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Results will be out on the 31st January - next Monday - with an Investor Meet presentation on the Thursday:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Notice-of-Results-and-Investor-Pre/87090073
Hi Callan - we are expecting an update from the company at the end of Jan, which should provide lots of insight. I'm hoping for more contract wins (of course) and perhaps we might hear whether the company has plans for further acquisitive growth. I would be delighted if the company was bought out at a premium by one of the big boys in the sector. Shaun Doak and his team have really taken great strides in turning REAT around from prior cash shell and poor performance. Still an AIM tiddler, so there is risk as well.
Hello everyone. I'm new to this share and would love to know your opinions on what we would like to see news wise in 2022? I was first attracted to REACT by the chart but after a bunch of research it's a damn good looking investment. GLA.
Fidelis have won another contract this week (on Monday). This one's for £900,000 plus VAT over 5 years, i.e £180,000 per annum, fo a sixth form college in Birmingham:
Https://bidstats.uk/tenders/2022/W02/766574630
Lovely recurring income once again, all adding to the considerable recurring income already won.
Plus there's the potential for additional work - "during the course of this contract an additional one or two building may be added to the college and the successful contractor should cost this additional cleaning requirement using the same productivity ratios as were applied for the successful tender."
Unusually Allenby Capital haven't yet issued an update after today's large contract win. I suppose it's possible they won't update until after the prelims "towards the end of January".
Great - Just needs to go to 8.03 and im back in profit. :(
The Fidelis acquisition looked good ( on paper ) at the time and now bearing fruit. Significant recurring income to de-risk holding ( plus £5m is minimum). There will be further announcements of work off the back of this contract award
rivaldo,
Up 25% at the moment, 2.10 - 2.15.
This is a significant contract win. £1m+ per annum for 5 years is lovely recurring income, and not bad at all for an £8.5m m/cap company.
Plus there's likely substantial reactive work to add to that. And the kudos of having the work from this customer more than tripled since the prior contract with them.....
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Contract-win/87006821
wow - what is going on with those trades....
Vol starting to look good. MoneyWeek tip was well timed for imminent results.
Good spot Rivaldo. REAT has been good to me thus far. Took a bit out around 2.25p but still holding strong. I wonder if sentiment is returning; hopefully and we will see the 4%-8% daily gains appearing again.
Good to see REAT getting tipped for 2022 in Money Week magazine:
Https://moneyweek.com/investments/stocks-and-shares/share-tips/604294/four-aim-stocks-to-buy-for-2022
"Four Aim stocks to buy for 2022
Michael Taylor of Shifting Shares picks four risky but potentially lucrative stocks from Aim, the alternative investment market
by: Michael Taylor
7 Jan 2022
React Group
(Aim: REAT), 1.4p
React Group is a specialist cleaning-services provider. It would be easy to decide that cleaning is low-margin and write this stock off, but React does a lot of the cleaning that nobody else wants to do. This includes prisons, rail fatalities and commercial tenancies.
Clearly, if a train can’t travel because of debris on the tracks, then this can cost the train company a hefty packet. React can deploy its emergency-cleaning service across Great Britain within four hours and provides services to several of the big facilities-management companies. One of the company’s stated aims is to increase its offering to its existing clients, as well as expand both organically and through acquisitions. React wants to become the “800-pound gorilla” in the sector by taking advantage of a fragmented market.
So far, the board has done a good job of turning the company around and bringing it to profitability. On projected earnings of £684,000, the stock trades on a price/earnings (p/e) ratio of just over ten. It is expanding and generating cash. The market capitalisation, however, is £7.2m, making it a real minnow.
The stock is illiquid and it’s certainly not one for traders. If something goes badly wrong you will find it hard to exit: the stock trades only a handful of times a day. I hold React and believe that if the company can continue to grow its sales and profits, then the share price should follow."
Omicron is here to stay. Mildness means people need to go back to work, but fast transmission means regular outbreaks at factories, warehouses, offices , schools etc…that’s where we come in.
I anticipate demand For our services will be very solid for the foreseeable future, 1-2 years!
Happy New Year to everyone here.
Nice to start 2022 with a bit of activity and a decent early move upwards. Just a reminder that the results are expected "towards the end of January" and will show around 0.12p EPS per post-update forecasts.
The current year to 30/9/22 will include a full year of the Fidelis acquisition (last year only included 6 months' worth of Fidelis' profits), so hopefully REAT are on track for say 0.14p-0.15p EPS this year.
Especially with reactive work from the likes of the judiciary, police, housing associations etc having returned to normality from Covid/lockdowns.
sold at tiny profit
1. run rate adj EBITDA before Fidelis acquisition was 2*£369k, so why is full year EBITDA so low?
2.how much deferred consideration are they likely to have to pay? £3m by March 2024 would stretch them (another placement?)
3. Cash decreased March to Sept...so more than £400k absorbed by WC?
I've bought for oversold bounce...but valuing this at the 4.75 EBITDA multiple used in Fidelis transaction would put the sp well below 1p (given real cash position is £0.5m less deferred consideration, and actual diluted shares will probably rock up beyond 600m)
(4.75* £750k - ?£1m (cash minus deferred consideration)) is barely £2.5m divided by 600m...dyo maths...it's bleak, indeed
Back to lockdown is inevitable folks, eventually after many attempts to delay/avoid for the next 2/3months. Low severity vs high transmissibility, hospital beds unfortunately win every time, sadly.
The strong economies will desperately try to keep things going as much as possible, a they all sense peak lockdown fatigue is here. The uncertainty around new strain also means REACT has a window to lock in substantial contracts as not all activity sectors can work from home!
#jollyflipping
Contract win announced this morning - at £150k it's good to see though not exactly material as an RNSNON, more indicative of REAT's evidently high quality of service and relationship with a major customer.
And this is "just the initial value of this incremental engagement", so REAT presumably believe there's more to come:
Https://uk.advfn.com/stock-market/london/react-REAT/share-news/React-Group-PLC-Contract-Win/86810312
Incidentally, jolly speculator's figures are incorrect. So I repeat that at 1.425 with 0.12p historic EPS now forecast to 30th September just gone, REAT are on a backwards-looking P/E of just 11.9.
Allenby were previously noting that REAT were on track for 0.17p EPS this year including a full year of Fidelis. Even if this gets reduced to say 0.15p EPS that would be a current year P/E of just 9.5.
As proof, here's Allenby's latest research:
Http://www.allenbycapital.com/research/research-REAT.html
Someone’s buying a lot of shares here in the last few days…
care to share yr "cautious calc" that gives absurdly high multiples lol?
I do have to say I like this company. I have been invested for a while, although not a lot £1k only. But I do like the look of their balance sheet. Could be a nice little defensive stock.
Based on my cautious calculation the fair value should be £0.1
untrue
eps (even adj UP) was 0.06 not 0.12
this sp isn't remotely cheap
With 0.12p historic EPS now forecast to 30th September just gone, REAT are on a backwards-looking P/E of 13.8.
Allenby were previously noting that REAT were on track for 0.17p EPS this year including a full year of Fidelis. Even if this gets reduced to say 0.15p EPS that would be a current year P/E of just 11.1.