React Share Discussion Threads

[gbenson1] 09/1/2023 11:32

Great to have won the new fast food contract. Just been thinking of the logistical implications of this latest contract. Whilst REACT was a pure deep cleaning company winning contracts mainly local to their HQ, logistics weren't so important, but now with this nationwide contract and Ladders Free on board I assume the deep cleaning is twice a year so not so much impact on travel, but with the facade/window contract presumably they'll need cleaning every 6-8 weeks, do Ladders free have a presence in the North East and South coast? Anyone got any thoughts/details..

[onehanded] 09/1/2023 09:53

Another contract news will be the trigger. Looking very promising ...

[rivaldo] 09/1/2023 09:48

Good to see a 500,000 share buy just now at the full 1.2p offer.

Looks to have broken upwards out of its recent trading range chart-wise?

[onehanded] 06/1/2023 14:11

Well before Xmas the rumour was of a massive contract being negotiated.

[yump] 06/1/2023 14:09

Fwiw: 800K over 350 locations is about £1150 per clean (2 a year).

[gbenson1] 06/1/2023 13:59

Possibly, there aren't than many fast food groups that have as many on the high street, quite a lot are now out of town locations. Nando's would be a good start, and it's deep cleaning inside as well as facade/window cleaning..

[davemac3] 06/1/2023 13:40

Could the contract be with Nando’s, they have about 350 uk outlets

[jeanesy] 05/1/2023 19:16

I am baffled by the prices paid today . Makes no sense at all ! Looks like a 1.2 million buy at some stage.. I think ?!

[yump] 05/1/2023 17:27

2mln shares at 1p is £20000. Chicken feed and insignificant, unless its one person.

[vikingben] 05/1/2023 15:57

I think the mm is desperate to get more shares at this level
Halifax just quoted me!
Sell 500k 1.11p
Buy 500k 1.01p

YES paying .1p more to for each share that they buy, so a loss of .1p on each share they sell??
Something a bit fishy going on, there most be a motive here, looks like a strange way of doing business.

Any ideas anyone?

[gbenson1] 05/1/2023 15:02

They are currently 1.1102 to buy & to sell with ii at the minute, the bid has been on 1.10 all day?? mms up to their usual tricks!

[jeanesy] 05/1/2023 14:48

The point is gbenson they are not sells . You can buy at 1.1p

[gbenson1] 05/1/2023 14:46

Surprised the Sp has held up so well despite the almost 1.75m sell trades @ 1.10 today, maybe the sentiment from the RNS is holding it up, or is there a big buy order being worked by the mms?

[ged5] 05/1/2023 11:35

I also seem to remember this company being turned around. Not sure that I can agree with you Effortless Cool about missing all previous forecasts.

The dip in price was brought about by the acquisitions and general market sentiment.

It's been a while since they last announced a contract win but late 2021 early 2022 several seven were announced in fairly quick succession. Let's hope there's more to come this time.

[yump] 05/1/2023 11:13

I suppose the question for non-traders is how big it can grow organically and whether there is also a chance of significant growth by acquisition, without hitting profits much.

The market is fragmented but how many quality businesses are out there at reasonable prices and when would cashflow be high enough to only need minor placings to buy them.

[rivaldo] 05/1/2023 10:57

It will take a while EC. But for the year to Sept'20 REAT were ahead of expectations, for Sept'21 they were only just behind expectations but still tripled EBITDA - only last year was well behind. And prior to that they'd turned the company around extremely effectively.

This management have turned a 0.04p EPS loss to Sept'19 into what now looks like a forecast 0.1p EPS for the year ended last September, with a £0.2m LBT turning into a £0.8m PBT which is forecast to rise to £2.2m PBT this year, with say 0.15p EPS. Which is a P/E of 7.5 at 1.125p.

Given Covid and the general economic hiatus since March'20 that's not a bad record, and SD/MB should be given credit for that.

[effortless cool] 05/1/2023 10:09

Agreed, rivaldo, but unfortunately they have missed all previous forecasts, so there is some way to go to develop a history of reliable delivery.

[rivaldo] 05/1/2023 09:57

Singer's note is now on Research Tree - their target price is now 1.5p "to reflect updated peer group ratings" which have presumably fallen dramatically over the last year or so, and so nothing to do with REAT.

Which seems incredibly cautious given that they forecast 0.1p historic fully diluted EPS to last September, and 0.14p EPS to this September. That's a P/E of only 8.0.

Singer themselves state there's "scope for the price to exceed this level" given "the M&A strategy and opportunities to grow LaddersFree ahead of our forecasts".

REAT is unlikely given its sector to achieve multiples of say 20 unless they achieve a sustained record of impeccable growth and acquisitions.

But given the overall strong record of the "new" management team in growing PBT and EPS since they took over, a multiple of 7 looks very undercooked imo - a current year P/E of say only 12 would see the share price at around 1.7p, i.e almost double the current price.

EDIT - I've reduced the EPS numbers above as Singer's Sept'22 numbers are slightly less than they were when they issued their initiation note last year, so the EPS must have reduced accordingly (they're rounded on the front page, which is the only one available on Research Tree).

[jeanesy] 05/1/2023 09:48

I think that 2.5p was a ridiculous price prediction. 1.5p is far more realistic. Some of these brokers really dont seem to know what they are doing imo.

Back to the trades. I think those 50k ones are sells as that is all you can get a quote for ( 1.1005) but i think that those at 1.1p are buys . Strange you can sell for more than you can buy but you certainly cant sell many. Not that i want to , just a dummy trade.

[onehanded] 05/1/2023 09:22

expect they want to buy in lol.

[graham1ty] 05/1/2023 09:19

Singers new research note has quietly dropped the target price from 2.5p to 1.5p. Pretty sneaky.

The headline is “Strong contract win momentum continues”

So, why the very dramatic downgrade ?

[jeanesy] 05/1/2023 09:03

You are right vikingben as one of them is mine !

[vikingben] 05/1/2023 08:51

Just had a quote to buy 1 million at 1.10
Max sell 50k at 1.101
The mm is playing games
Look out for late trades
I suspect a lot of the trades shown as sells, are potentially buys

[onehanded] 05/1/2023 08:03

yes, not easy to buy yet, expect early people after share price at lowest price before the rush.

[jeanesy] 05/1/2023 08:01

tried to buy a few more. None available so far