React Share Discussion Threads

[superhoop2] 13/7/2023 19:42

Saw that ... no movement in the share price ... hopefully something positive bubbling under the surface!

[jeanesy] 13/7/2023 18:27

What's with the 23 million share trade today ?!

[melloteam] 12/7/2023 12:56

Just to let shareholders and prospective investors know that React plc, Windward, FADEL and NASCIT will be presenting on the MelloMonday webinar at 5pm on Monday 17th July 2023.

5:00pm Mello welcome and keynote presentation by Fatima Iu of Polar Capital
5:30pm Company presentation by Windward
6:00pm Company presentation by FADEL
6:40pm Stephen Clapham presents Behind The Balance Sheet
7:00pm Company presentation by React plc
7:30pm Company presentation by NASCIT
8:10pm Research and Regulatory changes, Gareth Evans of Progressive
8:15pm Mello BASH

There will be over 500 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.


Register for FREE for our Trusts and Funds event the following day, Tuesday 18th July 2023 at 2pm.

The programme is as follows:

2.00 pm Keynote presentation from Edmund Shing
2.30 pm Company presentation from Ocean Dial
3.00 pm Andrew Latto presentation on the latest trends in IT&Fs
3.30 pm Company presentation from International Biotechnology Trust
4.00 pm Investment Trusts & Funds specialist panel session with Reg Hoare, Mark Bentley, Edmund Shing and Andrew Latto, hosted by Karin Schulte

For more information, click here:

To join for free, register for the webinar here:

[jeanesy] 07/7/2023 19:00

Some more large sales going through today

[rivaldo] 04/7/2023 09:50

Singer Capital have now raised their price target to 2p (from 1.5p).

This is in line with Equity Development who've also increased to 2p.

Singer forecast 0.169p EPS this year to 30/9/23, rising to 0.197p EPS to 30/9/25. That's a current year P/E of 7.98 falling to 6.85.

Net cash rises over the period to £2.1m at 30/9/25 (remember that a large proportion of REAT's revenue is not only recurring, but paid in advance).

Singer conclude that at the 1.3p at the time of the note:

"Shares attractively valued

We believe the shares are substantially undervalued, trading on a Sep. ’24 P/E rating of only 7.9x, falling to 6.6x. We target a 10x Sep. ’25 P/E multiple, which implies a 2.0p target price (increased from 1.5p). Given the M&A strategy and opportunities to grow LaddersFree ahead of our forecasts, we see scope for the price to exceed this level over time."

[petewy] 03/7/2023 13:32

Thanks Riv

[rivaldo] 03/7/2023 10:01

Big article in yesterday's Sunday Times about asbestos in schools is likely terrific news for REAT over time.

The ST are launching a campaign for government action as there are 21,500 schools which contain asbestos and an estimated 10,000 teachers, pupils and staff have died from asbestos exposure at schools in the past four decades.

Firstly, REAT has a full asbestos removal licence, enabling it to carry out removal and encapsulation of asbestos and full reinstatement:



Secondly, via its Fidelis acquisition REAT already has a large portfolio of schools taking its services (and from memory REAT already had schools even before Fidelis was acquired). It should be easy to cross-sell as REAT have already proven they can do successfully.

Here's the article:



"The Sunday Times is campaigning for a phased removal of asbestos, starting with schools and hospitals. Government policy is to leave it in place unless it is disturbed and damaged. But with many lightweight prefabricated structures built in the 1950s, 1960s and 1970s now in a state of disrepair, this is no longer a viable policy: it could be putting schoolchildren, teachers and ancillary workers at risk. Not everyone who inhales asbestos will be affected by it, but some need to breathe in only a few fibres."

"In 2021 the DfE costed the backlog of school repairs in England at £11.4 billion. The following year the department said there was a risk of “the collapse of one or more blocks in some schools which are at, or approaching the end of, their designed life expectancy”.

[jeanesy] 30/6/2023 17:33

A cou[ple of large sells dont appear to have affected the shareprice though .

[gbenson1] 30/6/2023 13:08

Can't believe the lack of price action after a great set of results and an impressive investors presentation. Nice to see Shaun and his continual Bez quotes, squeezing my melons man!! Happy Mondays..

[ged5] 30/6/2023 12:48

There's also this interview from Mark Braund that includes this:-

"We see still significant growth opportunities primarily because we operate in a hugely fragmented market that is extremely valuable and customers are now seeking if not demanding delivery of multiple services across the country and we are one of the very very few that can do that and we will continue to try to consolidate"

[effortless cool] 30/6/2023 10:27

vikingben - presentation available here:

h ttps://www.equitydevelopment.co.uk/research/react-group-investor-presentation-interim-results-june-2023?utm_campaign=REACT%20Group&utm_medium=email&_hsmi=264607181&_hsenc=p2ANqtz-8khC8wqN2qsYZlod3WBicpFNO1uFBsqUK33VcjgFPIyXl48YYZ4XiR316D3E8QZdJAKOAYQ-yN7AF9kfHMkrdkZ0Qqhw&utm_content=264607181&utm_source=hs_email

Link wouldn't show for some reason. Just cut and paste and remove the space after the h.

[vikingben] 29/6/2023 13:56

I registered for the react investor presentation at 2pm today
I can’t find a link to get there
HELP PLEASE

[ged5] 29/6/2023 12:10

Well at least you were paying attention!

[effortless cool] 29/6/2023 12:03

I can't take credit for my revenue accuracy, unfortunately, Ged5. They had already given us that figure in the 24 April trading update.

[ged5] 29/6/2023 11:51

Quickly went through the results earlier this morning and was a little surprised at the first two posts today.

What struck me was the turnaround in the net cash inflow from operations from £773,000 outflow to £829,000 inflow. Admittedly no expert but if the cash is flowing in surely that's good.

EC impressed with your revenue estimate.

[edmonda] 29/6/2023 08:06

"Records broken and encouraging trends"

The Group has delivered record revenues and EBITDA in H1 to March 2023. The rising proportion of recurring revenues, improving margins and strong cash generation in consolidating, specialist markets has resulted in improved visibility. As the final deferred consideration will be paid during FY24, we expect net cash to rise to £3m or 34% of the NAV during FY25.

Improved visibility generated by the focus on added-value, long term contracts has enabled us to introduce estimates for FY24 and FY25. We anticipate a CAGR in revenues/EBITDA of 15.3%/35.8% respectively between FY22A and FY25F. Adj. EBITDA margins increase from 7.0% to 13.4%. Our expectation is investment in the business and/or M&A will take precedence over dividends for now. We have increased our fair value / share estimate to 2.0p (from 1.7p), a 57% premium to the current price.

Link to report:

[rivaldo] 29/6/2023 07:49

Numbers and particularly the general trends and tone of the interims look fine to me, particularly pleased with the confidence in the outlook for the full year.

In a bit of a rush, but just to say Equity Development's update includes an increase in their price target to 2p (from 1.7p).

They forecast 0.14p EPS for this year to 30/9/23, followed by 0.16p and 0.19p EPS.

They conclude:

"Records broken and encouraging trends

The Group has delivered record revenues and EBITDA in H1 to March 2023. The rising
proportion of recurring revenues, improving margins and strong cash generation in
consolidating, specialist markets has resulted in improved visibility. As such, we have introduced estimates for FY24 and FY25, with an expectation that EBITDA margins will improve to 13%+ by FY25 (vs. 7.0% in FY22A). As the final deferred consideration will be paid during FY24, we expect net cash to rise to £3m or 34% of the NAV during FY25. Our increased fair value assumption reflects our DCF and FY1 PER and price/book peer group models."

"Rise in fair value / share assumption

Improved visibility generated by the focus on added-value, long term contracts has enabled us to introduce estimates for FY24 and FY25. We anticipate a CAGR in revenues/EBITDA of 15.3%/35.8% respectively between FY22A and FY25F. Adj. EBITDA margins increase from 7.0% to 13.4%. Our expectation is investment in the business and/or M&A will take precedence over dividends for now. We have increased our fair value / share estimate to 2.0p (from 1.7p), a 57% premium to the current price."

[jeanesy] 29/6/2023 07:46

Yes still making a net loss and net debt higher. Yes Disappointing imo. I expect the shares to fall even though i agree with your statement effortless.

[effortless cool] 29/6/2023 07:16

At first sight, the numbers look a bit disappointing (which is now becoming a pattern). Amortisation higher than I expected, underlying admin expenses higher and cash lower.

So, early conclusion, worth less than I had hoped, but more than they are priced at now.

At least forecasting should get easier now we have a full HY period including LaddersFree.

[effortless cool] 28/6/2023 20:19

So, with no great confidence, I've got £9.3m revenue and £0.57m operating profit pencilled in for tomorrow.

Any alternative views?

[petewy] 27/6/2023 12:22

REACT Group plc (AIM: REAT), the leading specialist cleaning, hygiene, and decontamination company, will be conducting a live investor presentation and Q&A session covering their Half Year results for the period ended 31st March 2023.
Shaun Doak (Chief Executive Officer), Andrea Pankhurst (Chief Financial Officer) and Mark Braund (Chairman) will host the online event on Thursday 29th June at 2.00pm.