UK's React Group H1 revenue rises 9%, helped by aquaflow services

React

19/05/2026 07:12

Overview

UK specialist FM services provider's H1 revenue rose 9% yr/yr to £13.2 mln

Gross margin improved to 32.4%, driven by operational efficiency and higher-value work

Adjusted EBITDA rose 7% to £1.5 mln; loss per share narrowed from prior year

Outlook

React enters H2 with stable operations and resilient recurring revenues

Company sees steady demand for essential reactive and planned services

Board maintains disciplined approach for remainder of FY26 amid extended contract cycles

Result Drivers

RECURRING REVENUE - Co said recurring/repeat revenue remained above 85%, providing strong visibility and supporting performance

AQUAFLOW SERVICES - Strong performance from 24hr Aquaflow Services contributed to revenue growth, per co

DISCIPLINED SALES APPROACH - Co attributed improved gross margin to a more disciplined, value-led sales approach focused on profitable work

Company press release: ID:nRSS8030Ea

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 13.19 mln
H1 Net Income
-GBP 72,000
H1 Adjusted EBITDA
GBP 1.50 mln
H1 Gross Margin
32.40%
H1 Gross Profit
GBP 4.27 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for React Group PLC is GBp94.50, about 103.2% above its May 18 closing price of GBp46.50

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)