Member Info for nims

The regular maintenance business largely operates in the healthcare, road and rail sectors. Revenue continues to grow in the rail and healthcare sectors more than compensating for temporary disruption in others.

This is great news, and will strengthen the balance sheet nicely. If React use the additional cash wisely, with the combination of received payments from the recent contract wins this will be a very cash rich company. I am so lucky to get my top up at 1.45p the other day. Well done to all those who managed to buy sub 1p, I wish I was braver sooner. Can’t wait for the results now and see what the operating profit looks like. I am already starting to think where I will invest the profits from React into next. Some simple assumption math React company value £6m but will have nearly £2m cash post placing in bank (I think I have read the RNS right ie existing c.400k plus placing of £1.25m). If this assumption from me is right and with op profit from £10k to £50k will put an intrinsic value of £8m - £20m market cap - which is roughly 1.6p to 4p a share. My mind is blown with trying to calculate the sp as this value is without any typical multiple added - could we see even 6p if React is valued similar to dudd stocks on aim.

Good luck pimply, I will also add more at depressed prices. If the results is what I expect then I will be also adding more at 2p and beyond until true intrinsic value is realised. At these prices it’s a worthwhile investment. Well done on your early buys. I am really excited for the results. The last time I was this excited for a companies results was Sanderson and Volvere where it was really obvious that the results were going to be so strong the share price would soar. I can see this happening here if the operation profit and cash at bank in interims is near my predicted target.

True, but always keep and eye out for the dodgy lies by broad of directors look at Finblr and NMC - FTSE companies made billions of £ and had top notch auditors like EY and yet it was shown that their accounts were based on Lies also the regulator don’t care if a company lies. So hence why I am cautious. Nothing in stock market is no brainer unfortunately. But I like this one a small company cannot really make up stuff on books and no one will lend them billions yet it’s just there is not enough news around contract wins and recurring revenues to draw conclusions on the turnover. But if banks are willing to lend a tiddler £225k then there must be a decent forward looking revenue line.

No dates shared by company but we estimate end of June if we follow last years reporting

Couldn’t resist at these prices so close to results. Unless market knows something I am confident the results will blow this away. At least I got in a few more before results

2p in June will be nice. I think we should see 2p before the interims I f markets are confident of positive news. And potentially 2.5p to 3p if they show good operating profit. But I think we shouldn’t lose sight of the bigger picture which is if all they saying around being busy is true then this will push the sp to 4-5p there are worse companies siphoning millions and making no money at higher valuations. Patience is key here but this should come good, unless my math is completely wrong or the company hasn’t been truthful which is a big risk especially with Aim stocks

I think by year end this will come good. We just need the interims to confirm all the good news is true. The company has already got over £1m in rev secured and that is excluding the uni contract renewal and other recurring revenue. As I always say cash burn is the key, but with a bold move in promoting within for a new CFO mean that they are looking to manage their balance sheet prudently. GLA

I will not rush the purchases as I normally invest in stocks at a particular time of each month, if we can hold the price low for a few more days then I can buy this months. Hopefully I will get next months trench before interims. Happy to block build slow and steady. I am already invested in here so whatever happens is a win / win. Ie if it soars win, if it stays steady win and if it does not move or collapses win (as enjoyed the ride with small investment).

I want it to stay low for a few months, as I am topping up small amounts each month to build a decent holding. Nothing major but money That won’t be missed and not too risky a strategy. If we can stay at 1.5p up to Sept then will be really happy as I can see the surge more coming in Nov / Dec before trading updates

Thanks for the RNS dubz. The exciting part of that note is that Gillean words I liked “as the company continues to grow”. This is indicating that there is potentially some positive news coming around their performance, it’s a clever choice of words but says a lot. Also at this crucial time where companies should be cutting down of coats they are promoting which means that there must be a healthier cash balance compared to last year. Only time will tell whether all this optimism is real. GLA

I am actually not sure how valid this question is. It doesn’t matter if GS buys or sells. He’s just a shareholder who is allowed to sell as he’s made serious profit of his initial investments. The fact that he is unloading is not a bad thing this allows for a bit more liquidity. For the key here is the interims and how truthful REAT are about the work they got. That will be make or break a great set of interims will force this share up. GLA and have a nice weekend.

It’s over £1m f you include the undisclosed 3 year uni contract mentioned in the trading statement. I am guesstimating a total of £1.1m as the uni contract should be around £50-£100k a year. If they could announce recurring revenue that would be amazing as that’s the main figure. Worst case no recurring best case all recurring. However looking at 2018-2019 I am expecting at least 75%-80% recurring. With this news today we could expect a significantly higher growth compared to last year in the interims with a good operating profit my £50k still stands. I hope they take cash upfront. Imagine if they have £400k in cash in the interims with growing demand. Company only valued at £5m with 400k cash and growing demand crazy. There are companies with no cash no demand more shares in issue with higher SP which is crazy. There isn’t a lot of shares in issue for a toddler making profit so rest assured demand for the stock will outstrip sellers and price will have to go up.

A company like React should get at least 0.5% of that portion which is around £3m on top of current revenue stream. The issue is UK as a whole do not take covid as seriously as other countries. In Singapore and China deep cleaning soared as many people were using the anti bacterial cleaning service. I am the only person in my neighbourhood who paid for a deep clean from a local company. Everyone else using normal wipes from Tesco’s etc...

I heard companies like wilkos etc... are using their own staff to clean instead of contracting SME. It is unfortunate but the likelyhood in UK could be a second wave as we are not too serious about the threat. Over the weekend police tried their best to get the public to properly social distance but failed as people didn’t listen.

I don’t think it’s institutional buys the values seem too small.

I am still trying to calculate profit or even turnover for interims but so difficult without news. The only guaranteed income we will receive so far is NHS contract, Rail Contract and An Eastbourne midlands university contract. I think the total income from the 3 will be around £1m for this year. The only assumption I can make is that the business will recur 80% of revenue from last years turnover £2.48m. What’s this means is that I am assuming a revenue of £3.5m as a minimum in 2020. So potentially £1.75m turnover in June and a small profit of £50k I am using a model to calculate using last years costs. I think the cash will be interesting figure as I think the company has used up the payments from rail road to pay for that contract and they will use the invoice facility they were given. If we can show a cash balance of £350k in interims then the company has done good. If these predictions are true then intrinsic value will be between 3p - 4p. But we need contract value news and whether the company has a strong recurring income model.

Hi beardozer - it’s a tough market and a lot of the holdings I have are either in break even or small profit. A lot i sold before crash. One big boo boo this year but that was my fault and went against basic principles and got stung by NMC Fraud, but didn’t lose too much sleep on that as was one of my smaller holdings. But I have also seen good profit ODX and Barc and pray the REAT, INSE and SUR make it big.

The risk value is perceived for me REAT is high risk like many stocks for you it may be low risk, however not sure how you came to that conclusion. I have also invested in REAT but for me I know it’s more a gamble and am willing to lose a small amount on this as the reward will be good. It won’t be like GDR or ODX but we could see a good 300% plus rise of the interims are Good.

Also note REATs finals they made £3.1m and turned a loss. Revenue was lower than previous year. For REAT to move into value for shareholders they need to better manage costs and turn a profit out of c.3m revenue in addition no one knows what % of revenue for 2020 will be recurring for all we know all their contracts from last year could have been cancelled, so it is important for shareholders to be advised on whether 80% is recurring into 2020.

I do look at oil stocks who are also high risk.

I am actually hoping for sub 1p and will top up. This is a huge risk play. But the beauty is you can invest with very little in here and I can pay for a new second hand car with the profits if the 7th June results are good.

But the lack of news around how they make £3m a year and who they supply and whether this is recurring into 2020 is a mystery. This is basic accounting and comms and I do always tread with an an air of caution when companies do not clearly articulate their plans.

The loan was agreed before hand hence the trading update is accurate. The paperwork etc can be done after this is quite common. Ie when taking a mortgage your offer and acceptance can be done a month in advance but the actual signing of the documents can be in later ie the offer documents etc...

Also I prefer a lending facility over issuing more shares. This gives more confidence with the balance sheet. REAT so far seem like they have a prudent balance sheet management process. But only June 7th will clarify the position. This can go 2 ways either June results show healthy balance sheet so a sky rocket to 3-4p ( if you do simple ratios you can see the intrinsic value will be around 4p sp) or they just did not make any money and the contracts they had were one off which means that this will collapse. The trading statement and recent news on flytipping makes me believe that the results will be good. We all live in hope HODL

Yes agreed. I wish the company could state as this type of info makes investing more fruitful.