28th Oct 2025 07:00
28th 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 30th 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 30th September 2025 (31st 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 30th 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 27th 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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