React Share Discussion Threads

[yump] 25/1/2021 07:49

The best result imo is that they have captured new customers as a result of covid, who will use them medium term, once the need for covid cleaning has gone. That doesn't necessarily mean covid will have gone, just that nobody deep cleans for flu, so if/when the effects of covid parallel flu, that market will disappear.

[zico01] 25/1/2021 07:48

Results a few days earlier than what i had in mind bodes well.
Looking forward to tomorrow.

[1gw] 25/1/2021 07:07

Results tomorrow, presentation Friday.

[sikhthetech] 24/1/2021 20:53

elpirata
"Accredited decontamination/deep cleaning being an integral part of that control"

I don't agree. I suspect most offices will be using their usual cleaning companies. I expect their normal cleaning companies have adapted over the past year.


Yump
Yes, Google 'Covid cleaning' and you'll get a long list of companies who will do it.

Where there is demand organisations/companies adapt and enter the market. No business person would sit around and miss the opportunity.

[yump] 23/1/2021 15:17

Just Google 'COVID deep cleaning services / companies'.

That answers pretty much all the questions about competition.

It may well be that REAT now has excellent management, better margins, more customers etc. in which case it could be a reasonable growth stock.

But it won't be covid that does that for them beyond next year.

The businesses that will have done really well are those that had lots of customers already and could add on higher margin work from March 2020 with those customers.

[sikhthetech] 23/1/2021 14:15

Not long to wait to see what they have to say. Months now and still no acquisitions????

Whenever people/companies see opportunities, new businesses pop up to enter the market.

The govn aims to give every adult the opportunity to have the vaccine by Sept. Covid will hopefully be history, for everyone's sake. As time goes on, people will remove masks and stop cleaning.

Also when opportunities come about, people/companies adapt and enter the market.

You would hope they have significantly more cash than the placing @ 1.5p, which raised £1.16m, especially given they have been extremely busy.

[elpirata] 23/1/2021 10:03

Vallance yesterday stating the obvious

In a further downbeat note, Sir Patrick added: “I don’t think this virus is going anywhere. It’s going to be around, I think, forever as a virus, but it will be controlled.”

Accredited decontamination/deep cleaning being an integral part of that control

[ged5] 22/1/2021 16:19

Still not bought in then Sikhthetech?

Results probably on Thursday next week which happens to be St Thomas Aquinas feast day.

Thought one of his quotes might be appropriate for you on Thursday evening.

"Sorrow can be alleviated by good sleep, a bath and a glass of wine."

:o))

[sikhthetech] 22/1/2021 15:00

Rivaldo
"Nice 500,000 share buy earlier today at 1.375p"

There you go a day later, yesterday there were around 500k of sells and more sells today but not mentioned.

;-)

[zico01] 21/1/2021 21:40

Holding firm with full year results next week. No doubt the tone of current trading for first quarter will be very bullish.

Infact we could easily have traded ahead of management expectations for December and January as there were so many Covid cases.

We might even get some positive update on the acquisition(s) the company has been on the lookout over the past couple of quarters.

The company has been very busy since March last year and will continue to remain busy for the foreseeable future.

Old news worth mentioning again:

Currently, React is carrying out Covid-19 decontamination clean-ups from everything from police vehicles to offices to manufacturing plants

Thus, it gets involved in everything from deep cleaning within the healthcare sector, hospital trusts, cleaning up after road traffic accidents, picnic sites after a bank holiday, huge fly tips by the side of the road, drug dens knee-deep in needles, flea invested properties as well as train fatality clean ups for the majority of train companies. All of this takes place right across England, Scotland and Wales using its partnership/sub-contractor network.

Beyond Covid-19

Doak is at pains to stress that React is not just a provider of Covid-19 decontamination services. “We are not just a Covid-19 clean-up company, we are a specialist deep cleaner. I believe the best out there.”

[sikhthetech] 20/1/2021 17:25

There were 346k and 417k sells only 2 days ago.

[rivaldo] 20/1/2021 16:05

Nice 500,000 share buy earlier today at 1.375p - and the buying price moved up afterwards to 1.385p for the next buyer.

[sikhthetech] 20/1/2021 12:56

Don't agree. As vaccine rolls out then offices/schools etc will re-open, there will be outbreaks but NOW there are lots of cleaning companies offering covid cleaning. Those emergency outbreaks will diminish over time.

There's also lots of new covid cleaning products available cheaply.
When opportunities come about, people/companies adapt and enter the market.

In terms of Vaccine takeup. I'm sure once they see evidence that the vaccine works or if they or a family/friend catch covid then they will soon change their mind!!

Is React a covid dependent company again then?

[elpirata] 20/1/2021 12:17

Disagree entirely. Vaccine or no vaccine, covid aint going away & its pretty clear that a material % of the population arent going to take the vaccine anyway. As lockdown eases & businesses, public arenas etc reopen, there will be more, not fewer, outbreaks and urgent requirements for deep cleaning to continue to trade. React are in the sweet spot.

[sikhthetech] 20/1/2021 12:05

Rivaldo,

The fact is as Vaccine rolls out, restrictions will be eased and demand for covid cleaning will decrease.
Also during the lockdown, workers are working from home, so no need for office deep cleaning.

Now where's those new contracts or acquisitions?

[rivaldo] 20/1/2021 11:56

Nice spot by zico01 elsewhere - the CEO is featured extensively in the Daily Express advising on how to combat COVID-19. Excellent PR for REAT:



"Coronavirus has been making its way through the UK population at an alarmingly rapid pace for almost a year, but it doesn’t seem to be getting any weaker. With a spike in cases and deaths and new strains spreading through the nation, we should all be toughening up our cleaning regimes. Express.co.uk chatted to Shaun Doak, CEO of REACT, a national specialist cleaning company, who have been working throughout lockdown to ensure adequate decontamination of NHS hospitals, workplaces, trains, public spaces and more, to find out how to clean every room in your home.

etc"

[zico01] 19/1/2021 14:53

Not bad publicity !!!!!!!!!

Coronavirus has been making its way through the UK population at an alarmingly rapid pace for almost a year, but it doesn’t seem to be getting any weaker. With a spike in cases and deaths and new strains spreading through the nation, we should all be toughening up our cleaning regimes. Express.co.uk chatted to Shaun Doak, CEO of REACT, a national specialist cleaning company, who have been working throughout lockdown to ensure adequate decontamination of NHS hospitals, workplaces, trains, public spaces and more, to find out how to clean every room in your home.

[zico01] 19/1/2021 14:47

ReactSC
@react_sc
·
2h
The Daily Express website carries some coronavirus cleaning tips from our CEO Shaun Doak on keeping every room in the house Covid-safe - including your working from home office
@Daily_Express
#Covid19 #SpecialistCleaning #REAT

[zico01] 18/1/2021 09:35

Good start to the week but the share price should be a lot higher :

For the current year expect profits of at least £600,000 and that's without any acquisitions.

For next year expect profits in excess of £1 million (again that's with no aqcn.)

Prospective PE less than 10.

Cash at the end January will be nearly £2 million.

Company only worth about £4.6 million (less cash).

Will get massively rerated in due course or will be bought out !!!!!!!!!!

[rivaldo] 18/1/2021 08:50

Good to see the share price ticking up again on very small volumes. Hopefully an indication that there's not much stock around.

[zico01] 14/1/2021 16:29

Just ticked up.
It should start to rerate with results in 2 weeks or less.The results will be ahead of expectations as per trading update in October.
More importantly the current year has started very positvely.It will be very interesting to know what the Q1 revenue is ( my opinion it will be a record ).
At this price the company is seriously under valued.

[rivaldo] 14/1/2021 12:30

Noticed a nice 500,000 share buy at 1.3225p just now.

[ged5] 13/1/2021 13:26

Thanks for the reminder, Elpirata. Yes the results could be announced any time from next week.

Just a reminder from the trading update:-

"REACT has continued to make strong progress in the period, achieving 42% organic growth in revenue to approximately £4.4m* (12 months ended 30 September 2019: £3.1m).

Growth in revenue was as the result of both strong underlying performance in the core business and demand driven by COVID-19 decontaminations. H ealthcare, rail, and facilities management sectors performed well, augmented by incremental business in other areas such as education and residential care homes.

The Board expects profit before tax for the year ended 30th September 2020 to be ahead of market expectations driven by both COVID-19 related decontaminations and a number of non-COVID-19 related projects.

The Company's financial position is robust and underlying cash generation remained strong during the year ended 30 September 2020. Net cash at 30th September 2020 was also ahead of market expectations at £1.8m*."

Just a little concerned there's been no announcements about renewal of contracts. Now that would be a good surprise to have announced sometime soon.

[elpirata] 13/1/2021 12:22

top up time...should be a shortening window to buy at these prices pre results in a couple of weeks

[nithbank] 13/1/2021 09:17

Results at end of the month. Expecting excellent figures.