We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Last night's RNS is worth noting - Dowgate Wealth via Onward Opportunities Ltd have appeared from nowhere with 5.89%, or 62,276,700 shares:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Holdings-in-Company/91605186
They don't appear on REAT's most recent major shareholder list over 3% at all as at 15th May, so must have been buying steadily since then alongside Harwood Capital:
Https://www.reactsc.co.uk/react-group-plc
A nice 7.5m share trade at 1.5p just reported - I assume a buy from earlier. Maybe Christopher Mills/Harwood buying again?
Great to see the share price starting to climb again - but with 0.169p EPS forecast to 30th September this year the P/E still remains only 8.4.
The combination of Christopher Mills/Harwood's buying and the Mello presentation, which appears to have been very well received, is doing the trick nicely.
Https://www.lse.co.uk/rns/REAT/holdings-in-company-u2eo9d6frwjfdmi.html
Confident.
reat will be presenting tonight at the mellomonday webinar at 7.00pm:
https://melloevents.com/mm170723/
tickets are apparently free for shareholders using the code shr100.....
https://www.tickettailor.com/events/melloeventslimited/950769
christopher mills who is a legendary fund manager and has a significant holding in react will also be presenting in the mello show next monday, so there could be a double plug for reat.
further controversy in the press over the weekend about asbestos in schools and hospitals - there should be a great opportunity here for reat since they have the authorisations:
https://www.thetimes.co.uk/article/matt-han****-failure-to-remove-asbestos-from-hospitals-and-schools-is-national-scandal-dtzhxtbjc
Singer Capital have now raised their price target to 2p (from 1.5p).
This is in line with Equity Development who've also increased to 2p.
Singer forecast 0.169p EPS this year to 30/9/23, rising to 0.197p EPS to 30/9/25. That's a current year P/E of 7.98 falling to 6.85.
Net cash rises over the period to £2.1m at 30/9/25 (remember that a large proportion of REAT's revenue is not only recurring, but paid in advance).
Singer conclude that at the 1.3p at the time of the note:
"Shares attractively valued
We believe the shares are substantially undervalued, trading on a Sep. ’24 P/E rating of only 7.9x, falling to 6.6x. We target a 10x Sep. ’25 P/E multiple, which implies a 2.0p target price (increased from 1.5p). Given the M&A strategy and opportunities to grow LaddersFree ahead of our forecasts, we see scope for the price to exceed this level over time."
Big article in yesterday's Sunday Times about asbestos in schools is likely terrific news for REAT over time.
The ST are launching a campaign for government action as there are 21,500 schools which contain asbestos and an estimated 10,000 teachers, pupils and staff have died from asbestos exposure at schools in the past four decades.
Firstly, REAT has a full asbestos removal licence, enabling it to carry out removal and encapsulation of asbestos and full reinstatement:
Https://www.sharecast.com/news/aim-bulletin/react-group-adds-asbestos-removal-to-decontamination-offering--1017677.html
Secondly, via its Fidelis acquisition REAT already has a large portfolio of schools taking its services (and from memory REAT already had schools even before Fidelis was acquired). It should be easy to cross-sell as REAT have already proven they can do successfully.
Here's the article:
Https://www.thetimes.co.uk/article/act-now-on-asbestos-pupils-and-teachers-being-killed-years-after-exposure-pznsmtd6p
"The Sunday Times is campaigning for a phased removal of asbestos, starting with schools and hospitals. Government policy is to leave it in place unless it is disturbed and damaged. But with many lightweight prefabricated structures built in the 1950s, 1960s and 1970s now in a state of disrepair, this is no longer a viable policy: it could be putting schoolchildren, teachers and ancillary workers at risk. Not everyone who inhales asbestos will be affected by it, but some need to breathe in only a few fibres."
"In 2021 the DfE costed the backlog of school repairs in England at £11.4 billion. The following year the department said there was a risk of “the collapse of one or more blocks in some schools which are at, or approaching the end of, their designed life expectancy”.
A good interview by Mark Braund:
bit.ly/3PCLAGn
Mark Braund (Chairman), Shaun Doak (Chief Executive Officer) and Andrea Pankhurst (Chief Financial Officer) of REACT Group plc (AIM: REAT) conducted a live investor presentation covering their Interim results.
Management took investors through a detailed overview of the company, and talked through the highlights of the reporting period, which included strong growth in revenues & EBITDA. A rising proportion of recurring revenues, improving margins and strong cash generation in their specialist markets resulting in improved visibility. The team also touched on the outlook and their strategy as REACT aim to be the leading specialist cleaning business in Great Britain.
The full video recording of the investor presentation has been divided into chapters as below:
0:00:14 Introduction to REACT management team
0:01:44 REACT Group overview & customers
0:06:37 Interim Accounts summary & reporting segments
0:13:02 Outlook
0:15:18 Strategy
0:17:07 Significant shareholders & Summary
0:18:12 Questions & Answers
Link to full video: https://www.equitydevelopment.co.uk/research/react-group-investor-presentation-interim-results-june-2023
A very good reading. Increase in T/O is admirable, obviously boosted by the 2 acquisitions. The 'new business' gains bode well for future results. Recurring revenue and profit margins are again metrics that bode well for huge S/H gains in the next 2/3 years. Happy to be onboard.
MC £14m.... time for Rentokil or one of the other big boys to buy this company for a tidy sum in the region of say £25m and then Doak & co can successfully move on to their next adventure.
The Group has delivered record revenues and EBITDA in H1 to March 2023. The rising proportion of recurring revenues, improving margins and strong cash generation in consolidating, specialist markets has resulted in improved visibility. As the final deferred consideration will be paid during FY24, we expect net cash to rise to £3m or 34% of the NAV during FY25.
Improved visibility generated by the focus on added-value, long term contracts has enabled us to introduce estimates for FY24 and FY25. We anticipate a CAGR in revenues/EBITDA of 15.3%/35.8% respectively between FY22A and FY25F. Adj. EBITDA margins increase from 7.0% to 13.4%. Our expectation is investment in the business and/or M&A will take precedence over dividends for now. We have increased our fair value / share estimate to 2.0p (from 1.7p), a 57% premium to the current price.
Link to report: https://www.equitydevelopment.co.uk/research/records-broken-and-encouraging-trends
The numbers and particularly the general trends and tone of today's interims look fine to me, particularly pleased with the confidence in the outlook for the full year.
In a bit of a rush, but just to say Equity Development's update includes an increase in their price target to 2p (from 1.7p).
They forecast 0.14p EPS for this year to 30/9/23, followed by 0.16p and 0.19p EPS.
They conclude:
"Records broken and encouraging trends
The Group has delivered record revenues and EBITDA in H1 to March 2023. The rising
proportion of recurring revenues, improving margins and strong cash generation in
consolidating, specialist markets has resulted in improved visibility. As such, we have introduced estimates for FY24 and FY25, with an expectation that EBITDA margins will improve to 13%+ by FY25 (vs. 7.0% in FY22A). As the final deferred consideration will be paid during FY24, we expect net cash to rise to £3m or 34% of the NAV during FY25. Our increased fair value assumption reflects our DCF and FY1 PER and price/book peer group models."
"Rise in fair value / share assumption
Improved visibility generated by the focus on added-value, long term contracts has enabled us to introduce estimates for FY24 and FY25. We anticipate a CAGR in revenues/EBITDA of 15.3%/35.8% respectively between FY22A and FY25F. Adj. EBITDA margins increase from 7.0% to 13.4%. Our expectation is investment in the business and/or M&A will take precedence over dividends for now. We have increased our fair value / share estimate to 2.0p (from 1.7p), a 57% premium to the current price."
REACT Group plc (AIM: REAT), the leading specialist cleaning, hygiene, and decontamination company, will be conducting a live investor presentation and Q&A session covering their Half Year results for the period ended 31st March 2023.
Shaun Doak (Chief Executive Officer), Andrea Pankhurst (Chief Financial Officer) and Mark Braund (Chairman) will host the online event on Thursday 29th June at 2.00pm.
Questions can be submitted before and during the presentation, and will be addressed at the end of it.
The presentation is open to all existing and potential shareholders - you can sign up to register below.
Link: https://www.equitydevelopment.co.uk/news-and-events/investor-presentation-half-year-results-29th-june-2023
Big volume Harwood topping up again?
Nice start to the week, with just a £5k buy causing a tick up.
Yep I agree this will start moving upwards
GLA to those who held
Hopefully this is the start of a breakout underpinned by HC/CM buying since Feb
Another 800,000 shares bought this morning and another tick up....looking strong. Hopefully Harwood Capital/Christopher Mills are buying again.
Nice 408,334 share buy to start the day has caused the price to tick up again. Perhaps not much stock around.
Just as I thought. Hardwood has moved from 4.14% in February to 9.03% in May..... What next!?
Harwood Capital/Oryx/Christopher Mills continue to buy. They've bought another 8m shares and now have 95.5m, or 9.03%:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Holdings-in-Company/91058770
Excellent rise late on Friday, and good to see buying this morning at the full 1.35p offer price.
Yet still only on a single-figure P/E.
Tick up soon methinks
More large trades. TR1 incoming. Harwood adding to their holding again?