REG - React Group PLC - Trading Update

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RNS Number : 0136F  React Group PLC  28 October 2025

28(th) October 2025

 

REACT Group plc

("REACT", the "Group" or the "Company")

 

Trading Update

 

REACT Group Plc (AIM: REAT), the leading specialist support services provider
to the facilities management (FM) industry, announces a trading update for the
year ended 30(th) September 2025 ("FY25").

 

Highlights

·    Revenues expected to be approximately £25.0 million (FY24: £20.7
million)

·    Gross Profit expected to be approximately £8.0 million (FY24: £5.7
million)

·    Adjusted EBITDA¹ expected to be at least £3.0 million (FY24: £2.4
million)

·    Net debt of £5.3 million as at 30(th) September 2025 (31(st) March
2025: £4.8 million; 30 September 2024: net cash of £1.0 million), including
£2.9 million drawn from a new £3.5 million term loan used to fund the
acquisition of 24hr Aquaflow Services

 

The Board is pleased to report a strong trading performance for the financial
year ended 30(th) September 2025, with results ahead of previously revised
market expectations².

 

Revenues increased by approximately 21% year-on-year to c.£25.0 million,
driven by continued momentum across core service lines and the contribution
from the acquisition of 24hr Aquaflow in October 2024. Gross Profit rose by
approximately 40% to c.£8.0 million, reflecting improved operational
efficiency and a diversified service mix.  Adjusted EBITDA¹ is expected to
be at least £3.0 million, representing a c.25% increase on the prior period.

 

Stronger trading in the final quarter of the year led to an expansion in the
Company's working capital position, resulting in an increase in net debt.

 

This performance highlights the resilience of REACT's financial model, which
is underpinned by a balanced mix of high-margin, time-sensitive services and
recurring maintenance contracts.  While some services are more discretionary
than others, it is this blend that delivers both margin strength and revenue
durability.  Recurring revenues continue to exceed 85%, supported by the
Company's ability to respond rapidly and reliably to urgent customer needs
across the UK. This capability continues to drive new customer acquisition
while deepening long-term partnerships.

The Board remains confident in the Company's strategy and disciplined approach
to capital allocation, including its focus on selective acquisitions that
align with REACT's operational strengths and cash-generative profile. The
integration of 24hr Aquaflow Services is progressing well and performing in
line with management expectations.

 

REACT remains committed to delivering sustainable value for all stakeholders
and will provide further detail in its full-year results announcement in
January 2026.

 

Shaun Doak, Chief Executive Officer of REACT Group Plc, commented:

"In a challenging economic environment, our focus on essential services - both
time-sensitive and recurring maintenance - has delivered a strong second-half
trading performance and exceeded previously revised market expectations.  We
have remained disciplined in executing our strategy: deepening customer
relationships, driving cross-sell opportunities, and expanding our service
offering through targeted acquisitions.  Our latest addition, the commercial
plumbing and drainage business, has performed exceptionally well, contributing
immediate growth and unlocking new customer channels.

 

These results reflect the strength of our financial model, which is built on a
balanced mix of high-margin, time-sensitive work and recurring contracts, and
the resilience of our recurring revenue base.  While we enter the new
financial year with confidence in our strategy and operational momentum, we
remain mindful of the fluid economic landscape and the potential challenges it
may present."

 

¹ Adjusted EBITDA represents earnings before separately disclosed acquisition
costs, impairment of intangibles, share-based payments and other restructuring
costs (as well as before interest, tax, depreciation and amortisation.

² Market expectations refers to Group compiled market consensus for FY25
revenue & Adj. EBITDA of £24.50m & £2.75m respectively as at 27(th)
October 2025.

 

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 - Nominated Adviser & Joint Broker                           Tel: +44 (0) 207 496 3000
 Philip Davies / Alex Bond / Oliver Platts

 Dowgate Capital - Joint Broker                                                      Tel: +44 (0) 20 3903 7715
 Amber Higgs / Daniel Ingram

 IFC Advisory - Financial PR & IR      Tel: +44 (0) 20 3934 6630
 Graham Herring / Zach Cohen

 

 

About Us:

 

REACT Group Plc, the UK's leading support services provider to the facilities
management (FM) sector, operates through four distinct divisions:

 

·      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 customer
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 customers across the South East of England

 

This diversified structure enables REACT Group to offer a comprehensive suite
of essential and time-sensitive services, supporting both recurring
maintenance and urgent response needs across the UK.

 

 

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