React Share Discussion Threads

[superhoop2] 16/4/2021 09:26

I see that React are moving into carpet cleaning etc as well as vermin control ... hope this gets brought up at the presentation on Monday. Very encouraging.

[rivaldo] 15/4/2021 08:33

Allenby have retained their prior forecasts of £850k EBITDA, almost £0.8m PBT and 0.14p EPS - though of course a full year's inclusion of the Fidelis acquisition takes the run-rate to 0.17p EPS. Their forecast now seems rather conservative. With a stated MINIMUM of £350k EBITDA in H1, one might expect - with a little growth in H2, especially given the lockdown easing - a conservative £400k in H2. In addition, Allenby incorporate £295k EBITDA from Fidelis in H2 in their forecast (call it a round £300k). That makes a total of £1.05m EBITDA, against Allenby's £850k forecast. On an annualised basis, with a full year of Fidelis contributing £600k EBITDA, that's a run-rate of £1.35m EBITDA against a £12.7m m/cap......

[napoleon 14th] 15/4/2021 08:15

Good news. Unfortunately I don't hold, but find a read-across to IMMO's "Uvisan". Maybe they should make a deal around that? BTW I've bought yet more IMMO.

[superhoop2] 15/4/2021 07:27

Excellent news ... Great feeling to be in early on a company clearly going places. Recent acquisition was a blinding bit of business ... hopefully first of many.

[rivaldo] 15/4/2021 07:19

Excellent H1 trading update this morning: - 43% organic gross profit growth to £1m - EBITDA of £350k, up from £85k last year, with Fidelis to add fully to H2 EBITDA - £0.8m net cash - after paying £1.5m for Fidelis and associated acquisition costs - gross profit margins up to 40% from 33% - positive outlook - and stating clearly how high REAT is aiming: "our ambition to rapidly become the leading provider of specialist cleaning, decontamination and hygiene services in the country" Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Trading-update-and-Investor-Presen/84829403

[rivaldo] 12/4/2021 09:18

Just announced this morning - Fidelis have won a £700,000 cleaning contract tender for Tewekesbury School: Https://bidstats.uk/tenders/2021/W15/748683303 This is until March 2027, so it's £100k per annum for the next 7 years. A very nice annual sum, but most importantly lovely recurring income for the long-term as per Fidelis' other contract wins over the last couple of years.

[rivaldo] 11/4/2021 07:38

I expect REAT will get a one-off boost from the great re-opening, as (1) call-out work from the likes of courtrooms and housing associations returns to normal, and (2) various premises require COVID decontamination. The main driver of REAT's recent success - via the excellent new management - has been the growth in its core business. Whilst COVID has been a useful addition in compensating for the loss of some call-out work, it provided only £444k of revenues last year, so the return of REAT's regular work should more than outweigh the steady decline in COVID revenues which is likely, especially as fears over transmission via surfaces are diminishing - unless there's a further lockdown and another more transmissible variant comes along.

[zico01] 09/4/2021 15:42

Continuing it's rerating ... much more to go

[rivaldo] 09/4/2021 15:17

..or perhaps exciting :o)) Another 350,000 shares just reported bought at the full 2.45p offer.

[vikingben] 09/4/2021 14:26

Getting exiting

[rivaldo] 09/4/2021 13:27

New highs after 454,507 shares bought at the full 2.4p offer price and 211,000 shares bought earlier at 2.3p.

[rivaldo] 08/4/2021 12:13

Indeed - hopefully new highs soon. I'm certain the two 950k and 952k trades and the two 450k trades today are both people switching their stock into their ISAs for the new tax year, which is good to see (particularly the 950k trades as they're almost exactly £20k).

[1gw] 07/4/2021 17:42

2.29 last reported trade sets tomorrow up nicely.

[rivaldo] 07/4/2021 15:07

Interesting to see 500,000 shares bought at 2.25p around 10.26 am above the 2.2p full offer price. There's been other good-sized buying of a 240k, a 350k and just now another 250k at 2.24p, whilst a 450k sell achieved a good premium over the bid price at 2.15p. Encouraging stuff suggesting keen buying and decent demand out there.

[rivaldo] 06/4/2021 11:21

REAT have today posted a nice, concise summary of the maiden, earnings-enhancing Fidelis acquisition on their web site: Https://www.reactsc.co.uk/post/react-ties-up-with-fidelis-in-our-maiden-acquisition

[rivaldo] 30/3/2021 10:21

According to this, Fidelis have won a £22m contract for cleaning services over six years to September 2026 at the University of Birmingham! Https://bidstats.uk/tenders/2020/W39/735445093 Looking closely, I suspect this is a case of the commas in the wrong place....further down there's a link to this, which states that the contract is for £2.16m over 3 years, i.e £720,000 per annum, with an option to extend for another 3 years: Https://litmustms.co.uk/tenders/UK-Birmingham:-School-cleaning-services./522QM7J29B In the last 9 months Fidelis have also won an £815k school cleaning contract over 5 years here: Https://bidstats.uk/tenders/2020/W31/732037122 Another one here for £390k for 3 years: Https://bidstats.uk/tenders/2020/W26/729546868 And another for £350k for 5 years: https://bidstats.uk/tenders/2020/W24/728563855 Pretty impressive. That's around £1.1m of guaranteed revenues per annum for the next few years just from these four contracts. No wonder Fidelis has 87% recurring revenues if these are typical.

[rivaldo] 29/3/2021 09:39

:o)) Cheers EC - done.

[effortless cool] 29/3/2021 09:02

I think you need to move your decimals, rivaldo.

[rivaldo] 29/3/2021 08:20

Allenby Capital have issued a new note. They've increased their EPS forecast for this year by 40% to 0.14p EPS, and note that with a full year's contribution from the Fidelis acquisition the forecast would have been 0.17p EPS. This puts REAT at 2.15p on a current year P/E of just 12.6 on the fully consolidated business. And with Fidelis being so cash-generative, REAT are still expected to have £0.9m cash as at this 30th September. Which means there's still room for another acquisition, albeit likely on a smaller scale than Fidelis: Http://www.allenbycapital.com/research_1188_3174052641.pdf

[1gw] 29/3/2021 07:29

Gets rid of most of the net cash on the balance sheet, so hope it turns out as they expect. Looks promising though.

[rivaldo] 29/3/2021 07:17

RNS - REAT's first acquisition - and it looks a very good one: - immediately earnings enhancing - a whopping 87% recurring revenues - £1.7m initial consideration paid for £253k PAT, being £200k shares and £1.5m cash - the deferred consideration is dependent on big increases in profits - the founder and management are staying with the business within REAT - it's complementary to REAT, with a wide spread of customers Looks ideal imho: Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Acquisition-of-Fidelis-Contract-Se/84685072

[vikingben] 22/3/2021 17:20

Looks like there might be large buyers to be announced tomorrow

[m5] 22/3/2021 09:55

Been a good share to me this one. A bagger now, but I intend to hold as looks very promising going forward and still only 11 million market cap. Good luck all.

[eurogrum] 22/3/2021 09:21

A good company with prospects, one I have a holding in, Rivaldo you always post the facts and updates, also very quickly, I followed you here a long time ago, good luck to everyone, and have a good day.

[rivaldo] 22/3/2021 09:15

...and buying at 2.29p now.