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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% | 67.50 | 67.00 | 68.00 | 67.50 | 67.50 | 67.50 | 3,124 | 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 | 720.66M |
TIDMREAT
RNS Number : 4891J
React Group PLC
29 June 2017
REACT Group plc
("React" or the "Company")
INTERIM RESULTS FOR THE 6 MONTHSED 31 MARCH 2017
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
REACT Group Plc announces its half year results for the period ended 31 March 2017.
This has been a period of consolidation and reassessment of the business, with the closure of EPUK and concentration on improving the core business React Specialist Cleaning Ltd and the other businesses within the group, React Occupational Hygiene Ltd ("ROHSL") and React Environmental Services Ltd ("RES").
Financial Results
The Group results for the period ending 31 March 2017 are set out in the Consolidated Statement of Comprehensive Income. Turnover for the period was GBP1.27m against GBP1.178m in the previous half year to March 2016. The loss for the 6 months to 31 March 2017 stood at GBP0.192 million of which GBP0.028 million was attributable to the closing down costs associated with EPUK. The cash balance at 31 March stood at GBP0.847 million (2016: GBP1.385m).
Strategy
Following the disappointing performance of EPUK resulting in its closure, announced in December, the Company is now concentrating on improving the performance of its remaining businesses within the Group. The Company does not intend making any further acquisitions in the foreseeable future. As part of the strategy to build on the core business, React Specialist Cleaning, two new salespeople have been recruited to drive for more new sales, but we expect it will take time to see the benefit of that investment. ROHSL has been restructured and sales are now improving. The weakest of the three businesses is RES, which despite being awarded a new two year asbestos licence, which is a major win for a new licence holder, continues to perform below expectations and its future within the Group remains under review.
Current Trading
By concentrating on the three remaining businesses the overall performance of the Group has begun to improve, driven by React Specialist Cleaning Ltd and ROHSL. In addition to working for longstanding clients React Specialist Cleaning Ltd has, via a major Facilities Management ("FM") company, secured work at a major London hospital to supply labour to clean wards, operating theatres and public areas on a daily/nightly basis, involving approximately 20 members of staff.
ROHSL was restructured and sales are now coming through at the level we anticipated and the team has built a relationship with a nationwide dental practice to provide a range of services, which seems to be becoming a good steady flow of sales and profit.
Asbestos is proving a difficult business to grow. Our sales are much slower than we had originally hoped, however the team continue to work at building a sales pipeline.
A new administrative computer system is being installed, which will give a higher level of visibility and improve our controls going forward across all the businesses.
Outlook
Our marketplace is shifting with a number of our customers moving to a more FM managed service. We have retained most of the business but at a lower margin, and in some cases have increased sales. The Company has added some prestigious new clients and continues to work to add sales and control costs to enable it to continue to improve its financial performance in the second half of the year.
G.M. Leates
Chairman
28 June 2017
For further information, please contact:
REACT Group plc Gill Leates - Chairman 07799 662642 SPARK Advisory Partners Limited Neil Baldwin 0113 370 8974 Mark Brady 0113 379 8971 Whitman Howard Limited Nick Lovering 0207 659 1224 Walbrook PR Ltd 020 7933 8780 Anna Dunphy Mob: 07876 741 001
REACT Group Plc
Consolidated Statement of Comprehensive Income
For the six months ended 31 March 2017
Note 6 months 6 months Year to ended ended 30 September 31 March 31 March 2016 2017 2016 GBP'000 GBP'000 GBP'000 Continuing Operations Revenue 1,270 1,178 2,432 Cost of Sales (934) (648) (1,419) ----------- -------------- Gross Profit 336 530 1,013 Administrative expenses (500) (560) (1,159) Operating loss (164) (30) (146) Income tax expense - - (1) Loss for the period from continuing operations (164) (30) (147) Loss for the period from discontinued operations (28) - (141) ----------- ----------- -------------- Loss for the period (192) (30) (288) Other Comprehensive Income - - - Loss for the financial period attributable to equity holders of the company (192) (30) (288) =========== =========== ============== Loss per share for loss attributable to the equity holders of the company (pence) on continuing activities Basic and diluted loss per ordinary share From continuing operations (0.06p) (0.01p) (0.05p) From discontinuing operations 4 (0.01p) - (0.05p) =========== =========== ==============
REACT Group Plc
Consolidated Statement of Financial Position
As at 31 March 2017
Note As at As at As at 31 March 31 March 30 September 2017 2016 2016 Assets GBP'000 GBP'000 GBP'000 Non-current assets Intangibles 1,444 1,466 1,444 Property, plant and equipment 173 237 252 ---------- 1,617 1,703 1,696 ---------- ---------- -------------- Current assets Trade and other receivables 1,069 624 788 Cash and cash equivalents 847 1,385 931 1,916 2,009 1,719 -------------- Total assets 3,533 3,712 3,415 ========== ========== ============== Equity Shareholders' Equity Called-up equity share capital 5 689 689 689 Share premium account 4,889 4,889 4,889 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 30 5 22 Accumulated losses (1,689) (1,239) (1,497) Total Equity 2,858 3,283 3,042 ---------- ---------- -------------- Liabilities Current liabilities Trade and other payables 654 409 352 Non-current liabilities Deferred tax liability 21 20 21 Total liabilities 675 429 373 ---------- ---------- Total Liabilities and Equity 3,533 3,712 3,415 ========== ========== ==============
REACT Group Plc
Consolidated Statement of Cash Flows
For the six months ended 31 March 2017
Note 6 months 6 months Year to ended ended 30 September 31 March 31 March 2016 2017 2016 GBP'000 GBP'000 GBP'000 Net cash used in operating activities (78) (317) (698) Net cash from investing activities Purchases of property, plant and equipment (6) (137) (210) Net cash outflow from investing activities (6) (137) (210) ---------- ---------- -------------- Net cash from financing activities Net proceeds from issue of equity
shares - - - Net increase in cash, cash equivalents and overdrafts (84) (454) (908) Cash, cash equivalents and overdrafts at beginning of period 931 1,839 1,839 Cash, cash equivalents and overdrafts at end of period 847 1,385 931 ========== ========== ============== Reconciliation of operating 6 months 6 months Year to loss to net cash outflow from ended ended 30 September operating activities 31 March 31 March 2016 2017 2016 GBP'000 GBP'000 GBP'000 Operating loss from continuing activities (192) (30) (288) Depreciation and amortisation 90 86 163 Share based payments 8 5 22 Operating cash flows before movements in working capital (94) 61 (103) ---------- ---------- -------------- (Increase)/decrease in receivables (281) 140 (24) Increase/(decrease) in payables 297 (518) (571) ---------- Net movement in working capital 16 (378) (595) ---------- ---------- -------------- Net cash outflow from operating activities (78) (317) (698) ========== ========== ==============
REACT Group Plc
Consolidated Statement of Changes in Equity
Six months ended 31 March 2017
Share Merger Capital Reverse Based Share Share Relief Redemption Accumulated Acquisition Payments Total Capital Premium Reserve Reserve Deficit Reserve Reserve Equity GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 At 30 September 2015 689 4,889 1,328 3,337 (1,209) (5,726) - 3,308 Options issued in the period - - - - - - 5 5 Loss for the period - - - - (30) - - (30) At 31 March 2016 689 4,889 1,328 3,337 (1,239) (5,726) 5 3,283 --------- --------- --------- ------------ ------------ ------------- ---------- -------- Options issued in the period - - - - - - 17 17 Loss for the period - - - - (258) - - (258) At 30 September 2016 689 4,889 1,328 3,337 (1,497) (5,726) 22 3,042 --------- --------- --------- ------------ ------------ ------------- ---------- -------- Options issued in the period - - - - - - 8 8 Loss for the period - - - - (192) - - (192) At 31 March 2017 689 4,889 1,328 3,337 (1,689) (5,726) 30 2,858 --------- --------- --------- ------------ ------------ ------------- ---------- --------
REACT Group Plc
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 period ended 30 September 2016. The interim financial information for the six months to 31 March 2017, which complies with IAS 34 'Interim Financial Reporting' has been approved by the Board of Directors on 28 June 2017.
The unaudited interim financial information for the period ended 31 March 2017 does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the period ended 30 September 2016 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 period ended 30 September 2016 and are those expected to be applied for the year ending 30 September 2017.
New and amended standards adopted by the group
There are no IFRSs or IFRIC interpretations that are effective for the first time in this financial period that would be expected to have a material impact on the group.
3. Segmental Reporting
In the opinion of the directors, the group has one class of business, being that of specialist cleaning and decontamination services. The group's primary reporting format is determined by the geographical segment according to the location of its establishments. There is currently only one geographic reporting segment, which is the UK. All costs are derived from the single segment.
4. Loss per Share
The loss per ordinary share has been calculated on the loss on ordinary activities after taxation of GBP192,000 (30 September 2016: GBP288,000; 31 March 2016 GBP30,000) using the weighted average number of ordinary shares in issue during the period being 275,407,753 (30 September 2016: 275,407,753; 31 March 2016: 275,407,753).
Basic and diluted earnings per share are the same, since where a loss is incurred the effect of outstanding share options and warrants is considered anti-dilutive and is ignored for the purpose of the loss per share calculation. As at 31 March 2017 there were 19,104,464 (30 September 2016: 19,104,464; 31 March 2016: 19,104,464) outstanding share warrants and options which are potentially dilutive.
5. Called up Share Capital
The issued share capital as at 31 March 2017 was 257,407,753 Ordinary Shares of 0.25 pence per share (30 September 2016: 257,407,753 Ordinary Shares of 0.25 pence per share as per the audited accounts; 31 March 2016: 257,407,753).
There were no share issues during the interim period or the comparative periods.
6. Share Options
On 30 November 2015, the Company issued EMI options for 16,524,464 new ordinary shares in the Company exercisable at a price of 1.68p per GBP0.025 ordinary share, exercisable after 3 years. The options have a 10 year exercise period ending on 29 November 2025.
No options were exercised in the period.
The fair value of the share options issued in the current period on 20 November 2015 with an exercise price of 1.68p is 0.38p and was derived using the Black Scholes model. The following assumptions were used in the calculations:
Share price at grant date 1.68p Risk-free rate 0.25% Volatility 30% Expected life 10 years
Expected volatility is based on a conservative estimate for the Company. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
GBP8,000 (March 2016: GBP5,000) has been recognised during the period for the share based payments over the vesting period.
7. Post balance sheet events
There were no post balance sheet events.
8. Availability
Copies of this Interim Report are available from the Company Secretary, Finsgate 5-7 Cranwood Street, London, EC1V 9EE, and on the Company's website www.reactplc.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FPMFTMBJTBFR
(END) Dow Jones Newswires
June 29, 2017 02:00 ET (06:00 GMT)
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