|
React Group PLC on Tuesday said its outlook was positive, despite swinging to a pretax loss in its recently-ended financial year. The Birmingham, England-based cleaning, hygiene and decontamination firm reported a pretax loss for the year ended September 30 of £567,000, swinging from a profit of £130,000 in the prior year. The company said revenue amounted to £13.7 million, increasing 78% from £7.7 million the year prior. React said it was previously a project orientated business with inconsistent revenue flows, but now has more than 80% of its revenue contracted and recurring. The company said its acquisition of window cleaning business LaddersFree Ltd for £8.5 million in May added a revenue contribution of about £1.6 million. Chief executive Officer Shaun Doak said: ‘We are delighted to report a strong financial performance for the year. The acquisition of LaddersFree has been transformational as it continues to win new blue chip clients. The transaction has not only broadened the group’s offering but has enabled the business to cross-sell other business services into existing and new customers.’ React noted that cost of sales has increased to £10.4 million, almost doubling from £5.3 million the year prior, while administrative expenses stretched to £3.8 million from £2.3 million. The company also said it paid corporation tax amounting to £134,000, swinging from a credit of £259,000 the year earlier. React said its outlook was positive, following a record performance for the company in the first quarter of financial 2023, which also saw it win a £800,000 contract with a UK fast food chain, to clean 350 locations. ‘We believe the group is well-placed to deliver another exciting year of growth,’ the company said. React shares were largely flat 1.15 pence per share on Tuesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
