React profits improve as group streamlines costs

(Sharecast News) - Cleaning and decontamination group React said margins and gross profits improved last year after costs were streamlined as part of the firm's ongoing transformation.
React told investors on Thursday that it now expects revenue for the year ended 30 September to reach approximately £3.1m, slightly lower than the previous year's figure of £3.3m.

However, the AIM-listed firm said gross margins had materially improved and were up by more than 700-basis points to just over 28%, generating unaudited gross profits of approximately £880,000.

React said cash conservation continued to be a "primary focus" and that its net cash position had risen to £440,000 from £423,000 throughout the course of the year.

With the growth in gross profit, alongside greater control of costs and cash management, React said it expects its final results to demonstrate "a material improvement" in comparison to the prior year period.

Chairman Gill Leates said: "We have prioritised quality of earnings following the restructuring of the business earlier in the year, focusing on specialist cleaning and decontamination markets in which our capabilities are strongest and most valued.

"This has led to improvements in cost management, operating margins and cash collection."

As of 1110 BST, React shares had ticked up 0.65% to 0.39p. React Group