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React signals strong revenue growth
StockMarketWire.com
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Cleaning, hygiene and decontamination company, React Group, has said it has continued to make strong progress in the period, achieving an estimated 19% organic growth in revenue to approximately £2.5 million for the six months ended 31 March 2021.
The company has also said it expects a 43% organic growth in gross profit to approximately £1 million (six months ended 31 March 2020: £0.7 million).
The company said the growth was the result of strong underlying performance in the core business alongside some demand for COVID-19 decontaminations.
Healthcare, rail and facilities management sectors performed well, augmented by incremental business in other areas such as education and residential care homes.
React carried out a large proportion of high-margin work in the period helping to drive the gross profit margin to around 40%, approximately 700-basis points higher than the same period last year.
The board expects Ebitda (before exceptional items relating to the acquisition of Fidelis and some restructuring) to be in excess of £350k, materially higher than the same period last year.
These numbers do not include any contribution from the recent acquisition of Fidelis Contract Services Limited, details of which were announced on 29 March 2021.
The company said its financial position is robust and underlying cash generation remained strong during the period. Net cash at 31 March 2021 was £771k.
This figure is after payment of the initial consideration for the Fidelis acquisition (£1.5m in cash) and a proportion of the associated transaction costs, the remainder of which (approximately £170k including VAT) is payable in the second half of the Company's financial year.
At 9:03am: (LON:REAT) React Group Plc share price was 0p at 0.98p
Story provided by StockMarketWire.com
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