React Share Discussion Threads

[mickinvest] 17/6/2020 16:24

I presume he hasn't changed his holding and just the percentage reduced due to the placing.

[ged5] 17/6/2020 16:19

Interesting way to fill out a TR1. Has more clarity though.

I see Mr Whitmore still believes in the companies prospects.

[ny boy] 17/6/2020 11:26

Heading for ....

Resistance1: 2.09p Resistance2: 2.44p

Bullish medium term imo

[zico01] 16/6/2020 22:34

From latest blog published today :

As passengers return to trains, we’ll be on hand to clean more carriages
We know that the priority for passengers on the rail network remains getting to their destinations quickly and safely. We can help to ensure that they do so in a healthy and hygienic environment. Whether it’s regular cleaning or reactive first response decontamination, we’ve got the expertise and experience for train carriage cleaning, both inside and out.

[ged5] 16/6/2020 13:26

Thanks Rivaldo. At least we don't have problems with balloons!

A little bit of affirmation:-

[rivaldo] 16/6/2020 12:46

Terrific new article about life post-COVID in South Korea, showing how this situation will be around for a long time yet.

It also raises questions about how the West can possibly implement even a vaguely similar level of control given the desire for freedom in the West, and the lack of personal/social responsibility of many compared to the East. If even South Korea are having these problems, then what are the prospects for Europe, the USA etc....

[sikhthetech] 14/6/2020 21:01

zico,

What are the management expectations for this year?

It would have been prudent to announce the results with the investor presentation.

[zico01] 14/6/2020 12:55

Not long before results

It's the current trading and the outlook for remainder of the year that will drive the price more higher.

Recent abstracts

Thanks to our experience, we have security clearance to work in some of the most sensitive possible areas. We work with several large Tier 1 or blue-chip organisations, mainly in the healthcare, judiciary, rail, road and social housing sectors. We also support many large facilities management companies. And in recent weeks, we’ve seen a spike in demand for our services. Many organisations now need to undertake deep cleaning and decontamination of potentially infected premises.

We already have a roster of work from a large community of Tier 1 & Blue-chip organisations, and this list is growing all the time. The work we do is challenging and valued; it therefore pays well, and we pay our partners on time.

In addition, we have augmented the Company's own operator network by establishing agreements with several small high-quality subcontractors, which has allowed the Company to increase capacity and geographical reach using a flexible and more efficient cost base.

Looking forward to the results.

[scottishfield] 12/6/2020 18:36

Good finish.

[cooltools] 12/6/2020 16:11

Added a few more, just before the uptick. Def had my fill now (a nice round number), time to sit back and relax...

[andyview] 12/6/2020 11:19

I’ve added a few more today, I’ve been a lth and have been impressed with the transformation and new management impact. I’d expect to see the business to continue to grow new contracts and I like the recurring revenues. Not without risk of course but then what is.

Gla

[zico01] 11/6/2020 19:24

I bought more today on the dip ,excellent value at these prices booming sector no other micro cap / small cap listed company in this business.

The company was already busy prior to covid-19 :


From 30/01
The Company has retained its most significant clients, and whilst the public sector remains an important focus for the Company it has also expanded its reach in the private sector. A new framework agreement has been signed with an additional NHS Trust and REACT has been added to a number of approved-supplier lists for Tier-1 clients. This has led to the Company working for a broader client base from which it has the potential to grow organically. In addition, we have augmented the Company's own operator network by establishing agreements with several small high-quality subcontractors, which has allowed the Company to increase capacity and geographical reach using a flexible and more efficient cost base.

New business activity has resulted in the Company taking on larger pieces of bespoke work. Examples include the cleaning of a large food production factory and specialist lift cleaning. As a newly appointed supplier, the company has successfully been engaged to carry out an ongoing clean on behalf of a large facilities management company. Furthermore, in addition to the large London hospital where our teams have been working for over two years, we now are working with another two hospitals, one in the private sector and one in the public sector.

The most recent and significant new business has been the award of a half a million pound contract to provide specialist deep cleaning services to one of the Company's Tier-1 clients in the rail sector. Announced on 23 January 2020, this contract demonstrates that the quality and capability of our specialist cleaning teams is recognised as amongst the very best in the industry.

After covid-19 from March they obviously got even more busier.

[ged5] 11/6/2020 18:27

Another late reported 1m from this afternoon.

Yours Cooltools?

[sikhthetech] 11/6/2020 16:20

yump,

"I still think the best long term result here is for the acquisition of new customers that stay with them after covid has gone."

Absolutely, recurring income from continuous contracts. Currently, they only have 50% revenues from continuous contracts.

How much of future potential is already in the sp?
What are Management expectations?

[yump] 11/6/2020 15:56

It was a really good buy for anyone 0.6-0.8p on the basis of a flat chart and the various announcements about improving financials, strategy etc.

Sometimes they work out really well. Sometimes they just stay subdued because everyone has lost interest and its taken them so long to get their act together.

I still think the best long term result here is for the acquisition of new customers that stay with them after covid has gone.

Still not sure if covid work is higher margin, or whether it will involve higher costs. The only evidence of that will be some figures and projections.

Presumably they could absorb extra volume initially, which might be the reason for the announcement that there will be profit at interims. Increased cleaning just taking up existing capacity - almost straight to the bottom line.

[cooltools] 11/6/2020 15:45

Yes, I liked that too. Have just added another 1m - in for a penny, in for a pound...

Expecting interims to simply give actual figures to what we already know, i.e. that they are in profit at end of March. Would be nice if they could give unaudited net profits to end of April and end of May (go on REAT, we know you're reading!) which would really point the way.

Presumably the share price is down partly due to worries about coming out of lockdown - ironic, as that's going to be when REAT's deep cleaning is going to be in high demand. Plus, if covid-19 hadn't happened, they would still be a strong company to keep. Considering this a fairly safe bet - little risk of going much lower, upside potential very high.

Now expecting share price to meander between 1.5 and 2p for a while, then pick up towards end of the year.

[yump] 11/6/2020 15:32

So way more interest in debating holdings than numbers ?
Has anyone any idea at all about numbers ?

[ged5] 11/6/2020 15:29

This is clearly a company in its infancy. From the answers to the questions I found this to be very encouraging:-

"REACT are engaged directly with a number of Tier 1 and Blue-chip Customers where we sit alongside one or two of the large enterprise competitors. This has expanded more recently with Customer’s contingency plans for dealing with COVID. We are therefore rubbing shoulders with and in some cases beating the big firms, which is a testament to the work REACT do with boots on the ground."

[jeanesy] 11/6/2020 14:48

well the q+a is up on the investors website from yesterday. looks like they have tried to answer them all even if some say , not allowed to comment. the worrying one for me is about forecasts for the year... they dont have one ?! I will remain firmly on the sidelines

[ged5] 11/6/2020 14:47

Just had an email from Investor Meet.

All the questions submitted with answers have been published.

[ged5] 11/6/2020 14:40

Ah yes that makes sense. Just done the figures and it does give the figure of about 77m.

Just shows how unclear the holding announcements are.

Well done Sherlock!

Edit:

Having considered your post although it would appear that the previous situation was 18.52% of 275 407 753. That is not the number that should have appeared on the form. If the company had revised the number of shares on their website then they must have known that Octopus had 18.52% of 415 521 352. In other words Rivaldo was correct earlier when he stated the RNS contained a mistake. The problem is the rules dictating what should appear on a form.

I will contact the company tomorrow. I will also contact the authority that determines what should be reported on these forms. I will ask for a different format which provides clarity.

Because of the stupid form I've wasted my time today on an irrelevant point because of the inaccuracy.

Sorry Yump, for discussing such an irrelevant point. Read the questions and answers section of the presentation to get an inkling of the point you raised

[1gw] 11/6/2020 14:33

No Ged5, that was the correct shares in issue when they gave their previous holdings notice (as of 3rd April 2018), which is what they were reporting in that box on today's holdings notice.

If they then participated pro-rata in the August 2018 placing of 140m shares their % interest would have remained unchanged, their shares held would have gone up (by 18.52% of 140 million) and they wouldn't have had to give a new holdings notice because their % holding of voting rights was unchanged.

[ged5] 11/6/2020 14:25

Thanks 1gw!

If you look at the recent placing announcement and compare with previous announcements there is a section on Total Voting Rights.

We heard yesterday how this management have improved relations with customers and are now collecting past debts. This management mean business. It seems previous management were sloppy at best!

That just leaves one problem: the amount of total voting rights in the previous holding section of today's RNS.

[1gw] 11/6/2020 14:09

And the obvious way to reconcile the apparent Octopus numbers with the lack of TR1 for an increase from the 51m shares / 18.52% disclosed by Octopus as of 3rd April 2018 is that Octopus ended up participating in the August 2018 placing so as to avoid dilution from the 18.52%.