29th May 2024 08:40
(Alliance News) - React Group PLC on Wednesday celebrated a "robust" interim performance, after meeting revenue and earnings expectations for the first half on several contract wins.
For the six months ended March 31, the Birmingham, England-based cleaning, hygiene and decontamination firm reported revenue of GBP10.6 million, up 14% from GBP9.3 million a year prior. This met expectations set by the firm in April.
According to React, its trading performance "continued robustly" in the first half, following a "strong close" to the year ended September 30. The group credited this in part to three "significant" contracts, which totalled over GBP1.3 million annually, as well as a "continued cadence" of small to mid-sized contracts.
During the period, React also renewed a "material" three-year contract with an unnamed "large" university, almost doubling the scope and size to GBP1.3 million a year.
Adjusted earnings before interest, tax, depreciation and amortisation came to GBP1.3 million, up 38% from GBP951,000 the previous year. Gross profit was GBP2.9 million, up 15% from GBP2.5 million.
Basic earnings per share were 0.41 pence, swung from a loss of 0.41p the year before.
Looking ahead, React said that its pipeline for the rest of the year remains robust. The board has a "high degree of confidence" in achieving full-year consensus market expectations. Current consensus is for revenue and adjusted Ebitda of GBP21.3 million and GBP2.5 million respectively.
"We are delighted with the group's performance, particularly in a year characterised by significant investments. Despite the challenges, we have maintained strong sales momentum and secured higher margin business, which is a testament to our strategic efforts and operational efficiencies," said Chief Executive Officer Shaun Doak.
"Looking ahead, the pipeline for the remainder of the year remains strong. This solid foundation provides the board with considerable confidence in our ability to meet full year market expectations. We believe that our strategic investments and diversified contract wins position us well for sustained success."
By Holly Beveridge, Alliance News reporter
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