22:33

you realise until they did a share consolidation a month ago the share count was over 1.1 billion?

Lol

[superhoop2] 25/4/2024 22:07

When looking at companies to potentially buy into, I first look at shares in issue ... generally I am happy with , say, 200 million ... I have never seen a company with such a small amount of shares in issue ... 20 odd million ... that gives me great encouragement.

[effortless cool] 25/4/2024 20:43

A very encouraging H1 update this morning. Unlike REAT's brokers, I have revised my forecasts upwards as a result.

Revenue was higher than I forecast, but having put that up, I had to shade down gross margins to get to the quoted gross profit. My EBITDA was then short, so I reduced operating expenses accordingly. (I had been deliberately prudent with this previously).

Putting those changes through still left me well short on cash. Annoyingly, they do not quote net cash, so I have assumed that borrowings are unchanged from 2023 YE. Reducing receivables and increasing payables to perfectly plausible levels then closed the cash gap.

As a result of these changes, my valuation increased from 83.0p to 94.7p, making these a Strong Buy by my metrics.

What seasonality there is with REAT shows an H2 bias, so I think that there is little doubt that the next update will be "ahead of expectations".

[vikingben] 25/4/2024 18:40

It will be interesting to see what happens tomorrow 91k of 2 late trades, both look like sells, that is if they were done today

[chrismo] 25/4/2024 17:12

I know that Trade Num 16 at 16:10 was a buy at 70.222

[vikingben] 25/4/2024 16:48

Might get some delayed sells.
Can’t sell as many as yesterday.
A lot of todays show as sells will be buys, when the spread was 70-73 you could buy at 71.
Suspect all the trades above 71p but below mid price are buys

[gbenson1] 25/4/2024 10:46

The share price is at a conundrum, there aren't many share is issue so the MMs are hoping for some sellers, but investors are waiting for a price increase from the 67.5p 1/50 split, somethings got to give, unfortunately I think the MMs will have to increase the bid price to stimulate sellers which will break their hearts..

[rivaldo] 25/4/2024 09:36

Dowgate Capital have retained their Buy and 100p price target.

They forecast 6.9p EPS to this September,rising to 8.1p EPS and then 9.0p EPS, though they state that even these are based on conservative assumptions.

The £1m cash pile at September rises to £3.1m and then £5.1m. Though it's likely that there'll be more earnings-enhancing acquisitions by then.

In summary:

"Positive 1H momentum shines through.

React Group has released a positive update that has confirmed that the strong 2H 2023A momentum has continued into 1H 2024E, with what was described as a ‘record trading performance’. The Board has reported good sales growth in all three divisions of the business, with the statement commenting that the Board has ‘a high degree of confidence in achieving full year market expectations.’ We have left our FY 2024E forecasts unchanged at this point. These assume FY +9% revenue growth, but in our view, there could be an accent on the upside as the year progresses, following 1H revenue growth of +14%, and contract wins that should benefit 2H and next year. We retain our Buy stance with a Target Price of 100p. This still conservatively assumes the Group achieves c60% of its medium term cashflow target, and we reiterate again, it also does not include any potential value enhancement from deploying the Group’s firepower on acquisitions."

"We retain our Buy stance with a 100p TP. We value React Group using the EVA®/MVA valuation method. This derives a share price of 100p assuming only c60% of the medium-term goal of £5m p.a. of free cashflow generation is met. It could outperform that, and we highlighted in our 9 April initiation research, that we believe the Group has firepower to enhance."

[microscope] 25/4/2024 08:30

Another strong statement from a company growing successfully. On these numbers and promise of 2.5 million for FY I see no reason why 100p can't be achieved this year. Would still have them on a single figure p/e for the current year with likely more growth to come.

Nice cashpile too for further acquisitions and as you point out Rivaldo 85ps recurring revenues is outstanding for any business. And underpins the future..

[rivaldo] 25/4/2024 07:25

A terrific H1 trading update today, which strongly suggests that REAT will beat expectations for the year.

With H1 EBITDA up 36% year on year to £1.3m, REAT have already achieved 52% of the £2.5m consensus forecast, even without the substantial contract wins already announced this year.

Other highlights:

- recurring revenues remain above a huge 85%
- the cash pile is now up to £1.5m, against a £14.8m m/cap
- margins are increasing fast given revenues up 14% and EBITDA up 38%

No wonder there's "a high degree of confidence in achieving full year market expectations" - and much more imo.

On a current year ex-cash P/E easily in single figures REAT looks in great shape for a re-rating:

[rivaldo] 24/4/2024 10:19

Cheers vikingben - on the move now. Should be good for a lot more if there continues to be no stock around.

[vikingben] 23/4/2024 15:33

Well I just about emptied my current account got 5k @679217p.
Tried a similar purchase, quoted 68p. But currently there are a lot more sells than buys, but can still get a quote sell my lot.
All my eggs in 1 basket.
GLA

Edit, just been offered 67.75 to sell 50k, can still get a quote for my lot @67.05

[jeanesy] 23/4/2024 14:51

I really hope this bit is true
' The group is actively looking for further M&A opportunities, but next time is likely to use its own cash reserves

I wouldn't want my shares to be hit like they were the last time, so fingers crossed any acquisition is made using the comapanies coffers.

[stevesham] 23/4/2024 14:46

Thoughts anyone

[gbenson1] 23/4/2024 10:38

Can't believe with so few shares now in issue that the buying over the last week, albeit smallish scale hasn't moved the sp?

[vikingben] 19/4/2024 18:37

jeanesy earlier today I got quotes to sell my entire holding @67.5p.
Could not get a quote to buy 10k.
My guess is that there are buy orders at this level, which is holding back the upward movement.

[jeanesy] 19/4/2024 15:39

the spread is incredibly tight less than 0.5p .

[jeanesy] 19/4/2024 15:20

MM's still needing shares Vikingben ?

[davidosh] 18/4/2024 11:59

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