React Group shares fall as interim loss widens; focused on pipeline

(Alliance News) - React Group PLC on Tuesday said it remains focused on strengthening pipeline momentum as it reported an increased interim loss amid sharply higher administrative expenses.

The Birmingham, England-based provider of cleaning and soft facilities management services said it swung to a loss of GBP280,000 in the six months to March 31 from a profit of GBP87,000 a year ago.

React shares were down 21% to 56.60 pence each on Tuesday morning in London.

Revenue grew by 14% to GBP12.1 million from GBP10.6 million, but cost of sales increased 6.8% to GBP8.2 million from GBP7.7 million, while administrative costs were up 55% to GBP4.0 million from GBP2.6 million.

React said it remains focused on mid-market opportunities, noting that deals that experienced delays in the first half of 2025 are now progressing which supported "re-emerging" revenue growth.

Chief Executive Officer Shaun Doak said: "While economic pressures have materially affected some areas, the successful integration of 24hr Aquaflow Services has been a key growth driver, helping to offset some of the challenges in specialist cleaning. Looking ahead, we remain focused on strengthening pipeline momentum and capitalising on mid-market opportunities, where shorter decision cycles are supporting new business wins."

React bought 24hr Aquaflow Services Ltd for up to GBP7.4 million late last year. It is a drainage and plumbing services firm operating in London and the south east of England for the past 20 years.

By Tom Budszus, Alliance News slot editor

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