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(Alliance News) - React Group PLC on Tuesday said it swung to a profit in financial 2023, as its revenue jumped.
The Birmingham, England-based cleaning, hygiene and decontamination firm swung to a pretax profit of GBP50,000 in the financial year ended September 30, from a GBP701,000 pretax loss a year ago.
This was driven by a 70% increase in revenue to GBP19.6 million from GBP13.7 million the year prior.
Recurring revenue was up 87%, compared to 83% in financial 2022. On a like-for-like basis, React recorded organic revenue growth of approximately 21%.
The firm said that the acquisitions of Fidelis and Laddersfree, in 2021 and 2022 respectively, have brought in an "established and impressive client base", which has helped drive the group's revenue.
Additionally, adjusted earnings before interest, tax, depreciation and amortisation more than doubled to GBP2.3 million from GBP1.0 million a year ago.
Looking ahead, React cited good momentum going into financial 2024, following a "strong" first quarter, reflecting significant growth opportunities for the group and its essential services.
Chief Executive Officer Shaun Doak said: "I am delighted to announce a strong performance from the React Group, marked by impressive organic growth and improved profitability and cash conversion. This success underscores the strength of our value proposition and customer acquisition strategy.
"Following the acquisitions of Fidelis in March 2021 and LaddersFree in May 2022, we have consistently achieved substantial organic growth. This achievement showcases our proficiency in integrating these offerings into our core services, unlocking potential across an expanded customer base. Our success is evident through effective cross-selling and upselling strategies, as well as our ability to attract new customers."
Shares in React rose 6.5% to 1.41 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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