Interim Results & Trading Update
27/05/2025 07:00
RNS Number : 0898K
React Group PLC
27 May 2025
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION PURSUANT TO ARTICLE 7 OF EU REGULATION 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
27 May 2025
REACT Group plc
("REACT", the "Group" or the "Company")
Interim results and trading update
REACT Group plc (AIM: REAT), the leading specialist support services provider to the FM industry, announces its unaudited interim results for the six-month period ended 31 March 2025.
The Company's acquisition of 24h Aquaflow Services in October 2024 has generated a positive contribution to both revenue and EBITDA in the first five months following consolidation and, as a result, the Group has expanded in the first half of FY 2025.
Financial highlights
· Revenue increased by 14% to £12.1m (H1 2024: £10.6m) driven by the recent acquisition of 24hr Aquaflow Services.
o First time five months' revenue contribution from 24hr Aquaflow Services of £2.8m.
· Repeat or recurring revenue greater than 85% (H1 2024: >85%).
· Gross profit increased by 35% to £3.9m (H1 2024: £2.9m).
· Gross profit margin strengthened by 490 basis points to 32.0% (H1 2024: 27.1%) as the Group benefitted from higher gross margins in 24hr Aquaflow Services.
· Adjusted EBITDA* increased by 12% to £1.43m (H1 2024: £1.28m).
o First time five months' Adjusted EBITDA contribution from 24hr Aquaflow Services of £827k.
· Free cash flow of £204k (H1 2024: £923k), after exceptional items mainly relating to the acquisition of 24hr Aquaflow Services and corporation tax.
· Cash and cash equivalents as at 31 March 2025 of £2.8m (H1 2024: £1.5m).
o Net debt of £1.9m as at 31 March 2025 includes £3.2m from the £3.5m new term loan drawn in the period to fund the acquisition of 24hr Aquaflow Services
· Basic (loss)/earnings per share of (1.18p) (H1 2024: 0.41p), reflecting an incremental increase in amortisation and depreciation as a direct result of the acquisition of 24hr Aquaflow Services.
· Adjusted EBITDA earnings per share of 6.07p (H1 2024: 6.02p).
Operational & strategic highlights
· Robust financial performance despite headwinds - first-half Group revenue grew 14% to £12.1m, with gross profit up 35% to £3.9m and Adjusted EBITDA increasing 12% to £1.4m and reflecting the contribution from 24hr Aquaflow Services acquired in late October 2024.
· Resilient revenue mix - >85% of revenue is recurring or repeat, providing stability while shifting toward higher-margin services to support long-term profitability.
· Strategic expansion - the integration of 24hr Aquaflow Services has strengthened cross-selling opportunities and unlocked new revenue streams, including a 12-month commercial drainage contract with a major FM-sector client in London.
· Driving operational efficiencies - the rollout of Project Sparkle, the Group's digital platform for commercial window cleaning, is underway. This initiative will streamline processes, enhance customer interaction, and create new cross-selling opportunities, ultimately improving operational efficiency and driving scalable revenue growth.
· Navigating market headwinds - rising employer national insurance and living wage costs are pressuring customers, affecting demand for specialist cleaning services. While the Group can pass on statutory cost increases, it has taken a collaborative approach, ensuring fair pricing and maintaining strong customer partnerships with minimal churn. Meanwhile, 24hr Aquaflow Services' strong performance has helped mitigate some of these pressures.
· Effective customer engagement strategy - REACT has proactively worked with customers to implement fair cost adjustments while ensuring service continuity. This flexible approach has helped preserve customer relationships but has had some impact on revenue and profitability.
· Balance sheet strength - £2.8m in cash and cash equivalents, providing financial stability and ample working capital headroom.
Current trading & outlook
· Despite market challenges, REACT remains focused on mid-market opportunities, where shorter decision cycles continue to drive cross-selling and upselling, reinforcing customer retention and long-term value creation.
· Deals that experienced delays in H1 2025 are now progressing, supporting re-emerging revenue growth which may benefit the second half of the current financial year.
· While challenges remain in specialist cleaning and soft FM services, 24hr Aquaflow Service' performance has helped offset some of these pressures, reinforcing our ability to adapt.
· In light of prevailing sector specific and global economic pressures extending business decision cycles, particularly for higher value contracts, the Board is adopting a cautious approach to conversion of new business in the second half of FY 2025 and results are now expected to be below market expectations.
· 24hr Aquaflow Services maintains strong momentum, with a steady flow of new opportunities.
*Adjusted EBITDA represents earnings before separately disclosed acquisition, impairment of intangibles, share-based payments and other restructuring costs (as well as before interest, tax, depreciation and amortisation). This is a non-IFRS measure.
Commenting on the results Shaun Doak, Chief Executive Officer of REACT, said:
"REACT has delivered a robust first-half performance, despite market headwinds impacting organic growth. Following the acquisition of 24hr Aquaflow Services, revenue increased 14% to £12.1m, with Adjusted EBITDA up 12%, reflecting the strength of our recurring revenue base and proactive cost management, while also enhancing our financial and operational infrastructure to support the business' continued scaling.
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. Investments in Project Sparkle, customer engagement, and service optimisation continue to enhance efficiency, positioning REACT well for long-term, sustainable growth despite broader market challenges. The Board is taking a more cautious approach with respect to the expected outturn for the current financial year but firmly believes that REACT is well positioned to capitalise on an improvement in the economy."
Investor Presentation
REACT Group plc announces that Shaun Doak, Chief Executive Officer, Spencer Dredge, Chief Financial Officer and Mark Braund, Chair, will provide a live presentation relating to the half year results via Investor Meet Company on 29 May 2025, 12:30 BST.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 28 May 2025, 09:00 BST, or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet REACT GROUP PLC via:
https://www.investormeetcompany.com/react-group-plc/register-investor
Investors who already follow REACT GROUP PLC on the Investor Meet Company platform will automatically be invited.
For more information:
REACT Group Tel: +44 (0) 1283 550 503
Shaun Doak, Chief Executive Officer
Spencer Dredge, Chief Financial Officer
Mark Braund, Chair
Singer Capital Markets Tel: +44 (0) 207 496 3000
Nominated Adviser & Joint Broker
Philip Davies / Alex Bond / Oliver Platts
Dowgate Capital - Joint Broker Tel: +44 (0) 203 903 7715
Nicholas Chambers
IFC Advisory - Financial PR & IR Tel: +44 (0) 203 934 6630
Graham Herring / Zach Cohen
About Us:
REACT Group plc is one of the UK's leading support services providers to the facility management (FM) sector, operating across four key service propositions:
· LaddersFree, one of the UK's largest commercial window cleaning businesses, delivering nationwide services.
· Fidelis Contract Services ("Fidelis"), a contract cleaning and soft facilities maintenance provider focused on long-term client partnerships.
· REACT, specialising in emergency and specialist cleaning solutions, offering both long-term framework agreements and rapid response services.
· 24hr Aquaflow Services, a recently acquired commercial drainage and plumbing business serving clients across London and the South East of England.
Strategic overview
REACT has delivered a robust first-half performance, navigating a challenging market with focus and adaptability. Aided by the acquisition of 24hr Aquaflow Services in October 2024, Group revenue increased 14% to £12.1m, with gross profit rising 35% to £3.9m and Adjusted EBITDA up 12% to £1.4m, driven by disciplined execution and the strength of our recurring revenue base, which now accounts for >85% of total revenues.
Macroeconomic pressures and a record comparative period in H1 2024 have influenced organic growth, but the successful integration of 24hr Aquaflow Services has unlocked new revenue streams and expanded cross-selling opportunities. This includes specialist cleaning projects supporting the drainage division and a 12-month commercial drainage contract with a major FM-sector client in London, servicing a landmark location. While challenges remain in specialist cleaning and soft FM services, 24hr Aquaflow Services' performance has helped offset some of these pressures, reinforcing the Group's ability to adapt.
At the same time, sales efforts across the Group have continued with encouraging success, despite longer decision cycles, particularly for high-value deals. Each division has achieved notable wins and strengthened customer relationships.
Alongside operational execution, the Group has continued investing in financial and infrastructure improvements to support long-term growth. Key priorities include strengthening the Finance team, advancing Project Sparkle, and enhancing customer engagement and service delivery.
Additionally, as outlined in our FY 2024 Annual Report & Accounts, the Group made a strategic decision to exit the periodic deep clean business in the rail sector following a shift in service expectations. During and immediately after COVID-19, heightened hygiene requirements drove high-value contracts, but as standards eased, pricing and margins declined to unsustainable levels. This exit from this division removed approximately £1.1m in revenue, which was included in H1 2024 but is now fully absent in H1 2025, impacting year-on-year comparisons. While this affects short-term results, it strengthens the Group's focus on sustainable, high-margin opportunities, ensuring resources are deployed where they drive long-term value.
Sales performance & market dynamics
Despite a slower market and extended decision cycles, particularly for higher-value deals, sales efforts have continued across all divisions, yielding solid results.
Soft FM services at Fidelis secured several upsell and cross-sell opportunities, including two large deals worth approximately £300k annually. Additionally, Fidelis closed four mid-sized contracts with new customers totalling around £100k annually and established breakthrough relationships with two new FM firms focused on void cleaning work in the housing association sector. The division also successfully navigated multiple long-term contract renewals, including three material agreements worth approximately £800k annually.
LaddersFree, the Group's nationwide commercial window cleaning business, has faced challenges due to market headwinds but has successfully retained customers impacted by cost pressures by adjusting service specifications and cleaning frequencies. Sales momentum remains solid, with 45 new customer acquisitions, predominantly in the SME segment, alongside two national contracts with well-known brands and 68 incremental new sites onboarded for existing customers.
REACT's specialist cleaning division experienced a slight slowdown in project work volumes, though this was offset by 18 new customer acquisitions during the period. These customers represent a mix of contracted and ad hoc work, contributing approximately £500k in annualised revenue.
Meanwhile, 24hr Aquaflow Services secured three new FM-sector clients, each presenting opportunities for significant revenue expansion. One of these customers has already signed a contract to service 167 sites for 'first-call' services, expected to generate approximately £100k per year based on historical trends. Additionally, 24hr Aquaflow Services recently secured a 12-month commercial drainage contract with a major FM-sector client, servicing a landmark London location. This contract reinforces REACT's ability to integrate and scale specialist services across its divisions.
The waterfall graph below provides a breakdown of gross profit contribution between H1 2024 and H1 2025, highlighting the key factors driving changes over the period.
Operational & strategic execution
Cross-selling and upselling remain central to the Group's strategy, strengthening customer relationships and driving additional value across all divisions.
The acquisition of 24hr Aquaflow Services in October 2024 has been a standout success in this regard, demonstrating REACT's ability to integrate niche facilities management operators while unlocking new revenue streams.
Beyond integration efforts, the Group has made targeted investments in financial and operational infrastructure to support continued growth. Strengthening the Finance team, improving customer engagement, and enhancing service delivery remain key priorities.
Meanwhile, Project Sparkle, the Group's digital platform for commercial window cleaning, is actively rolling out. Designed to enhance scalability, operational efficiency, and customer engagement, the platform will streamline operations and unlock new service opportunities. Once fully deployed, it will strengthen revenue growth across the business while improving long-term service capabilities.
Navigating market challenges
Many of the Group's customers continue to face economic pressures, including higher retail business rates, increased labour costs, and statutory changes like higher employer national insurance contributions and an increased living wage. These factors have created financial constraints, particularly in soft FM services, affecting demand and profitability.
In response, the Company has worked proactively with customers to establish fair agreements, allowing it to responsibly pass on statutory cost increases while maintaining service continuity. This approach helps customers balance their budgets effectively while ensuring essential operations continue, reinforcing REACT's role as a trusted partner.
To support customers through these challenges, the Group has adjusted service levels, including reducing cleaning frequencies where appropriate and, in some cases, temporarily pausing services to help customers manage costs without compromising standards. This reduction in activity levels inevitably impacted the revenues generated from these areas of the Group during the period and is expected to continue through the second half of the year, and into FY'26. The strong performance of 24hr Aquaflow Services has helped counteract some of these pressures, showing resilience in drainage and plumbing operations despite broader market challenges.
Cash flow, balance sheet & capital allocation
Cash generated from continuing operations totalled £0.7m, after settling £0.4m in corporation tax, £0.2m in exceptional items (primarily related to the 24hr Aquaflow Services acquisition), and adjusting for non-cash items, depreciation, and amortisation of £1.3m.
Cash flows from financing activities reached £4.1m, which includes drawing a new 4-year £3.5m bank loan and raising £1.1m from a share placing, offset by loan repayments of £0.3m and interest and lease liability payments of £0.1m each.
At period-end, cash and cash equivalents stood at £2.8m, reinforcing the Group's strong liquidity position. Free cash flow for the period was £0.2m, after settling £0.2m in exceptional items, £0.4m in corporation taxes, and £0.3m in capital investments.
At period-end, net debt £1.9m is made up of bank debt £3.9m, finance leases £0.8m and cash and cash equivalents £2.8m. Bank debt includes £3.2m from the £3.5m new term loan drawn in the period to fund the acquisition of 24hr Aquaflow Services.
People & talent strategy
Investing in our people, technology, and operational foundations remains central to our long-term growth strategy. Strengthened financial and management reporting has improved decision-making, while tailored training programs continue to develop internal talent and enhance performance.
The Group has also expanded its sales and marketing capabilities, making targeted investments in business development that will drive future growth.
The Board extends its sincere appreciation to all employees for their dedication, professionalism, and contributions to REACT's success.
Outlook & strategic direction
The Board is mindful of the difficult operating environment with rising costs, inflationary pressures, and evolving regulations affecting businesses across the FM sector. Despite these challenges, REACT has demonstrated resilience, underpinned by strong recurring revenues and a customer-centric approach that fosters long-term partnerships.
Encouragingly, demand for integrated service solutions is growing, with mid-market opportunities offering shorter decision cycles and driving new contract wins, particularly through cross-selling and upselling strategies.
The successful integration of 24hr Aquaflow Services has strengthened the Group's capabilities, unlocking new revenue streams and reinforcing its position as a trusted provider.
Looking ahead, the Board remains confident in its ability to navigate market challenges. Strategic investments in operational efficiencies, digital transformation, and customer engagement including the rollout of Project Sparkle will enhance service delivery and support future growth. As conditions improve, REACT is well-positioned to accelerate growth, leveraging our expanded capabilities to deliver sustainable, long-term value for customers and shareholders alike.
The Board is taking a more cautious approach with respect to the expected outturn for the current financial year but firmly believes that REACT is well positioned to capitalise on an improvement in the economy.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 March 2025
| Unaudited 6 months ended 31 March 2025 | Unaudited 6 months ended 31 March 2024 | Audited Year ended 30 September 2024 | ||||
| Note | £'000 | £'000 | £'000 | |||
| Continuing Operations | ||||||
| Revenue | 12,083 | 10,566 | 20,749 | |||
| Cost of Sales | (8,222) | (7,698) | (15,024) | |||
| Gross Profit | 3,861 | 2,868 | 5,725 | |||
| Administrative expenses | (3,977) | (2,560) | (5,438) | |||
| Adjusted EBITDA* | 1,433 | 1,281 | 2,410 | |||
| Depreciation | (193) | (77) | (138) | |||
| Amortisation | (1,060) | (821) | (1,643) | |||
| Exceptional items | (220) | (56) | (253) | |||
| Share-based payments | (76) | (19) | (89) | |||
| Operating (loss)/profit | (116) | 308 | 287 | |||
| Finance cost | (109) | (78) | (131) | |||
| Taxation | (55) | (143) | (138) | |||
| (Loss)/profit for the period | (280) | 87 | 18 | |||
| Other comprehensive Income | - | - | - | |||
| (Loss)/profit for the financial period attributable to equity holders of the company | (280) | 87 | 18 | |||
| Basic, diluted earnings and adjusted EBITDA per share | 4 | |||||
| Basic (loss)/earnings per share | (1.18)p | 0.41p | 0.08p | |||
| Diluted (loss)/earnings per share | (1.18)p | 0.37p | 0.08p | |||
| Adjusted basic EBITDA per share | 6.07p | 6.02p | 11.18p | |||
| Adjusted diluted EBITDA earnings per share | 5.53p | 5.50p | 10.22p |
| Unaudited As at 31 March 2025 | Unaudited As at 31 March 2024 | Audited As at 30 September 2024 | ||||
| Assets | £'000 | £'000 | £'000 | |||
| Non-current assets | ||||||
| Intangibles - Goodwill | 9,921 | 5,533 | 5,446 | |||
| Intangibles - Other | 3,635 | 3,216 | 2,394 | |||
| Property, plant and equipment | 923 | 237 | 427 | |||
| Right-of-use assets | 793 | 56 | 95 | |||
| Deferred tax asset | 56 | 143 | 58 | |||
| 15,328 | 9,185 | 8,420 | ||||
| Current assets | ||||||
| Stock | 3 | 3 | 3 | |||
| Trade and other receivables | 4,825 | 4,660 | 3,720 | |||
| Cash and cash equivalents | 2,830 | 1,518 | 1,778 | |||
| 7,658 | 6,181 | 5,501 | ||||
| Total assets | 22,986 | 15,366 | 13,921 | |||
| Equity | ||||||
| Shareholders' Equity | ||||||
| Called-up equity share capital | 2,955 | 2,669 | 2,694 | |||
| Share premium account | 1,259 | 10,915 | 10 | |||
| Reverse acquisition reserve | (5,726) | (5,726) | (5,726) | |||
| Capital redemption reserve | - | 3,337 | - | |||
| Merger relief reserve | 1,328 | 1,328 | 1,328 | |||
| Share based payments | 290 | 144 | 214 | |||
| Accumulated surplus/(deficit) | 9,862 | (4,036) | 10,142 | |||
| Total Equity | 9,968 | 8,631 | 8,662 | |||
| Liabilities | ||||||
| Current liabilities | ||||||
| Trade and other payables | 3,460 | 3,679 | 3,240 | |||
| Loans and other borrowings | 1,182 | 188 | 235 | |||
| Lease liabilities within one year | 676 | 30 | 48 | |||
| Deferred consideration | 953 | 907 | - | |||
| Corporation tax | 944 | 541 | 659 | |||
| 7,215 | 5,345 | 4,182 | ||||
| Non-current liabilities | ||||||
| Loans and other borrowings | 2,739 | 585 | 452 | |||
| Lease liabilities after one year | 143 | 23 | 49 | |||
| Deferred consideration | 1,907 | - | - | |||
| Deferred tax liability | 1,014 | 782 | 576 | |||
| 5,803 | 1,390 | 1,077 | ||||
| Total liabilities | 13,018 | 6,735 | 5,259 | |||
| Total Liabilities and Equity | 22,986 | 15,366 | 13,921 | |||
| Unaudited 6 months ended 31 March 2025 | Unaudited 6 months ended 31 March 2024 | Audited Year ended 30 September 2024 | ||||
| £'000 | £'000 | £'000 | ||||
| Net cash inflow from operations | 667 | 1,147 | 2,788 | |||
| Cash flows from financing activities | ||||||
| Proceeds of share issue | 1,115 | 30 | 60 | |||
| Expenses of share issue Lease liability payments | (105) (77) | - (26) | - (42) | |||
| Bank Loans | 3,218 | (80) | (138) | |||
| Interest paid | (109) | (78) | (113) | |||
| Net cash generated/(outflow) from financing activities | 4,042 | (154) | (233) | |||
| Cash flows from investing activities | ||||||
| Capital expenditure | (277) | (120) | (410) | |||
| Acquisition of subsidiary, net of cash acquired | (3,380) | (1,023) | (2,007) | |||
| Net cash outflow from investing activities | (3,657) | (1,143) | (2,417) | |||
| Net increase/(decrease) in cash, cash equivalents and overdrafts | 1,052 | (150) | 138 | |||
| Cash, cash equivalents and overdrafts at beginning of period | 1,778 | 1,640 | 1,640 | |||
| Cash, cash equivalents and overdrafts at end of period | 2,830 | 1,490 | 1,778 | |||
| Analysis of cash, cash equivalents and overdrafts: | ||||||
| Cash at bank and in hand | 2,830 | 1,518 | 1,778 | |||
| Overdrafts | - | (28) | - | |||
| 2,830 | 1,490 | 1,778 | ||||
| Reconciliation of profit for the period to cash outflow from operations | |||||||
| Unaudited 6 months ended 31 March 2025 | Unaudited 6 months ended 31 March 2024 | Audited Year ended 30 September 2024 | |||||
| £'000 | £'000 | £'000 | |||||
| (Loss)/profit for the period | (280) | 87 | 18 | ||||
| Decrease in stocks | - | 4 | 4 | ||||
| Increase in receivables | 127 | (254) | 741 | ||||
| Increase in payables | (234) | 181 | (105) | ||||
| Depreciation and amortisation charges | 1,253 | 898 | 1,781 | ||||
| Finance costs | 109 | 78 | 131 | ||||
| Tax charge | 55 | 143 | 138 | ||||
| Share based payment | 76 | 19 | 89 | ||||
| Tax paid | (439) | (9) | (9) | ||||
| Net cash inflow from operations | 667 | 1,147 | 2,788 | ||||
| Share Capital | Share Premium | Merger Relief Reserve | Capital Redemption Reserve | Reverse Acquisition Reserve | Share Based Payments Reserve | Accumulated surplus/(deficit) | Total Equity | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
| At 1 October 2024 | 2,694 | 10 | 1,328 | - | (5,726) | 214 | 10,142 | 8,662 |
| Issue of shares | 261 | 1,249 | - | - | - | - | - | 1,510 |
| Share based payments | - | - | - | - | - | 76 | - | 76 |
| Loss for the period | - | - | - | - | - | - | (280) | (280) |
| At 31 March 2025 | 2,955 | 1,259 | 1,328 | - | (5,726) | 290 | 9,862 | 9,968 |
| At 1 October 2023 | 2,644 | 10,910 | 1,328 | 3,337 | (5,726) | 125 | (4,123) | 8,495 |
| Issue of shares | 25 | 5 | - | - | - | - | - | 30 |
| Share based payments | - | - | - | - | - | 19 | - | 19 |
| Profit for the period | - | - | - | - | - | - | 87 | 87 |
| At 31 March 2024 | 2,669 | 10,915 | 1,328 | 3,337 | (5,726) | 144 | (4,036) | 8,631 |
| As 1 October 2023 | 2,644 | 10,910 | 1,328 | 3,337 | (5,726) | 125 | (4,123) | 8,495 |
| Issue of shares | 50 | 10 | - | - | - | - | - | 60 |
| Share based payments | - | - | - | - | - | 89 | - | 89 |
| Capital reduction | - | (10,910) | (3,337) | 14,247 | - | |||
| Profit for the period | - | - | - | - | - | - | 18 | 18 |
| At 30 September 2024 | 2,694 | 10 | 1,328 | - | (5,726) | 214 | 10,142 | 8,662 |
| Unaudited 6 months ended 31-Mar-25 | ||||||
| Contract Maintenance | Contract Reactive | Ad Hoc Work | Plc/Holdings | Total | ||
| £'000 | £'000 | £'000 | £'000 | £'000 | ||
| Revenue | 8,524 | 1,928 | 1,631 | - | 12,083 | |
| Cost of sales | (5,316) | (1,004) | (1,117) | - | (7,437) | |
| Direct costs | (498) | (170) | (117) | (785) | ||
| Gross profit | 2,710 | 754 | 397 | - | 3,861 | |
| Administrative Expenses | (1,495) | (433) | (260) | (1,789) | (3,977) | |
| Operating (Loss)/profit | 1,215 | 321 | 137 | (1,789) | (116) | |
| Adjusted EBITDA | 1,367 | 367 | 147 | (448) | 1,433 | |
| Total Assets | 5,804 | 1,620 | 900 | 14,662 | 22,986 | |
| Total Liabilities | (3,672) | (856) | (654) | (7,836) | (13,018) | |
| Unaudited 6 months ended 31-Mar-24 | ||||||
| Contract Maintenance | Contract Reactive | Ad Hoc Work | Plc/Holdings | Total | ||
| £'000 | £'000 | £'000 | £'000 | £'000 | ||
| Revenue | 8,031 | 1,439 | 1,096 | - | 10,566 | |
| Cost of sales | (5,511) | (886) | (778) | - | (7,175) | |
| Direct costs | (267) | (215) | (41) | - | (523) | |
| Gross profit | 2,253 | 338 | 277 | - | 2,868 | |
| Administrative Expenses | (914) | (201) | (164) | (1,281) | (2,560) | |
| Operating profit/(Loss) | 1,339 | 137 | 113 | (1,281) | 308 | |
| Adjusted EBITDA | 1,384 | 144 | 121 | (368) | 1,281 | |
| Total Assets | 4,846 | 976 | 770 | 8,774 | 15,366 | |
| Total Liabilities | (3,193) | (442) | (425) | (2,675) | (6,735) | |
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| a) | Subsidiaries acquired | |||
| Name | 24hr Aquaflow Services Limited | |||
| Principal activity | Commercial Drainage and Plumbing | |||
| Date of acquisition | 25 October 2024 | |||
| Proportion of voting equity interests Acquired Consideration | 100% £7.476m | |||
| b) | Consideration | £'000 | ||
| Cash | 4,116 | |||
| Equity issued | 500 | |||
| Deferred consideration arrangement (included in Other Creditors) | 2,860 | |||
| Total consideration transferred | 7,476 | |||
| c) | Assets and liabilities recognised on the date of acquisition | £'000 | ||
| Non-current assets | 3,291 | |||
| Current assets | 1,968 | |||
| Non-current liabilities | (1,725) | |||
| Current liabilities | (533) | |||
| Net assets acquired | 3,001 | |||
| d) | Goodwill arising on acquisition | £'000 | ||
| Consideration transferred | 7,476 | |||
| Fair value of identifiable net assets acquired | (3,001) | |||
| Goodwill acquired | 4,475 | |||
| e) | Net cash outflow on acquisition | £'000 | ||
| Consideration paid in cash | 4,116 | |||
| Less: cash balances acquired | (736) | |||
| 3,380 | ||||
| Unaudited 6 months ended 31 March 2025 | Unaudited 6 months ended 31 March 2024 | Audited Year ended 30 September 2024 | ||||
| £'000 | £'000 | £'000 | ||||
| (Loss)/profit for the financial period Finance cost Taxation | (280) 109 55 | 87 78 143 | 18 131 138 | |||
| Operating (loss)/profit | (116) | 308 | 287 | |||
| Adjustments: Depreciation | 193 | 77 | 138 | |||
| Amortisation | 1,060 | 821 | 1,643 | |||
| Exceptionals | 220 | 56 | 253 | |||
| Share based payments | 76 | 19 | 89 | |||
| Adjusted EBITDA | 1,433 | 1,281 | 2,410 | |||
| Number | Number | Number | ||||
| Weighted average shares in issue for basic earnings per share | 23,619,251 | 21,264,446 | 21,551,761 | |||
| Weighted average dilutive share options and warrants | 2,312,823 | 2,041,701 | 2,042,097 | |||
| Average number of shares used for dilutive earnings per share | 25,932,074 | 23,306,147 | 23,593,858 | |||
| pence | pence | pence | ||||
| Basic (loss)/profit per share | (1.18)p | 0.41p | 0.08p | |||
| Diluted (loss)/profit per share | (1.18)p | 0.37p | 0.08p | |||
| Adjusted EBITDA earnings per share | 6.07p | 6.02p | 11.18p | |||
| Adjusted diluted EBITDA earnings per share | 5.53p | 5.50p | 10.22p |