25th Apr 2024 11:36
(Alliance News) - React Group PLC on Thursday touted the strength of its pipeline, as it expects to meet annual expectations on the back of a strong first half.
For the six months ended March 31, the Birmingham, England-based cleaning, hygiene and decontamination firm expects to report revenue of GBP10.6 million, up 14% from GBP9.3 million a year prior.
As a result, adjusted earnings before interest, tax, depreciation and amortisation are set to be GBP1.3 million, up 38% from GBP900,000. Gross profit should be GBP2.9 million, up 15% from GBP2.5 million.
Reflecting on the first half, React emphasised the impact of three contract wins, totalling over GBP1.3 million annually. These included an GBP800,000, 3-year renewal and expansion of a facilities management soft services deal with an NHS trust.
Accordingly, Chief Executive Officer Shaun Doak said the board had a "high degree of confidence" in achieving full-year market expectations. Current consensus is for revenue of GBP21.3 million, and adjusted Ebitda of GBP2.5 million.
"We are very pleased with the performance of the group in a year of considerable investment and which sees continued sales momentum across a higher margin business. In addition to the material contracts, the group continues to be awarded numerous small and medium sized wins which highlights its cross-selling capability," said CEO Doak.
Shares in React were trading 4.2% higher at 71.40 pence each in London on Thursday morning.
By Holly Beveridge, Alliance News reporter
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