24th Oct 2019 11:41
(Alliance News) - Cleaning and decontamination firm React Group PLC said Thursday it expects a rise in profit for its recently ended financial year, following its business transformation.
For the year to the end of September, React expects gross profit to be GBP880,000, a 28% rise from GBP690,000 the year before, following an improvement in gross margins to 28% from 21%.
However, revenue is set to decline by 6.1% to GBP3.1 million from GBP3.3 million the prior year.
As at September 30, React's cash balance was GBP440,000, compared to GBP423,000 the same date the year before.
"We have prioritised quality of earnings following the restructuring of the business earlier in the year, focusing on specialist cleaning and decontamination markets in which our capabilities are strongest and most valued. This has led to improvements in cost management, operating margins and cash collection," said Executive Chair Gill Leates.
"Through the year we have built a strong team led by Shaun Doak, managing director, who joined the company in March 2019. Having evolved the structure and focus of the business, the foundations are now in place for further growth, and profitability," Leates added.
Shares in React were untraded on Thursday, last quoted at 0.385 pence in London.
By Dayo Laniyan; [email protected]
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