React Group Share Price (REAT)

Sorry Rivaldo, no. The filed audited accounts to 30 Sept 2025 shows a pre tax loss of £340,000 and a profit of £18,000 the previous year. Hence my concern about the forecast £2.3 Million for the year to 30-9-26.

The half year earnings to 30-3-26 due on 25-5-26 will be a make or break one for me.

In the last results presentation of FY2025 on the Investor meet Company platform, management made a big deal of growing EBITDA and almost completely ignored the fact that pre tax profit had moved to a loss (Normalised EPS moved from +0.773p to -0.709p). I asked for an explanation of this and they basically dodged the question.

I also asked about the dramatic improvement in Normalised EPS forecast for FY2026 of 6.2p and for FY 2027 8.23p. Stockopedia show the analyst consensus is made up from just one broker, presumably the company's Broker and NOMAD, Singer Capital Markets. Mark Braund essentially stated it was nothing to do with management. In practice that is surprising and does not inspire confidence. I cannot believe Singer would leave such a forecast out there if the company's management don't believe it is achievable. If it is right, that would be a major achievement and a PE of about 7 and 6 in 2027! Possibly it is an error in Stockopedia's Refinitif data. All very strange.

Any clarification would be much appreciated!

Hi rivaldo,

what do you consider as fair value here ?

REAT have increased PBT from £0.7m to Sept '22 to £2.0m to Sept '25. PBT is forecast to rise again to £2.2m this year and then £2.8m to Sept '27.

EPS has risen from 3.7p EPS to Sept '22 to 7.6p EPS to Sept '25, and then 8.2p EPS by Sept '27. This against a now 47p share price.

It's the market's fault if it hasn't - yet - recognised the progress that's been made. And therein lies the opportunity for investors entering the fray at this rather undervalued point.

The EPS progress shows that revenue is not being "bought in" without accompanying improvements in profitability or huge share issuances. And net dent remains at very small, manageable levels at £1.5m-£2m. So much so that there may be further earnings-enhancing acquisitions.

Just to put a bit more meat on the bone here, years ago React acquired Fidelis for a sum amounting to just under 5 million.

According to Rivaldo's post dated 18th Feb 2026 Fidelis is now 4 x the size of it's size at acquisition. Fidelis is only one part of React which is now valued at little more than 11 million in total. What's happened ? Where on earth has the value gone ?