React Share Discussion Threads

[rivaldo] 09/2/2021 15:14

An excellent presentation. They really look like a "team", working together with the same goals and ambitions having transformed the company from the prior management.

This Q1 has been "the best quarter we've ever had". The £505k PAT forecast is "prudent and achievable". And those quotes are from the CFO, who's normally the most consevative member of the management team.

The cash pile is up to £2m now.

Acquisitions will be of a decent size - there's £3m of firepower including the invoice discounting facility - will be earnings enhancing, and there will be no dilution.

I'll write up my notes later, but there's more good stuff.

[amrishbhim] 09/2/2021 15:13

I don't call it a spike, maybe you should go to specsavers

[1gw] 09/2/2021 15:07

Yes, another strong presentation. Having said that, I couldn't resist taking some profit given the spike today.

[sikhthetech] 09/2/2021 15:06

So the share price is back to where it was last May before the gradual drop to 1p.

[babbler] 09/2/2021 15:04

No placing coming. Nice presentation.

[scooper72] 09/2/2021 14:28

Have had to buy in after a 13 percent jump in the price but after listening last night and currently to the zoom presentation still seems worth jumping in with a small holding.

[davidosh] 09/2/2021 10:08

Thank you....struggling with lockdown as it is just me and Ollie (my nearly 11yr old shih tzu) so Mello is a good distraction and helps me feel connected to the outside world.

I am sure many feel the isolation and the weather makes it worse but hopefully a couple of months and we will have some sort of post Easter release from hibernation.

[mickinvest] 09/2/2021 10:01

Great work David as always, hope you're well?

[davidosh] 09/2/2021 09:53

Just to let you all have an update.

The Gamechanger session went very well but was really an intro to the full one hour presentation with Q&A this afternoon at 2pm. To register for that one just sign in here

As at 9.30am and as registration was open immediately after the show last night there are already 82 signed up to attend this afternoon. All are welcome and there is no charge.

If any of you cannot attend this afternoon but would like a question to be asked you are welcome to add it here and I will do my absolute best to get it asked time permitting of course. The management team have said they will allow us to put additional Q&A onto the website after the full presentation so it should be very comprehensive.

The next MelloMonday show will be on the 22nd February and anyone buying an annual pass gets immediate access to all recordings of the last ten shows and the huge numbers of shows planned for this year will then be free to access.

[effortless cool] 09/2/2021 09:20

I have always been surprised by the level of churn here, given the quite small free float. However, I would imagine that Mello money will be a bit more "sticky", since I think they represent more of a 'buy and hold' type investor. Hopefully, that will help create a bit of scarcity in future.

[rivaldo] 09/2/2021 08:54

The m/cap is now £9.1m at 1.85p, but the EV net of the £1.8m cash pile is only £7.3m.

This, for a company now forecast to make £500k PAT this year to 30th September, still strikes me as rather good value.

Especially for a company which is growing those profits as fast as REAT is. And when that forecast is described as conservative.

[ged5] 09/2/2021 08:43

Don't know what was said but NICE!

[mickinvest] 09/2/2021 08:41

I like it, does take us back to around fair value now in my view after being under a penny not that long ago with my year end target of around 2.5p. Need to start winning some large orders to reach 2.5p.

[avsome1968] 09/2/2021 08:15

Market likes it that's what counts.

[1gw] 09/2/2021 08:08

Very strong start. Is that Mello driving this morning's buying?

[le4r] 09/2/2021 08:03

Mainly just educational to those not aware of the business. I'll summarise main points shortly

[rivaldo] 09/2/2021 07:21

Cheers LE4R. Was anything said of particular interest or that was new? Hopefully it should attract some further interest here.

I note from today's RNSNON that there will be an additional presentation today from 2.00-3.00, and it seems to be free to join:

[le4r] 08/2/2021 22:08

Nice feature on Mello this evening by Chairman Mark Braund. For anyone who is a Mello pass holder, there's a follow-up,More in-depth session with CFO etc, tomorrow at 2pm

[sikhthetech] 08/2/2021 11:41

COVID-19 rarely spreads through surfaces. So why are we still deep cleaning?

[rivaldo] 08/2/2021 09:01

Worth referencing the post-results Allenby Capital note from only two weeks ago, which forecasts a "conservative" £505k PBT to this September:



Summary:

"A year of strong growth and sustainable profitability

REACT Group plc (REACT),the specialists in deep cleaning services for customers in the public and private sectors, has announced encouraging full year results, marginally ahead of our increased forecasts and a significant turnaround from the losses reportedin previous years.

Cash balances at the year-end were also substantially higher than forecast at £1.8m. The new management team has delivered on its promises in what has been a challenging year and we continue to remain very positive on the prospects for the Group.We have introduced forecasts for FY2021 but at this stage,with so much uncertainty we have set our expectations prudently.

Nevertheless,the year has started strongly and our projections, supported by a high level of recurring revenueand margin improvement, still anticipates a more than doubling of EBITDA and could be raised as REACT progresses through the year.

–A year of promises delivered– Under its new management team,REACT has delivered a strong set of results for the year ended September 2020. Previous year losses have been turned around and a maiden profit reported,driven by strong trading across all three Group segments, Contract Maintenance(CM), Contract Reactive (CR) and Ad Hoc(AH), the latter including REACT’s COVID-19 decontamination work, which management has separated out and accounted for c.10% of revenue.

–Strong revenue growth and much improved margins– With a more efficient sales and marketing process,revenues in each segment were strong with CM reporting a rise of 74%, AH (boosted by COVID work) up 136% while CR reported a more modest rise of 1% being impacted by COVID restrictions on its work. However, gross margins still improved in this segment as did margins in the other two. Overall, margins improved by 480bps to 33.2%, now more representative of likely margins going forward.

–New management team reinvigorating the business and prospects- We would reiterate that historically, REACT had been held back by poor management and an almost complete lack of investment in sales and marketing and has therefore only scratched the surface of potential demand for its specialist services. REACT is still an early-stage company but these results give an indication of what the new team can deliver and our forecasts for 2021 reinforce this belief.

–A strong start to the year but forecasts are setprudently– Management reports that the Group has made a strong start to the year with profit and cash generation in Q1 ahead of the same period last year. That said, with so much uncertainty around we have pitched our forecasts for FY2021 at a conservative level and these will be reviewed as we progress through the year. Nevertheless, we still anticipate a reasonable level of revenue growth, (c.18%), a further modest improvement in gross margins and a relatively flat fixed cost base. All of which lead us to anticipate EBITDA moving up from £261k to £555k with solid cash generation being achieved. We look forward to another good year from REACT."

[truffle] 03/2/2021 10:44

Reading through the report and accounts it seems that institutional/individual/management shareholders own approx. 82.50% of the issued shares.
Leaving the 'free float' at a very minimal level
But DYOR

[rivaldo] 02/2/2021 15:33

The InvestorMeet presentation and answers to shareholder questions are now up on their web site - you have to register (it's free!):

[zico01] 02/2/2021 12:34

ReactSC
@react_sc
·
1 Feb
Our CEO Shaun Doak answers the question of what 2021 will look like for the commercial cleaning industry in the online version of Cleaning Hygiene Today. Covid-19 and its new highly infectious strains feature heavily @CHTToday

[rivaldo] 02/2/2021 08:05

Nice to see an early 100,000 buy at 1.79p - well above the 1.75p published offer price. Keen.

[zico01] 01/2/2021 23:11

Anyway it was enjoyable session today !!!