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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 Shares Traded Last Trade
  -0.05 -2.9% 1.675 763,813 08:12:36
Bid Price Offer Price High Price Low Price Open Price
1.60 1.75 1.745 1.675 1.70
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Chemicals 4.36 0.19 0.04 41.9 8
Last Trade Time Trade Type Trade Size Trade Price Currency
16:39:46 O 250,000 1.75 GBX

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DateSubject
28/2/2021
08:20
React Daily Update: React Group Plc is listed in the Chemicals sector of the London Stock Exchange with ticker REAT. The last closing price for React was 1.73p.
React Group Plc has a 4 week average price of 1.40p and a 12 week average price of 1.08p.
The 1 year high share price is 2.05p while the 1 year low share price is currently 0.58p.
There are currently 498,509,350 shares in issue and the average daily traded volume is 1,907,494 shares. The market capitalisation of React Group Plc is £8,350,031.61.
15/2/2021
08:23
rivaldo: 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.
31/1/2021
22:26
rivaldo: Excellent jambam - thanks. A 2.5p target price is good to see. Here's a direct link which is easier to access - Monday will hopefully see some decent activity. I'll copy the article here in case it disappears: Https://masterinvestor.co.uk/equities/react-group-a-penny-stock-that-could-easily-double-in-price/ "REACT Group – a ‘penny stock’ that could easily double in price By Mark Watson-Mitchell 29 January 2021 Mark Watson-Mitchell feels that shares in REACT Group are capable of doubling and more besides. Looking at as many smaller quoted companies as I do, it is good to have found a really small one that is actually doing well during the pandemic situation. If you don’t have time for tiddlers then switch off right now. This one is only capitalised at £7.5m. However, it currently has about £1.8m of cash, is likely to make about £500,000 pre-tax this year and, wait for it, it has a build-up of annual recurring revenue. Regular readers of my profiles will know by now just how much how I love to see ARR. Lovely annual recurring revenue To any company boss and/or finance director ARR is a combination of three magic words. Annual recurring revenue is the portion of a company’s revenue that is expected to continue in the future. Such revenues can be regularly received and used in forward budgeting of any future expenditure. And this little company has two areas of its business generating 80% of its revenues and kicking in some 74% of its gross profits. But I am running ahead of myself here On Tuesday of this week REACT Group (LON:REAT) announced its final results for the year to end-September 2020. Last year its sales improved 41% to £4.36m, upon which it showed a 64% improvement in gross profit to £1.45m, operating on an increased gross profit margin of 33.2% (28.5%). From a previous loss of £183,000 the company swung round to make a £188,000 pre-tax profit. Quite a milestone They showed a maiden profit for the company, which despite its size is a leader in the specialist cleaning, hygiene, and decontamination sector. Its core business includes regular deep cleaning regimes in the health service, on parts of the rail network and the highways, emergency call-out work to respond to trauma, anti-social behaviour, and other hazardous incidents across a range of sectors. That includes working for some of the industry’s largest facilities management firms, through to specialist ad hoc work such as dealing with void clearances, fly tipping, pigeon guano clearance, and graffiti. Three main parts of the business The group has three main areas of business, the first two are Contract Maintenance, where it delivers regular deep cleaning regimes, such as in the healthcare and public transport sectors, operating on between one to five-year contracts; and Contract Reactive, where it is the first responder to an on-call emergency response service operating under a formal contract or framework agreement, which is typically 24-hours a day, 7-days per week, 365-days of the year. The third area is Ad Hoc, where the group provides a solution to typically one-off situations outside a framework agreement, such as for COVID-19 decontaminations. Quality, reach and range The group considers that its purpose is to rapidly return its customers’ property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. As a genuine specialist, it operates in a fragmented market where quality, geographical reach and range of service is a challenge. The company is one of the very few specialists with full coverage of the UK, operating to a call-out time of less than four hours. Such service is essential for its larger customers that rely on a consistently high-quality standard and upon an urgent response to provide their own customers with minimum interruption of service. Value in its work creates regular business The work its specialists undertake has tangible value. The cost of not being able to operate a train, open a hospital ward or occupy property can be quite material. That means that the company’s work is valued and why it operates at higher margins than for regular cleaning. Its customers value both its quality and its speed of response. It is apparent that they recognise the company as one of the very few specialists to deliver such strength and diverse capability across the whole of the country. Growing revenues The company has already identified that its strategy is to continuously improve the financial model, growing revenues whilst maintaining strong margins by delivering valued services, at the same time as improving the long-term recurring nature of the group’s income. There it is again – recurring revenue – it almost gives me a thrill to see it in print. Just ask any boss – do you prefer one-off business or sales that keep on repeating and repeating, where you can increase margins by improving the service being offered. Small in size but big in aspirations I told you this company is small, but I believe that it is now ready to really grow in size. Executive Chairman Mark Braund states that “our strategy for growth is clear; we will continue to build a leading position across our business through fast paced 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.” A fairly tight equity There are some 498.5m shares in issue. Large holders include Octopus Investments Nominees Limited (17.14%), Helium Rising Stars Fund (16.17%), Premier Miton (8.10%), HSDL Nominees (6.24%), Mr J Whitmore (5.29%), HSBC Global Custody (4.01%), The Bank of New York (Nominees) (3.93%), Lawshare Nominees (3.64%), Mr G Stavrinidis (3.32%), HSBC Global Custody (UK) (3.23%), Hargreaves Lansdown (3.54%), Nortrust Nominees (3.22%), and Interactive Investor (3.03%). Broker estimates 268% rise in current year profits Analyst Ian Jermin at Allenby Capital is cautiously looking for the group this year to end-September to increase sales to £5.16m, upon which it could make £505,000 pre-tax profits, worth 0.10p per share in earnings. He sees net cash rising to £2m by the end of the year. These shares could double and still hold potential A year ago, the group’s shares were trading at just 0.55p, they peaked at 1.75p in May last year, then just two months ago they were easier at 0.95p. They have subsequently been edging forward to the current 1.5p. Based on what I can see about this very small-cap company I feel that its shares are capable of doubling and still then offering upside growth possibilities. It is almost at the start of its real expansion and as such I now put the shares out on a 2.5p target price."
10/12/2020
07:24
rivaldo: Great to see this morning's news of director buying. Given REAT's microcap size (and thus illiquidity), to see 1.9m shares bought by directors in a single day is decent going. I suspect the CEO is not yet a wealthy man, so see his £2k as a starter for ten, but the NEDs' purchases are quite sizeable. Even more convincingly, Michael Joyce has gifted 1.8m shares to his wife, and transferred 1.2m of his existing shares into an ISA. These moves are indicative that he believes the share price will be rising nicely from around these 1.3p levels: Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Directors-Shareholdings/83869277
09/12/2020
07:31
rivaldo: Very glad to see the CFO getting some options. Not so sure that Bruand needs them, but hey ho. The more interesting part is that the options only vest if the share price is above from 2p at minimum to 2.8p enabling full exercise. I imagine 2.8p, with 130% share price growth from here, should be reasonably easily achievable in the vesting period if their plans come to fruition: Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Grant-of-Options/83858966
04/12/2020
12:09
sikhthetech: Rivaldo, you previously stated in July that the reason the share price fell from 1.7p/1.8p to 1p, a drop of around 70%, was because of cooltool's 10m sell. So you would expect similar falls if there's a 8m sell? rivaldo RE: Burst of buyingWed 08:56 From posts on another bb, we now know that a poster called "Cooltools" who'd bought 10m shares sold them all at the highs and then at steadily reducing prices, and has now bought 6m of them back at much lower prices to hold for the longer-term to a target of 2.8p. This certainly helps to explain why the share price fell back from the 1.7p-1.8p levels.
02/12/2020
10:10
rivaldo: Good to se a tick up after a £5k buy. Here's a reinstatement of where REAT are at the current 1.05p share price. REAT now have a £3.2m EV (£4.99m m/cap less £1.8m cash). For the current year, a similar upswing to the last year to 30/9/20 would see PBT at well over £500k - an ex-cash P/E of only 6.4 and an extraordinarily cheap PEG. Even at a much reduced growth rate, with PBT of say £350k PBT that P/E would still be only 9.1. There's also the likelihood that REAT will make an earnings-enhancing acquisition from the cash pile to additionally jump-start earnings. Furthermore, in the year just ended REAT made a considerable investment in additional staff and overheads to achieve faster growth. Not only will this have dampened the numbers for last year, but it will benefit this year's numbers as the the new staff are now up to speed and more productive. The PEG (even based on the higher P/E of 9.1) falls to a mere 0.1 or so. As we know, any PEG below 1 is deemed to be good value. REAT's PEG is therefore an out and out bargain on this basis. Worth remembering that the £1.8m cash now represents over 36% of the current m/cap.
16/11/2020
14:01
zico01: Share price down again on small selling.The thing that annoys me and probably other investors is that the directors will also look at the share price on a daily basis.They know the share price is down but they're not doing anything about it. If they BUY some shares it will help the share price. Mr Doak you are the CEO of the company and own ZERO shares. COME ON BUY SOME shares.
10/11/2020
16:55
zico01: Shaun and Andrea you're not helping the share price. You both need to be BUYING the shares ASAP like tomorrow. Share price is 50% below the placing this is clearly NOT good for share holders. It's no good tweeting. We need contract wins ,monthly updates , news on acquisition and directors BUYING all of these will help the share price considerably.
03/11/2020
09:14
rivaldo: Here's a reinstatement of where REAT are at the current 1.15p share price. REAT now have a £3.9m EV (£5.7m m/cap less £1.8m cash). For the current year, a similar upswing to last year would see PBT at well over £500k - an ex-cash P/E of only 7.8 and an extraordinarily cheap PEG. Even at a much reduced growth rate, with PBT of say £350k PBT the P/E would still be only 11.1. There's also the likelihood that REAT will make an earnings-enhancing acquisition from the cash pile to additionally jump-start earnings. Furthermore, in the year just ended REAT made a considerable investment in additional staff and overheads to achieve faster growth. Not only will this have dampened the numbers for last year, but it will benefit this year's numbers as the the new staff are now up to speed and more productive. The PEG (even based on the higher P/E of 11.1) falls to a mere 0.15. As we know, any PEG below 1 is deemed to be good value. REAT's PEG is therefore an out and out bargain. Worth remembering that the £1.8m cash represents over 30% of the current m/cap.
27/10/2020
10:31
zico01: investographer One has to make a decision when to buy(and sell) The company is trading very strongly and will continue to trade very strongly for foreseeable future BUT this is not reflecting in the share price at the moment.The share price will start to re-rate. I'm convinced towards end of January after they published the final results more upgrades will follow and the share price will be a lot higher than todays. I'm holding mine very strongly at the moment.
React share price data is direct from the London Stock Exchange
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