React Share Discussion Threads

[rivaldo] 08/3/2021 10:29

Nice 600,000 share buy at the full 1.8p offer just now.

[rivaldo] 01/3/2021 08:30

Good start to the week.....

[ged5] 23/2/2021 16:06

Nice recovery so far.

[rivaldo] 19/2/2021 09:30

Good to see the full 2p offer price now being paid for a small buy this morning.

3800, you could indeed have asked questions, and one or two attendees did. Also, the sound was fine for me, so the recording should be better for you (though there's really not much to listen back to!).

[effortless cool] 18/2/2021 20:01

I attended but there was nothing new, really. They have done at least two other investor presentations recently, so there were hardly any questions, either.

[3800] 18/2/2021 19:48

I don't think we were given the chance, the whole thing could be watched on line and there is a recording which you can watch but the sound is so bad I gave up after 5 minutes.hxxps://www.investormeetcompany.com/investor/meeting/agm-2

[vikingben] 18/2/2021 19:36

Did anybody here attend?

[rivaldo] 18/2/2021 10:22

A reminder that the InvestorMeet AGM is starting at 11.00. I assume there'll be a chance to answer questions after the formal AGM business, but I'm not sure I've got anything left to ask :o))

[zico01] 18/2/2021 07:40

AGM statement >>> not strong enough to send the price any higher


"Mark Braund, Executive Chairman , will make the following statement at the AGM:

"REACT has continued to trade well since the period ended 30 September 2020 with profit and cash generation continuing to be stronger than the prior year. Margins and operational efficiencies have continued to improve.

The impact of the current COVID-19 pandemic continues to be unpredictable however we remain well positioned to support our customers' critical requirements and have a growing pipeline of business to execute on. We remain cautiously optimistic for the remainder of the year.

Our strategy remains to build a leading position across our business through organic growth and, if the right opportunities present themselves, via strategic acquisitions to support our goal of becoming the country's most trusted name in the provision of specialist cleaning, decontamination, and hygiene services."

[rivaldo] 18/2/2021 07:24

The AGM statement today confirms continued good trading this year - with a further strong hint about on the likelihood of acquisitions:



"Mark Braund, Executive Chairman , will make the following statement at the AGM:

"REACT has continued to trade well since the period ended 30 September 2020 with profit and cash generation continuing to be stronger than the prior year. Margins and operational efficiencies have continued to improve.

The impact of the current COVID-19 pandemic continues to be unpredictable however we remain well positioned to support our customers' critical requirements and have a growing pipeline of business to execute on. We remain cautiously optimistic for the remainder of the year.

Our strategy remains to build a leading position across our business through organic growth and, if the right opportunities present themselves, via strategic acquisitions to support our goal of becoming the country's most trusted name in the provision of specialist cleaning, decontamination, and hygiene services."

[effortless cool] 17/2/2021 17:41

Seems very soon for another update, but I have signed up just in case.

[1gw] 17/2/2021 17:27

Anybody expecting an update tomorrow? i.e. will we get a presentation or are REAT just using InvestorMeet to run the AGM itself? Soon know I suppose.

[zico01] 16/2/2021 14:02

Revenue and profits will be a record for the 1st 4 months no doubt.Cash should be in the region of £2 million up from £1.8 million at the end of September 20.

[rivaldo] 16/2/2021 12:31

New blog post from yesterday FYI about cleaning post-pandemic:



Extracts:

"What does a post-pandemic future hold for cleaning?

Specialist cleaning for Covid-19 was reactive, but a post-pandemic future includes preventative cleaning regimes using barrier products."

"Specialist cleaning lessons learnt in the pandemic

It’s unsurprising that commercial cleaning is one of the industries that saw an increase in demand for services throughout the pandemic. The sector quickly adapted existing technologies and methods to cope with the new virus. We (and other companies) reacted to the uncertainty felt by all industries, and the enhanced cleaning protocols that Covid-19 demanded. Most professional cleaning businesses were forced to adapt to focus mostly on providing decontamination solutions and saw the demand for the regular projects drop off.

Thankfully, although incredibly infectious, the virus that causes Covid-19 is relatively straightforward to get rid of on surfaces, even in its new more infectious variants. As we know, hot water and soap is a simple way to kill it on human skin. And to eradicate it on hard surfaces, thorough deep cleans and fogging have proven efficient in eliminating the virus from a building. Here at REACT, we used tried and tested methods. Indeed, our robust infection control methodology consists of four steps: test, clean, disinfect, and test again."

"Specialist cleaning using barrier products can be a way forward

In this last regard, one critical development is adopting a preventative approach to cleaning using barrier products. Such innovations mean cleaning professionals can guarantee a long-term surface coating on which bacteria, viruses and other pathogens can’t thrive. Critically, regular cleaning and disinfecting does not immediately remove this barrier, and some manufacturers claim this protective layer can last for up to 90 days. By building the barrier coatings into the deep cleaning regime, and re-applying the coating regularly, cleaning professionals can provide reassurance to their clients."

[zico01] 16/2/2021 09:26

AGM on Thursday >>> looking forward to a solid trading update and hopefully more gains.

Will be very nice to break 2p !!!

[rivaldo] 15/2/2021 22:39

Yep, great to see that late 100,000 buy at 2p.

[1gw] 15/2/2021 16:21

And there it is. 2p paid.

[1gw] 15/2/2021 14:18

Looking very strong again. Not far from 2p now.

[rivaldo] 15/2/2021 08:23

As promised, here are my full notes from the excellent presentation.

Management here 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, so there will be NO dilution – and will be earnings enhancing.

REAT’s markets are favourable as they’re fragmented and are consolidating, with lots of smaller operators.

The core business achieved excellent revenue and gross profit growth in the last year – despite the effects of COVID-19 on that core business and excluding the £441k COVID-19 revenues.

25 key customers have “huge untapped potential” for additional revenues. For example, one rail customer has grown from £550k revenues to £980k in one year. Another in a different sector has grown from just £13k to £475k in the same period. And an FM customer has grown from £45k to £170k with “more to come”.

Allenby Capital’s forecast revenue increase is described as “relatively moderate”.
It’s “very hard” for other cleaning companies to replicate what REAT do in contract maintenance.

Finding additional staff is easy as they’re plentiful – REAT don’t even have to advertise due to email applications. Staff churn is low. And top operators/specialists earn between £30k-£50k. Partner network revenues are a growing and valuable asset, but only around 20% of Reactive revenues, so relatively small at present. The average response time is only 3hours and 42 minutes.

As regards rail, REAT do NOT do the quick 10 minute turnarounds which would fluctuate with usage – they do the obligatory periodic deep cleans which have to be done regardless of passenger numbers.

The CEO and FD are not highly paid. They will get bonuses if the company does well, and are rewarded primarily via an EMI-efficient LTIP with share price hurdles up to 2.8p.

[sikhthetech] 14/2/2021 15:35

elpirate,

The current share price is around the level it was around July last year before it fell back down to 1p level. During July there was a 10milion sell, which was stated as being the reason for the fall. Gill Leates 8m holding isn't much difference from that sell.

There was also a placing at 1.5p early July and the share price fell back shortly after. It's possible those who took part in that placing will take the opportunity to take profits.

[elpirata] 12/2/2021 11:03

bit slow off the mark there sikh, I expected you to jump down the throat at 1.6% ;-)

Its a cracking investment, did you miss out on buying the lows?

[ged5] 12/2/2021 10:58

This is beginning to look like a good investment. Not as much time these days. Helping out with our 6 yr old grandson's home schooling, so thanks for all the updates.

It's becoming quite exciting!

[rivaldo] 12/2/2021 10:42

Nice £20,000 share buy at 1.84p just reported, and 3.6m shares traded already today.

[elpirata] 12/2/2021 10:35

possibly because it only represents a non material 1.6% of the shares in issue