Last checked at 13 Dec 2022 07:00
13 December 2022
REACT Group plc
("REACT", the "Group" or the "Company")
Company Update
REACT Group plc (AIM:REAT.L), the leading specialist cleaning, hygiene and decontamination company is pleased to announce a further update since our Trading Update of 26 October 2022 in which we reported very positive performance for the year ended 30 September 2022 ("FY22") and a strong start to the current financial year ("FY23").
LaddersFree has continued to perform strongly. In the three months to 31 August 2022 turnover was over £1m, with turnover increasing in each month since the acquisition in May 2022. This was achieved through a combination of further contract wins and mobilisations of contracts won previously. These included new contracts with some outlets of a national restaurant chain and parts of a large hotel owner operator in London. A key feature of these contracts is that they each have potential for LaddersFree to extend the range of services to customers and therefore to provide the Group with additional recurring income.
Fidelis, our hygiene and maintenance division, also continued to perform well. There were further significant public and private sector contract extensions and wins following our increased investment in the business last year. A number of new contracts are for three- or five-year terms providing the Group with secure, long-term income.
React, our emergency and decontamination division, has continued its strong recovery seen in H2 FY22 with a broad range of new orders and work carried out.
We are therefore pleased that trading in the last three months of FY22 and into the current financial year, has been especially strong across the Group. All divisions continue to win a broad spread of business providing positive margin contribution and cash generation as well as providing long term income and underpinning future performance. This positive start underpins the Board's optimistic outlook for the current financial year.
Commenting on the trading update Shaun Doak, Chief Executive Officer of REACT, said:
"Our teams in all divisions continue to work hard to secure new profitable contracts and build sustainable growth and longer-term predictable income across the Group. The key to our success lies in the high-quality services we provide to our customers, and we will continue very much to ensure that this remains the case. I look forward to reporting further positive progress as our financial year progresses."
For more information:
REACT Group Plc | |
Shaun Doak, Chief Executive Ofcer Andrea Pankhurst, Chief Financial Officer Mark Braund, Chairman | Tel: +44 (0) 1283 550 503 |
Singer Capital Markets (Nominated Adviser / Broker) |
|
James Moat / Philip Davies
| Tel: +44 (0) 207 496 3000 |
IFC Advisory (Financial PR / IR) | |
Graham Herring / Zach Cohen
| Tel: +44 (0) 20 3934 6630 |
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.