REG - React Group PLC - Company Update

ReactAnnouncement

13/12/2022 07:00

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RNS Number : 4577J  React Group PLC  13 December 2022

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 Officer          Tel: +44 (0) 1283 550 503

 Andrea Pankhurst, Chief Financial Officer

 Mark Braund, Chairman

 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.

 

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