ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

REAT React Group Plc

1.35
0.05 (3.85%)
Last Updated: 08:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
React Group Plc LSE:REAT London Ordinary Share GB00BZ2JBG28 ORD 0.25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.05 3.85% 1.35 1.30 1.40 1.35 1.35 1.35 1,030,641 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 14.41M

React Group PLC Update on acquisition of Fidelis (2965Y)

12/05/2021 7:00am

UK Regulatory


React (LSE:REAT)
Historical Stock Chart


From Mar 2021 to Mar 2024

Click Here for more React Charts.

TIDMREAT

RNS Number : 2965Y

React Group PLC

12 May 2021

12 May 2021

REACT Group plc

("REACT" or the "Group")

Update on acquisition of Fidelis Contract Services Ltd

REACT (AIM: REAT.L), the leading specialist cleaning, hygiene, and decontamination company, is pleased to announce an update in respect of the acquisition of Fidelis Contract Services Ltd ("Fidelis"), details of which were announced on 29 March 2021.

The acquisition of Fidelis has been immediately earnings enhancing for REACT and has been an important step in the Group's stated growth strategy. The Board of REACT is delighted with the smooth integration of the business into the Group with the two management teams working well together to deliver quality services to customers.

REACT is pleased to announce that, based on unaudited management accounts prepared by Fidelis for the year ended 31 March 2021 ("FY 2021"), Fidelis has generated revenue of GBP4.87 million, up 48% on the prior year (FY 2020: GBP3.30m), gross profit up 45% at GBP1.23 million (FY 2020: GBP0.85m) and EBITDA up 112% at GBP0.56 million (FY 2020: GBP0.27 million).

As such, the Board of REACT anticipates GBP500,000 of the first deferred consideration will be payable in cash to the vendors of Fidelis in October 2021. The Board also anticipates a further GBP200,000 will be due in respect of the first deferred consideration, with payment scheduled in four equal instalments between 30 September 2022 and 29 March 2024. REACT is well positioned to make these payments from within its existing resources.

The Fidelis financials and the deferred consideration figures remain subject to, inter alia, completion of audit and finalisation of the completion accounts. As such, the first deferred consideration payments remain subject to potential change but are capped at a total of GBP700,000. It is anticipated that the audit and completion accounts will be finalised in July 2021 to enable the first deferred payment to be made in October 2021.

As the acquisition of Fidelis completed on 26 March 2021, the performance of Fidelis will not have any impact on REACT's results for six months ended 31 March 2021, to be announced by 30 June 2021. The Board of REACT is pleased with the performance of Fidelis in the short period since being part of the Group and, as such, the Board continues to be confident of the positive impact Fidelis will have on the Group for the remainder of the current financial year and beyond.

As previously announced, the total consideration payable for Fidelis was based on 4.75 times EBITDA in the financial year ending 31 March 2022 ("FY 2022") capped at GBP4.75m (on a cash free, debt free basis with normalised working capital).

Further details on the terms and the structure of the acquisition are detailed in the announcement released by REACT on 29 March 2021.

For more information:

 
REACT Group plc 
Mark Braund, Chairman                       Tel: +44 (0) 798 222 
 Shaun Doak, Chief Executive Officer         0001 
 Andrea Pankhurst, Chief Financial Officer 
Allenby Capital Limited 
 (Nominated Adviser and Broker) 
Nick Athanas / Liz Kirchner (Corporate      Tel: +44 (0) 203 328 
 Finance)                                    5656 
 Amrit Nahal / Tony Quirke (Sales & 
 Corporate Broking) 
 

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

UPDGPUQGAUPGPUG

(END) Dow Jones Newswires

May 12, 2021 02:00 ET (06:00 GMT)

1 Year React Chart

1 Year React Chart

1 Month React Chart

1 Month React Chart

Your Recent History

Delayed Upgrade Clock