24th Apr 2023 09:23
(Alliance News) - React Group PLC shares were up on Monday, after it said it expects to report higher revenue and profit in the first half of its 2023 financial year.
Shares in the Birmingham, England-based cleaning, hygiene and decontamination firm were up 7.0% to 1.23 pence each in London on Monday morning.
React expects to report revenue of about GBP9.3 million in the six months ended March 31, up from GBP5.1 million a year earlier. It also expects gross profit to more than double in the period to GBP2.5 million from GBP1.2 million and adjusted earnings before interest, tax, depreciation and amortisation to increase to GBP925,000 from GBP133,000.
The company noted that it has experienced "good" sales growth in all three divisions of the business.
React said that LaddersFree, a commercial window cleaning business in the UK, continues to strengthen its pipeline of repeat business with well-known brands. It added that it has been awarded contracts to provide services for retailers, restaurants, hotels and car dealerships.
However, React previously has reported that Fidelis experienced a "slightly slower start" to the period, but said this has since recovered "significantly."
The React business, which primarily provides a solution to emergency and specialist cleaning situations, has continued its steady progress and its bespoke services remain in demand, the company added.
Chief Executive Officer Shaun Doak said: "The improved mix of recurring revenue as well as higher margins provides the business with greater visibility and a more dependable revenue stream. The pipeline for the remainder of the year is strong, which provides cautious optimism and underpins the Board's confidence in full year results being in line with market expectations."
By Sophie Rose, Alliance News reporter
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