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React Group PLC on Wednesday said its earnings grew during its most recent financial year, despite challenging market conditions and subdued demand. Shares in the Birmingham, England-based provider of cleaning and soft facilities management services were down 12% at 75.50 pence each in London on Wednesday morning. React said adjusted earnings before interest, tax, depreciation and amortisation for the year that ended September 30 rose 4.3% to £2.4 million from £2.3 million last year. ‘The directors believe that adjusted Ebitda and adjusted measures of earnings per share provide shareholders with a meaningful representation of the underlying earnings arising from the group’s core business,’ React explained. The group’s pretax profit edged up 13% to £287,000 from £251,000 during the year, while post-tax profit fell 94% to £18,000 from £50,000 a year prior. This was partly driven by a tax payment of £138,000, compared to the firm’s receipt of a £2,000 credit the year before. Revenue climbed 5.5% to £20.7 million from £19.6 million, while cost of sales increased 4.8% to £15.0 million from £14.3 million. Administrative expenses were up 7.7% to £5.4 million from £5.0 million. Chief Executive Officer Shaun Doak said: ‘I am pleased to share the strong performance of React, reflecting a significant period of achievement driven by robust organic growth and enhanced profitability. ‘The first few months of FY25 have delivered results that align with our expectations for the group. While we remain mindful of the ongoing macroeconomic uncertainty in our markets, demand for our essential reactive and planned services remains strong. To address subdued demand in specific end markets and rising operating costs, including increases in National Insurance contributions and the National Living Wage, the group is taking proactive steps to mitigate these challenges. ‘Our reactive services have proven to be resilient, and our market-leading businesses, supported by an experienced management team, have a strong track record of navigating challenging times. Looking ahead, we see significant opportunities as we focus on integrating the group, enhancing cross-selling and upselling efforts, and driving cost efficiencies to strengthen our position further.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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