React Group PLC Trading Update (0992E)
2022年10月26日 - 03:00PM
RNSを含む英国規制内ニュース (英語)
TIDMREAT
RNS Number : 0992E
React Group PLC
26 October 2022
26 October 2022
REACT Group plc
("REACT", the "Group" or the "Company")
Trading Update
REACT Group plc (AIM:REAT.L), the leading specialist cleaning,
hygiene and decontamination company is pleased to announce a
trading update in respect of the year ended 30 September 2022
("FY22").
In our interim results, announced on 30 June 2022, we reported a
strong start to the second half of FY22 ("H2") with LaddersFree,
acquired on 12 May 2022, performing in line with management
expectations and that the outlook for the Group as a whole remained
positive.
The Group continued to make good progress in H2. The LaddersFree
performance has been strong, underpinned by multiple new contract
wins in the schools and colleges, and commercial sectors. A key
feature of these contracts is that they have the potential for the
Company to extend the range of services to customers and provide
the Group with additional recurring income.
Fidelis, our hygiene and maintenance division, has also
performed well and has been a significant contributor to EBITDA for
the full year. In order to better position and facilitate
additional anticipated growth in Fidelis and across the wider
Group, the Group has stepped up its capacity and taken on increased
overheads through additional operations and senior sales and
marketing hires. Whilst this has increased costs during the year,
and therefore impacted EBITDA margin, the investment has already,
and is continuing to have, a positive impact with increased sales
momentum particularly with small to medium sized contract wins and
a growing pipeline of potential new contracts across the Group.
Performance in our emergency and decontamination division,
React, where contracts are higher margin and tend to be more
one-off and reactive, is still in the process of returning to
normal levels following the end of lockdown measures and changes in
working practices arising from this. Despite slower than expected
growth in this division in FY22, performance has shown an
improvement with increasing revenues generated in this division and
a particularly strong Q4 which has persisted into the start of the
current financial year.
Subject to audit, revenues for the year ended 30 September 2022
are expected to be approximately GBP13.6 million ( FY22 market
forecast: GBP13.6m) (30 September 2021: GBP7.1 million) with
Adjusted EBITDA* of approximately GBP1.0 million (FY22 market
forecast: GBP1.3m) (30 September 2021: GBP0.79 million) . The
Group's balance sheet remains strong, t he Company's cash balance
on 30 September 2022 was approximately GBP1.53 million (30
September 2021: GBP0.57 million). In addition to the cash balance
in the bank, the Company has an ID facility of GBP2.0 million,
against which it had drawn down GBP0.5 million on 30 September 2022
and a 5-year term loan of GBP1.0 million.
* adjusted for exceptional items relating to the acquisition of
LaddersFree , Fidelis and investigating other potential acquisition
targets, as well as costs associated with the new loan
facility.
Trading in the last three months of the year ended 30 September
2022, and into the current financial year, has been especially
strong across the Group, with all divisions continuing to win a
broad spread of business providing the positive margin contribution
and cash generation we are seeking. This positive start underpins
the Board's optimistic outlook for the current financial year.
The Board also provides a further update on the deferred
consideration payable in cash to the vendors of Fidelis. During the
year to 31 March 2022, Fidelis generated revenue of GBP6.6 million,
gross profit of GBP1.5 million and EBITDA of GBP0.5 million. As
such, the Board now anticipates the maximum deferred consideration
payable, including associated acquisition costs due to advisers,
will be up to approximately GBP0.3 million and will be made in four
equal instalments between October 2022 and March 2024.
Commenting on the trading update Shaun Doak, Chief Executive
Officer of REACT, said:
"Our cautious but positive outlook following H1 proved to be an
accurate assessment of H2 performance in our Fidelis and React
divisions, although in both cases Q4 performance has shown good
growth which has continued so far in the current financial year.
LaddersFree has performed particularly well since acquisition and
has seen a number of new contract wins. The nature of these
contracts provides us with both recurring income and potential to
provide ancillary services. Despite the volatile macro-economic
domestic and international background, the markets we are
addressing are large and fragmented, providing significant
opportunities for growth. We remain confident that the high quality
services the Group provides will continue to be very much in demand
and that we will meet our growth expectations for the current
year."
For more information:
REACT Group Plc
Shaun Doak, Chief Executive Of cer Tel: +44 (0) 1283 550
Andrea Pankhurst, Chief Financial Officer 503
Mark Braund, Chairman
Singer Capital Markets
(Nominated Adviser / Broker)
Will Goode / Amanda Gray (Corporate Tel: +44 (0) 207 496
Finance) 3000
Rachel Hayes (Corporate Broking)
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEAEESAAKAFAA
(END) Dow Jones Newswires
October 26, 2022 02:00 ET (06:00 GMT)
React (LSE:REAT)
過去 株価チャート
から 2 2024 まで 3 2024
React (LSE:REAT)
過去 株価チャート
から 3 2023 まで 3 2024