React Share Discussion Threads

[rivaldo] 26/9/2024 10:56

Cheers petewy, good to see the entire 21 page article - a very encouraging and in depth piece of research.

[petewy] 17/9/2024 14:54

Thanks Riv. Sincerely. wish I had a £1 for everytime I said that.

See ST in the IC A prodigious cash generator poised to clean up


No firewall....He goes overboead

[rivaldo] 17/9/2024 13:37

RNS - Octopus Investments have been buying more. They now own 16.71% (up from 15.22%), with 3.6m shares:



So in the last few weeks we've had Octopus, Dowgate and Harwood/Oryx all buying.

Perhaps this RNS and the major IC tip will now make investors realise the value here.

[rivaldo] 17/9/2024 11:46

Ta - anyone got access to the article at least post the conclusion now that the initial buying spree has passed?

The opening section gives a good flavour and reflects the cash-generative aspects of the business:

"Clean up with this prodigious cash generator

One capital light company is growing its revenue base, boosting margins, and is making astute acquisitions.

Strong free cash flow.
Impressive organic growth

It’s unusual for a company in the support services sector to generate eye-catching free cash flow (FCF): many suck in capital as they chase low-margin business. However, one capital light specialist cleaning and soft facilities management services company is growing its revenue base, boosting margins, and is making astute acquisitions to leverage cross-selling opportunities across its customer base.

The financial discipline shown by management is not only reflected in strong growth in profit, but a FCF performance more akin to a technology group. Trading on a prospective FCF yield of 12 per cent and with enterprise valuation (EV) only a mid -single digit multiple of earnings after interest, tax, depreciation and amortisation (Ebitda), the shares offer material upside."

[jaknife] 16/9/2024 16:08

Yes, tipped here:

Clean up with this prodigious cash generator


But behind a paywall.

[techno20] 16/9/2024 15:54

Nice break upwards. Looks like an Alpha write up from Simon Thompson in the IC.

[davemac3] 16/9/2024 15:53

What’s happened here?

[vikingben] 06/9/2024 19:02

Rivaldo, thank you, a very interesting find!

[robow] 06/9/2024 10:39

thanks for posting Rivaldo

[rivaldo] 06/9/2024 10:03

The investment company ONWD have this morning just release their (rather impressive) interims.

They own £1.42m of shares in REAT - 5.8% of their portfolio - and they had this to say today:

"React Group plc (REAT LN) - Date of first investment May 2023

With React we believe we have captured a defensive growth opportunity at a value price, and invested c.6% NAV into the company. It is a business the team have been researching since September 2022 (pre-launch) and was an early pipeline priority. Through a mix of specialist cleaning services for UK corporates, the business has a highly attractive earnings profile. The business has three core divisions:

1. React - the heritage of the group, reactive specialist cleaning often needed for emergencies or callouts requiring specialist cleaning techniques; high margin but less predictable.

2. LaddersFree - large glass pane and cladding cleaning for UK corporates, executed through a capital-light membership model.

3. Fidelis - contract cleaning focused on public services. The business operates over 80% of its sales on contracted terms of one to five years and has been organically growing at 17%+ per annum for the past four years under a new management team. Sales are highly cash generative and yield a high contribution margin, whilst CAPEX, depreciation and amortisation are all insignificant.

Crucially now, as a result of a mix of organic and acquisitive growth and the upcoming cessation of deferred consideration payments, the business is beginning to generate strong profits and free cash flow growth from contribution margin as it exploits inherent operational gearing. If one were to look away for a moment - not knowing the company cleans large glass facades, rolling stock, and prisons - its characteristics mean it could easily be mistaken for a small, successful software company. Yet we have been able to acquire shares in React on forward P/E multiples of 6.5x - 8.5x."

[vikingben] 02/9/2024 14:23

MM’s are still wanting our shares even after the sell price dropped back to 75p.
But I just got a quote to sell 110k@77.0689p and my lot @75.1p
Buying 25k @ 80p quoted. The real spread at the moment is 77/80
Looks to me that there are some very large buy orders being worked
Still waiting for RNS announcement re holders in React!

Edit 16:05 3/09
Got a feeling that an order have been filled with the 3 large trades at mid price the last trade being an odd number of shares should make an even amount money, we will see.
The above from from yesterday have not changed.

[davidosh] 02/9/2024 11:03

React usually present at our Mello conferences...there are two events this Autumn



For those who want a loyalty ticket which is by far the cheapest then do book early as there are just 100 available.

Mello 10th Anniversary tickets – Mello Events



This is the one day London show...

[rivaldo] 02/9/2024 10:21

Nice start to the week after just a 1k buy. Evidently stock remains in extremely short supply (unless there's a delayed buy trade yet to be reported).

[vikingben] 22/8/2024 16:56

Think the 110k trade will be the trade that increased yesterday’s spread from 75/78 to 75/79, we must be close to a RNS re holdings in React, maybe an increase 135k plus 110k =245k??
Who is the likely holder?
Earlier today I could get a quote to sell 100k but could only get a quote to buy 10k, so we might have to wait a bit longer, but going in the right direction.

GLA

Edit, 16:25 27/08/24.
can still get a quote to sell 100k @76.65p. Max buy 6k@78.5

[superhoop2] 21/8/2024 19:09

Previously they have confirmed that results would be above expectations I'm sure ... anyway all looking good at the mo and long may that continue!

[jeanesy] 21/8/2024 17:21

Not sure why we should get pre results update superhoop 2 . Never have done so before . Next results will be in November. News on Some new contracts would be nice though .

[mpearson5] 21/8/2024 15:28

Many thanks microscope . I will take a small opening position I think

[microscope] 21/8/2024 13:25

MPearson they had a 1 for 50 share consolidation not long ago.

But you are right, interesting company, low p/e, in a niche area with plenty of acquisition opportunities which they have said they could finance through existing strong cash position, but must be earnings enhancing within 12 months.

And given the sector's nature always the possibility that the hunter could become the hunted.

[mpearson5] 17/8/2024 09:58

This seems an interesting little company . I am thinking of taking an initial position.Stockopedia has revenue up 10% for 2024 , but eps increasing over 10 times ( 0.58 to 6.8) .Is this correct ? Have they secured some recent more lucrative contracts . Thanks in anticipation.

[superhoop2] 15/8/2024 20:06

Should be getting a pre results update soon hopefully!

[vikingben] 13/8/2024 13:18

Following the 135k trade announced yesterday!
I can now get a quote to sell my entire holding @74.1p or 50k @74.74
Maximum buy 20k @75.8p
Will expect another RNS re share holding in the company later this week??
GLA

Edit 16:20 14/08
Now offered 74.75 to sell my lot

[rivaldo] 08/8/2024 10:17

Indeed - now the maximum you can buy online is just 500 shares, whereas I could sell my entire holding (which is a hell of a lot more than 500 shares!) if I wished. Which I don't, and won't be for some time unless something changes.

[jeanesy] 08/8/2024 09:47

tried to buy some more here. Could only get 1250 :(
Dowgate increasing holding again

[rivaldo] 07/8/2024 14:04

Terrific shareholder list now for a £16m m/cap company - these five now own 53% of the company per REAT's web site:

Octopus Investments Nominees Limited 3,250,226 15.1
Dowgate Capital 2,773,790 12.9
Canaccord Genuity Group Inc 1,994,225 9.3
Harwood Capital LLP 1,940,000 9
Helium Rising Stars 1,503,787 7

[vikingben] 01/8/2024 20:08

That 85k announced today, was the trade at about 12:30 2 days ago, which increased the share price