We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
React Group Plc | LSE:REAT | London | Ordinary Share | GB00BPCTRB97 | ORD 12.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 76.00 | 75.00 | 77.00 | 76.00 | 76.00 | 76.00 | 1,568 | 08:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Bldg Clean & Maint Svc, Nec | 19.58M | 50k | 0.0000 | N/A | 811.41M |
TIDMREAT
RNS Number : 3042E
React Group PLC
29 June 2023
29 June 2023
REACT Group plc
("REACT", the "Group" or the "Company")
Half Year Results FY 2023
REACT Group plc (AIM:REAT.L), the leading specialist cleaning, hygiene and decontamination company announces its unaudited results for the six-month period ended 31 March 2023.
Financial Summary
HY 2023 HY 2022 ---------------------------------------- -------- -------- Revenue (GBP'000) 9,320 5,125 Gross profit (GBP'000) 2,484 1,156 Gross profit margin 26.7% 22.6% Adjusted EBITDA (GBP'000)* 927 162 Adjusted profit before amortisation of acquired intangible assets and exceptional items (GBP'000) * 773 88 Net loss for the period (GBP'000) (86) (92) Adjusted earnings per share (basic) (pence) 0.07 0.02 Adjusted earnings per share (diluted) (pence) 0.07 0.01 Net debt (excluding lease liabilities) (GBP'000) 257 43
*These measures are explained and reconciled in the Alternative Performance Measures section in Note 5 below.
Highlights (including post period highlights):
-- Revenue increased by 82% to GBP9,320k (2022: GBP5,125k) -- Adjusted EBITDA up materially to GBP927k (2022: GBP162k) -- Gross margins up at 27% from 23% in H1 2022
-- GBP800k multi-year contract win to provide services, through a coordinated programme from all three segments of the business to a large fast-service restaurant chain across c. 350 sites in the UK
-- GBP500k 18-month contract with a sizeable Midlands-based school alongside numerous contract renewals which include another school worth around GBP540k over three years and an annual contract with an NHS Trust worth almost GBP200k
-- Improved mix of recurring revenue as well as higher margins provides the business with greater visibility and a more dependable revenue stream
Commenting on the results Shaun Doak, Chief Executive Officer of REACT, said:
"We are delighted to report a strong trading performance for the business with revenue and profit at record levels. All three divisions have traded well in the period and this momentum has continued into the second half.
"The Group has benefitted from notable customer wins including an GBP800k contract to provide services, through a coordinated programme from all three segments of the business to a large fast-service food chain across all its sites in the UK. This major contract win illustrates how strategic acquisitions provide significant cross-selling opportunities for the Group once successfully integrated.
"The enhanced mix of recurring revenue and increased margins provides the business with greater visibility and a more dependable revenue stream. This combined with the strength of our pipeline for the remainder of the year provides the Board with cautious optimism and reinforces its confidence in achieving full-year results in line with market expectations.
"On behalf of the Board, I would once again like to thank all my colleagues for their ongoing support, commitment, tenacity and quality of work."
For more information:
REACT Group Plc Shaun Doak, Chief Executive Of cer Tel: +44 (0) 1283 550 Andrea Pankhurst, Chief Financial Officer 503 Mark Braund, Chairman Singer Capital Markets (Nominated Adviser / Broker) Phil Davies / James Moat (Corporate Finance) Tel: +44 (0) 207 496 3000 IFC Advisory ( Financial PR / IR) Graham Herring / Zach Cohen Tel: +44 (0) 20 3934 6630
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
RESULTS SUMMARY & STRATEGY
Strategy
The REACT business performed strongly during the six months to 31 March 2023, trading in the period has been robust and the positive contract win momentum has continued with good sales growth across all three divisions of the business.
The Group achieved record revenue and profit growth during the six-month period. The combination of growing recurring revenue as well as higher margins provides the business with greater visibility and a more dependable revenue stream. Recurring revenue is key to our strategy and the contract maintenance segment of the business typically allows customers to purchase our services over a contracted period of several years. Within these contracts, price increases are implemented at certain points to mitigate wage-inflation pressures. The Group has benefitted from its ability to cross sell other business services into existing and new customers. Evidence of this is the recent contract win, with an estimated value of GBP800k in the current financial year, to provide services, through a coordinated programme from all three segments of the business to a large fast-service food restaurant across all its sites in the UK. This positive contract win momentum has continued, with good sales growth in all three divisions of the business across the six-month period.
In May last year, the Group acquired LaddersFree, one of the largest commercial window cleaning businesses in the UK. The business has been integrated well and its revenues have grown by over 25% in its first year as part of the Group. This has been achieved despite the gloom on the UK high street resulting in customer site closures and economic pressures over the last year. The Board is looking to scale the business whilst professionalising its operating systems. LaddersFree continues to be awarded contracts to provide services for retailers, restaurants, hotels and car dealerships amongst others. The division continues to attract higher margin contracts helping to deliver a considerable contribution to Group profits.
It has now been over two years (March 2021) since the Group acquired Fidelis Contract Services ("Fidelis"), a contract cleaning and facilities maintenance business. Fidelis had a slightly slower start to H1, this then improved greatly reporting record revenues over the latter stages of the six-month period. Fidelis has been awarded a GBP500k 18-month contract with a sizeable Midlands-based school and alongside this, numerous contract renewals which include another school worth around GBP540k over three years and an annual contract with an NHS Trust worth almost GBP200k.
The Fidelis business is now generating twice as much revenue as it was in the 12-months prior to acquisition, demonstrating not only its strategic value to the Group but also the manner in which the Company has been able to integrate and grow the business, adding a more scalable management team and more sophisticated systems to support its continuing growth ambitions.
The REACT business, which primarily provides a solution to emergency and specialist cleaning situations, both through long-term framework agreements and on an ad-hoc basis, has had a buoyant period of business as its bespoke services remain in demand. Margins remain a focus of this division as these continue to rise as a result of a changing mix of business.
People
The Group performs bespoke training and development projects and, as a consequence, has been able to develop the roles of a number of important personnel and promote internally. As an aspiring expanding Group, it continues to take efforts to invest in its people to promote greater performance and job satisfaction of all employees.
Due to the nature of REACT's service delivery department, this is undertaken by people who are considered experts in their field, supported by a dedicated customer-centric team, who have now fully adapted to working conditions since all COVID restrictions have been lifted. The strong financials reported in H1 are bolstered by the efforts of the entire team and each individual has played a crucial role in our collective achievements.
I would like to take this opportunity to extend our gratitude and appreciation to our esteemed colleagues for their unwavering dedication and hard work. It is through their collective efforts and commitment that we have achieved our targets during this period and reached new heights.
Outlook
Trading in the second half of the year has continued well building on the momentum of the first half. The enhanced mix of recurring revenue and increased margins provides the business with greater visibility and a more dependable revenue stream. This combined with the strength of our pipeline for the remainder of the year provides the Board with cautious optimism and reinforces its confidence in achieving full-year results in line with market expectations.
Shaun Doak
Chief Executive Officer
29 June 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 March 2023
Unaudited Unaudited Audited 6 months 6 months Year ended ended ended 30 September 31 March 31 March 2022 2023 2022 Note GBP'000 GBP'000 GBP'000 Continuing Operations Revenue 9,320 5,125 13,671 Cost of Sales (6,836) (3,969) (10,414) ---------- ---------- -------------- Gross Profit 2,484 1,156 3,257 Administrative expenses (2,499) (1,241) (3,768) Adjusted operating profit before amortisation of acquired intangible assets and exceptional items 844 91 775 Amortisation of acquired intangible assets (821) (147) (743) Exceptional costs (38) (29) (543) ------------------------------------- ----- ---------- ---------- -------------- Operating loss (15) (85) (511) Finance cost (71) (3) (56) Corporation tax charge - (4) (134) ---------- ---------- -------------- Loss for the period (86) (92) (701) Other comprehensive Income - - - Loss for the financial period attributable to equity holders of the company (86) (92) (701) ========== ========== ============== Basic and diluted profit per share 4 Basic loss per share (0.01)p (0.02)p (0.09)p ========== ========== ============== Diluted loss per share (0.01)p (0.02)p (0.09)p ========== ========== ============== Adjusted basic earnings per share 0.07p 0.02p 0.08p ========== ========== ============== Adjusted diluted earnings per share 0.07p 0.01p 0.07p ========== ========== ==============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2023
Unaudited Unaudited Audited As at 31 As at As at 30 March 31 March September 2023 2022 2022 Assets Note GBP'000 GBP'000 GBP'000 Non-current assets Intangibles - Goodwill 4,209 1,854 4,209 Intangibles - Other 4,859 881 5,680 Property, plant and equipment 185 168 203 Right-of-use assets 73 68 100 Deferred tax asset 244 240 244 ---------- ---------- ----------- 9,570 3,211 10,436 Current assets Stock 11 10 11 Trade and other receivables 4,301 2,305 4,254 Cash and cash equivalents 650 (43) 979 4,962 2,272 5,244 Total assets 14,532 5,483 15,680 ========== ========== =========== Equity Shareholders' Equity Called-up equity share capital 2,644 1,270 2,624 Share premium account 10,910 6,028 10,905 Reverse acquisition reserve (5,726) (5,726) (5,726) Capital redemption reserve 3,337 3,337 3,337 Merger relief reserve 1,328 1,328 1,328 Share based payments 68 33 44 Accumulated losses (4,259) (3,564) (4,173) Total Equity 8,302 2,706 8,339 ---------- ---------- ----------- Liabilities Current liabilities Trade and other payables 4,176 2,309 4,230 Loans and other borrowings 161 - 161 Lease liabilities within one year 50 46 57 Corporation tax 195 - 271 ---------- ---------- ----------- 4,582 2,355 4,719 Non-current liabilities Loans and other borrowings 746 - 808 Lease liabilities after one year 34 30 53 Other creditors 868 392 1,761 ---------- ---------- ----------- 1,648 422 2,622 Total liabilities 6,230 2,777 7,341 ---------- ---------- ----------- Total Liabilities and Equity 14,532 5,483 15,680 ========== ========== ===========
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 March 2023
Unaudited Unaudited Audited 6 months 6 months Year ended ended ended 31 March 31 March 30 September 2023 2022 2022 GBP'000 GBP'000 GBP'000 Net cash inflow/(outflow) from operations 829 7 (773) Cash flows from financing activities Proceeds of share issue 25 - 6,500 Expenses of share issue - - (269) Lease liability payments (37) (27) (80) Bank Loans (62) (50) 902 Interest paid (71) - (56) Net cash (outflow)/inflow from financing activities (145) (77) 6,997 ---------- ---------- -------------- Net cash from investing activities Disposal of fixed assets - - 20 Capital expenditure (37) (64) (115) Acquisition of subsidiary (938) (525) (7,776) Exceptional costs paid (38) (17) (543) Net cash outflow from investing activities (1,013) (606) (8,414) ---------- ---------- -------------- Net decrease in cash, cash equivalents and overdrafts (329) (676) (2,190) Cash, cash equivalents and overdrafts at beginning of period 979 633 633 Cash on acquisition of subsidiaries - - 2,536 Cash, cash equivalents and overdrafts at end of period 650 (43) 979 ========== ========== -------------- Analysis of cash, cash equivalents and overdrafts: Cash at bank and in hand 1,379 214 1,529 Overdrafts (729) (257) (550) ------- 650 (43) 979 ======= ======= ======= Reconciliation of profit for the period to cash outflow from operations Unaudited Unaudited Audited 6 months 6 months Year ended ended ended 31 March 31 March 30 September 2023 2022 2022 GBP'000 GBP'000 GBP'000 Loss for the period (86) (92) (701)
Decrease/(increase) in stocks - 2 1 (Increase)/decrease in receivables (47) (206) (2,155) Increase in payables 1 38 374 Depreciation and amortisation charges 904 219 921 Impairment charge - - 567 Finance costs 71 3 56 Tax charge/(credit) - 4 134 Acquisition assets acquired (excluding cash) - - 119 Exceptional acquisition costs 38 29 (24) Profit on disposal of fixed assets - - (6) Share based payment 24 10 21 Tax paid (76) - (80) ------------ ---------- ----------------- Net cash inflow from operations 829 7 (773) ============ ========== =================
Consolidated Statement of Changes in Equity
For the six months ended 31 March 2023
Share Merger Capital Reverse Based Share Share Relief Redemption Acquisition Payments Accumulated Total Capital Premium Reserve Reserve Reserve Reserve Deficit Equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 30 September 2021 1,270 6,028 1,328 3,337 (5,726) 23 (3,472) 2,788 --------- --------- --------- ------------ ------------ ---------- ------------ -------- Share based payments - - - - - 10 - 10 Loss for the period - - - - - - (92) (92) At 31 March 2022 1,270 6,028 1,328 3,337 (5,726) 33 (3,564) 2,706 --------- --------- --------- ------------ ------------ ---------- ------------ -------- Issue of shares 1,354 4,877 - - - - - 6,231 Share based payments - - - - - 11 - 11 Loss for the period - - - - - - (609) (609) At 30 September 2022 2,624 10,905 1,328 3,337 (5,726) 44 (4,173) 8,339 --------- --------- --------- ------------ ------------ ---------- ------------ -------- Issue of shares 20 5 - - - - - 25 Share based payments - - - - - 24 - 24 Loss for the period - - - - - - (86) (86) At 31 March 2023 2,644 10,910 1,328 3,337 (5,726) 68 (4,259) 8,302 --------- --------- --------- ------------ ------------ ---------- ------------ --------
Notes to the interim financial statements
1. Basis of preparation
These consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and on a historical basis, using the accounting policies which are consistent with those set out in the Group's annual report and accounts for the year ended 30 September 2022. The interim financial information for the six months ended 31 March 2023, which complies with IAS 34 'Interim Financial Reporting' were approved by the Board of Directors on 29 June 2023.
The unaudited interim financial information for the six months ended 31 March 2023 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 30 September 2022 are extracted from the statutory financial statements which have been filed with the Registrar of Companies and contain an unqualified audit report and did not contain statements under Section 498 to 502 of the Companies Act 2006.
2. Principal Accounting Policies
The principal accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 September 2022.
3. Segmental Reporting
In the opinion of the Directors, the Group has one class of business, being that of specialist cleaning and decontamination services. Although the Group operates in only one geographic segment, which is the UK, it has also analysed the sources of its business into the segments of Contract Maintenance, Contract Reactive or Ad Hoc work.
Unaudited 6 months ended Unaudited 6 months ended 31 March 2023 31 March 2022 Contract Contract Ad Total Contract Contract Ad Total Maintenance Reactive Hoc Maintenance Reactive Hoc Work Work Work Work Work Work GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Revenue 6,807 1,181 1,332 9,320 3,268 933 924 5,125 Gross profit 1,883 296 305 2,484 520 281 355 1,156 Profit before amortisation and exceptional items 689 36 48 773 38 20 26 84 Total Assets 13,213 450 869 14,532 2,466 1,334 1,683 5,483 ------------- ---------- -------- -------- ------------- ---------- -------- -------- Total Liabilities (5,665) (193) (372) (6,230) (1,249) (675) (853) (2,777) ------------- ---------- -------- -------- ------------- ---------- -------- -------- 4. Earnings per Share (basic and adjusted)
The calculations of earnings per share (basic and adjusted) are based on the net loss and a djusted profit before amortisation of acquired intangible assets and exceptional items* respectively and the ordinary shares in issue during the period.
Unaudited Unaudited Audited 6 months 6 months Year ended ended ended 31 March 31 March 30 September 2023 2022 2022 GBP'000 GBP'000 GBP'000 Net Loss for period (86) (88) (701) ============== ============ ============== Adjustments: Amortisation on acquired intangible assets 821 147 743 Exceptionals 38 29 543 Adjusted profit before amortisation of acquired intangible assets and exceptional items 773 88 585 ============== ============ ============== Number Number Number Weighted average shares in issue for basic earnings per share 1,055,369,702 508,006,026 718,622,464 Weighted average dilutive share options and warrants 91,750,707 62,247,272 62,247,272 -------------- ------------ -------------- Average number of shares used for dilutive earnings per share 1,147,120,409 570,253,298 780,869,736 ============== ============ ============== pence pence pence Basic loss per share (0.01)p (0.02)p (0.09)p ============== ============ ============== Diluted loss per share (0.01)p (0.02)p (0.09)p ============== ============ ============== Adjusted basic earnings per share 0.07p 0.02p 0.08p ============== ============ ============== Adjusted diluted earnings per share 0.07p 0.02p 0.07p
============== ============ ==============
*These measures are explained and reconciled in the Alternative Performance Measures section in Note 5 below.
5. Alternative Performance Measures
The Board monitors performance principally through adjusted comparative performance measures. Adjusted profit and earnings per share measures exclude certain items including amortisation of acquired intangible assets and exceptional items. The Board believes that these alternative measures provide a clearer understanding of the Group's underlying trading performance, as they exclude one-off and non-cash items.
They key measures used as APMs are reconciled below:
HY 2023 HY 2022 GBP'000 GBP'000 --------------------------------------------------- --------- --------- Loss before tax as per Statement of Comprehensive Income (86) (88) Amortisation of acquired intangible assets 821 147 Exceptional items 38 29 --------- --------- Adjusted profit before amortisation of acquired intangible assets and exceptional items 773 88 Interest 71 2 Depreciation 83 72 Adjusted EBITDA 927 162 ========= =========
Copies of this Interim Report are available from the Company Secretary, Holly House, Shady Lane, Birmingham B44 9ER and on the Company's website www.reactsc.co.uk/react-group-plc
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
END
IR UWVRROSUNUUR
(END) Dow Jones Newswires
June 29, 2023 02:00 ET (06:00 GMT)
1 Year React Chart |
1 Month React Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions