REACT Group plc (AIM:REAT.L), the leading specialist cleaning, hygiene and decontamination company announces its unaudited results for the six-month period ended 31 March 2021 ("Interim Report").
for the six months ended 31 March 2021
Gross profit (£'000)
Gross profit margin
Adjusted EBITDA (£'000)
Net profit for the period (£'000)
Earnings per share (basic) (pence)
Earnings per share (adjusted) (pence)
Net cash (£'000)
· Group revenue up 20% to £2,509,000
· Gross profit up 46% to £1,018,000
· Gross profit margins increased by 733 basis points to over 40%
· Adjusted EBITDA is calculated excluding exceptional costs (see note 5 for details)
· Net profit of £74,000 and basic EPS of 0.01p
· Adjusted EPS of 0.07p (see note 6 for details)
· The acquisition of Fidelis Contract Services Ltd ("Fidelis") was completed on 26 March 2021. No contribution from Fidelis is included in these interim figures, but the assets and liabilities for Fidelis as at 31 March 2021 are included in the Group's Consolidated Statement of Financial Position as at 31 March 2021
· The initial cash consideration of £1.5m was paid from REACT's existing cash resources
· The cash balance at the period end represents the balance for the enlarged Group following the payment of the cash consideration in connection with the acquisition of Fidelis
Commenting on the results Shaun Doak, Chief Executive Officer of REACT, said:
"We are delighted with the results for H1 2021; REACT continues to demonstrate momentum in growth and improvements in operational performance and profitability.
Although COVID-19 continues to present both opportunities and challenges to different aspects of the business we have continued to make strategic progress, investing in sales and marketing, new technology and people to drive growth, increase operational efficiency and improve customer value.
H2 has started well; Fidelis, acquired at the end of March 2021, reported record trading months in April and May to continue their solid track record of growth. This, together with important post-period customer contract wins for REACT, announced on 20 April 2021, 26 April 2021 and 18 May 2021, support a strong positive outlook for the medium to long term."