Picture of React logo

REAT React News Story

0.000.00%
gb flag iconLast trade - 00:00
IndustrialsSpeculativeMicro CapNeutral

REG - React Group PLC - Interim Results

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240529:nRSc1574Qa&default-theme=true

RNS Number : 1574Q  React Group PLC  29 May 2024

29 May 2024

REACT Group plc

("REACT", the "Group" or the "Company")

 

Interim Results

 

REACT Group plc (AIM:REAT.L), the leading specialist cleaning and soft
facilities management services company is pleased to announce its unaudited
interim results for the six-month period ended 31 March 2024.

 

Financial highlights

·    Revenue increased by 13% to £10,566k (H1 2023: £9,320k)

o  Repeat/recurring revenue greater than 85%

·    Gross profit increased by 15% to £2,868k (H1 2023: £2,484k)

·    Gross profit margin strengthened by 40 basis points to 27.1% (H1
2023: 26.7%)

·    Adjusted EBITDA* increased by 35% to £1,281k (H1 2023: £951k)

·    Cash and cash equivalents as at 31 March 2024 of £1,490k (H1 2023:
£650k)

·    Free cash flow increased by 35% to £923k (H1 2023: £684k)

·    Basic earnings per share of 0.41p (H1 2023:  loss of 0.41p)

·    Adjusted EBITDA* earnings per share of 6.02p (H1 2023: 4.51p)

 

Strategic and operational highlights

·    Secured three significant contracts totaling over £1.3m annually,
alongside a continued cadence of small to mid-sized contracts

·    Successfully renewed a material 3-year contract with a large
university, almost doubling the scope and size to £1.3m per year

·    Additionally, renewed three significant specialist cleaning contracts
in the healthcare sector, collectively valued at just over £0.5m per year

·    LaddersFree digitalisation project is progressing, timetable for user
acceptance testing is over the summer - project and system go live subject to
user acceptance testing, anticipated for later in the year.

·    The Group is mostly complete with moving its banking facilities to
one consolidated relationship with HSBC to support operational effectiveness
of the business and its growth ambitions

 

Current trading and outlook

·    Maintained strong sales momentum and secured higher margin business
underscoring the strength of the Group's value proposition and customer
acquisition strategy

·    Pipeline for the remainder of the year remains robust providing the
Board with a high degree of confidence in achieving full year consensus market
expectations**

*Adjusted EBITDA represents earnings before separately disclosed acquisition,
impairment of intangibles, share-based payments and other restructuring costs
(as well as before interest, tax, depreciation and amortisation).  This is a
non-IFRS measure.

**Current consensus FY24 Revenue & Adjusted EBITDA market expectations of
£21.25m & £2.5m respectively

 

Commenting on the results Shaun Doak, Chief Executive Officer of REACT, said:

 

"We are delighted with the Group's performance, particularly in a year
characterised by significant investments. Despite the challenges, we have
maintained strong sales momentum and secured higher margin business, which is
a testament to our strategic efforts and operational efficiencies.

 

"In addition to securing new material contracts, the Group has also achieved
numerous small and medium-sized wins, whilst simultaneously renewing and
enlarging existing contracts. This consistent success across various deal
sizes underscores the quality of the Groups value proposition and is testament
to our effective selling and cross-selling to drive growth.

 

"Looking ahead, the pipeline for the remainder of the year remains strong.
This solid foundation provides the Board with considerable confidence in our
ability to meet full year market expectations. We believe that our strategic
investments and diversified contract wins position us well for sustained
success."

 

 

For more information:

 

 REACT Group                           Tel: +44 (0) 1283 550 503
 Shaun Doak, Chief Executive Officer
 Spencer Dredge, Chief Financial Officer

 Mark Braund, Chairman

 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
 Stephen Norcross / Nicholas Chambers

 IFC Advisory - Financial PR & IR      Tel: +44 (0) 20 3934 6630
 Graham Herring / Zach Cohen

 

 

About Us:

REACT Group plc, the UK's leading specialist cleaning and soft facilities
management services business, operates with three divisions: LaddersFree, one
of the largest commercial window cleaning businesses in the UK; Fidelis
Contract Services ("Fidelis"), a contract cleaning and facilities maintenance
business; and REACT business, which primarily provides a solution to emergency
and specialist cleaning situations, both through long-term framework
agreements and on an ad-hoc basis.

 

RESULTS SUMMARY & STRATEGY

 

Strategy

 

At the recent trading update in April 2024, REACT announced that the positive
trading momentum had continued into the first half of 2024, resulting in a
record trading performance for the Group in the initial months of the
financial year. The Board is pleased to report that this positive trend has
continued with significant sales growth in the period. Consequently, revenues
for the six-month period are £10.6 million, up from £9.3 million in 2023.
The Group achieved gross profit of £2.9 million, compared to £2.5 million in
the previous year, and an Adjusted EBITDA of £1.3 million, a significant
increase from £1.0 million in 2023.

 

The Group has generated robust recurring and repeat revenues, representing
greater than 85% of revenue generated in the period, with the improved revenue
mix reflecting higher margin repeat business and operational synergies across
the business. This margin enhancement underscores the Group's strategic focus
on sustainable growth and profitability.

 

The Group continues to demonstrate robust performance from its sales and
marketing initiatives, consistently securing new business wins that contribute
to its overall growth. This success is not only due to effective sales
strategies but also follows investment into the Groups marketing capability.
 Additionally, the business is experiencing strong momentum in renewing
existing contracts, providing clear evidence of the quality of the Group's
value proposition, along with its ability to forge strong customer
relationships which results in high levels of customer satisfaction. The value
of these renewals has increased as a result of cross-selling relevant Group
service offerings and, providing comprehensive solutions that meet the diverse
needs of our customers.

 

In line with the long-term growth objectives, the Group is now strategically
shifting away from lower-margin opportunities. This pivot allows REACT to
concentrate on higher-margin business segments that offer greater returns and
sustainable growth. The strategy moving forward is to leverage the Group's
strengths in sales and marketing, capitalise on cross-selling to existing
clients, and prioritise high-margin business opportunities to ensure continued
success.

 

Examples of the Company's successes during the period include:

 

Maintaining momentum in securing new business, noting the recently announced
three significant contracts totaling over £1.3 million annually and the £0.5
million agreement with a leading UK facilities management (FM) business. These
contracts sit alongside multiple small and medium-sized contract wins to
underscore the commitment to growth and the ability to forge strong and
lasting relationships with key partners.

 

The first contract is a substantial £0.8 million three-year renewal and
expansion of an FM soft services agreement with an NHS trust in the Midlands.
This agreement includes an option to extend the partnership to five years,
reflecting the trust's confidence in REACTS's services and consistent delivery
of high-quality results. Additionally, the Group has extended its Core Vendor
agreement with the UK operations of one of the world's largest FM companies
for another two years. Moreover, the Company has secured a new £0.5 million
agreement with a leading UK FM business. This contract involves providing a
single point of service delivery for emergency decontamination services to its
customers, including several well-known and recognisable brands. This new
partnership not only expands the Group's service portfolio but also enhances
the reputation for delivering critical high-stakes services efficiently and
effectively.

 

These recent contract wins continue to evidence the strategic focus on growing
the business through valuable partnerships and high-quality service delivery.
They also demonstrate the ability to adapt and respond to the needs of
clients, ensuring REACT remains at the forefront of the FM sector.

 

The Group also renewed several long-term contracts during the period,
including a material 3-year agreement with a large university in the Midlands,
where the enlarged contract of £1.3 million per year was almost double the
size of the previous period due to strategic increases in the services
provided by the Group.

 

Post period end, the Group successfully renewed three significant specialist
cleaning contracts in the healthcare sector, collectively valued at just over
£0.5 million per year. These contracts include some modest expansions in
scope, which will increase revenue. These renewals not only bolster our
confidence in this year's performance but also enhance the Company's ongoing
recurring revenue profile.

 

At the full year results announced in February 2024, the Group announced its
intention to implement a considered programme to invest in people, processes
and systems which will enable the Group to improve operational efficiency and
scale with robust systems. This investment programme is proceeding to plan on
time and on budget and is expected to be fully operational early in the new
financial year.

 

Trading performance

 

Following a strong close to the year ended 30 September 2023, trading
performance has continued robustly in the period. Revenue increased 13% to
£10,566k (H1 2023: £9,320k), generating a gross profit contribution of
£2,868k (H1 2023: £2,484k), at a gross margin of 27.1% (H1 2023: 26.7%).

 

Administrative expenses marginally increased by 2% over the prior period to
£2,560k (H1 2023: £2,499k). Administrative expenses including non-cash
expenses amounted to £917k (H1 2023: £928k) and is made up of £898k of
amortisation and depreciation (H1 2023: £904k) and share-based payments of
£19k (H1 20233: £24k).

 

Adjusted EBITDA for the Group increased by 35% over the prior period to
£1,281k (H1 2023: £951k), mainly resulting from increased gross margin
contribution from stronger sales in the period. Adjusted EBITDA represents a
45% conversion from gross profit (H1 2023: 38%).

 

The Group reported a profit in the period of £87k (H1 2023: loss of £86k)
and basic earnings per share of 0.41p (H1 2023: loss of 0.41p). Adjusted
EBITDA earnings per share increased to 6.02p (H1 2023: 4.51p). Earnings per
share has been calculated based on the new shares in issue following the share
consolidation which occurred on 2 April 2024 for all reported periods.

 

Cash flow

 

Cash generated from continuing operations amounted to £1,147k (H1 2023:
£829k). Cash generated in the period benefitted from profitable trading,
adjusted for non-cash items and adding back depreciation and amortisation of
£898k (H1 2023: £904k) and share-based payments of £19k (H1 2023: £24k).

 

Cash outflows from financing activities amounted to £154k (H1 2023: £145k),
resulting from the £80k repayment of the term loan (H1 2023: £62k), interest
payments of £78k (H1 2023: £71k) and lease liabilities of £26k (H1 2023:
£37k), offset by the income from shares issued as a result of the £30k of
warrants exercised in the period.

 

In the period the Group paid out £1,023k (H1 2023: £938k) in deferred
consideration in relation to the acquisition of LaddersFree and Fidelis,
contributing to cash used in investment activities in the period of £1,143k
(H1 2023: £1,013k).  The final deferred consideration payments of £983k is
payable in the second half of year ended 30 September 2024.

 

The above cash flows resulted in cash and cash equivalents at the period end
of £1,490k (H1 2023: £650k).

 

Free cash flow generated in the period amounted to £923k (H1 2023: £684k) an
increase of 35%.

 

 

Post Balance Sheet events

 

The share consolidation & capital reduction was approved by shareholders
at the annual general meeting of the Company 28 March 2024, separate
resolutions at the recent AGM held on the 28th March, were overwhelmingly
approved by shareholders and have now been implemented.

 

Following the Court hearing on the 30 April 2024, the Company has affected a
capital reduction by effectively cancelling both the Share Premium account of
£10,909,617 and Capital Redemption Reserves account of £3,336,916 and
creating a distributable reserve equal to the balance of both.

 

The share consolidation became effective after the interim period on the 2
April 2024.  For the purposes of calculating the earnings per share, these
interim accounts and comparative periods have been prepared on the basis that
the share consolidation was effective for all reporting periods.

 

People

 

Our focus on fostering a talented and empowered workforce continues to propel
us forward. We've leveraged our expanding scale to invest strategically in
both people and technology.

Bespoke training and development programs have nurtured internal talent,
allowing us to promote key personnel and cultivate a culture of continuous
learning.  This investment translates to a more skilled and engaged
workforce, ultimately driving greater performance and employee satisfaction.

Alongside our commitment to talent development, we continue to actively expand
our sales and marketing capabilities through strategic investments in people
and technology.  These investments will equip our team with the tools and
resources needed to unlock new opportunities and facilitate future growth
opportunities.

The strong financial performance that we've achieved would not be possible
without the unwavering dedication of our incredible team. Each member has
played a vital role in our collective success. We extend our deepest gratitude
to our colleagues for their continued passion and commitment. It is through
their tireless efforts that we continue to succeed and push the boundaries of
what's possible.

 

Outlook

 

Trading in the second half of the year has remained robust, continuing the
strong momentum from the first half. The improved mix of recurring revenue and
higher margins gives the business increased visibility and a more reliable
revenue stream. The pipeline for the rest of the year continues to be strong,
providing the Board with significant confidence in the ability to meet full
year consensus market expectations. The Group is confident that the strategic
investments and diversified contract wins position the Business well for
continued success.

 

 

Shaun Doak

Chief Executive Officer

29 May 2024

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 31 March 2024

                                                                                     Unaudited                            Unaudited                          Audited

                                                                                      6 months ended 31 March 2024        6 months ended 31 March 2023       Year ended

                                                                                                                                                             30 September 2023
                                                                               Note  £'000                                £'000                              £'000

 Continuing Operations
 Revenue                                                                             10,566                               9,320                              19,582

 Cost of Sales                                                                       (7,698)                              (6,836)                            (14,343)

 Gross Profit                                                                        2,868                                2,484                              5,239

 Administrative expenses                                                             (2,560)                              (2,499)                            (4,988)

 Adjusted EBITDA*                                                                    1,281                                951                                2,272
 Depreciation                                                                        (77)                                 (83)                               (166)
 Amortisation                                                                        (821)                                (821)                              (1,643)
 Exceptional items                                                                   (56)                                 (38)                               (131)
 Share-based payments                                                                (19)                                 (24)                               (81)

 Operating profit/(loss)                                                             308                                  (15)                               251

 Finance cost                                                                        (78)                                 (71)                               (203)
 Taxation                                                                            (143)                                -                                  2
 Profit/(loss) for the period                                                        87                                   (86)                               50

 Other comprehensive Income                                                          -                                    -                                  -

 Profit/(loss) for the financial period attributable to equity holders of the        87                                   (86)                               50
 company

 Basic, diluted earnings and adjusted EBITDA per share                         3
 Basic earnings/(loss) per share                                                     0.41p                                (0.41)p                            0.24p
 Diluted earnings/(loss) per share                                                   0.37p                                (0.41)p                            0.21p
 Adjusted basic EBITDA per share                                                     6.02p                                4.51p                              10.75p
 Adjusted diluted EBITDA per share                                                   5.50p                                4.51p                              9.76p

 

*Adjusted EBITDA represents earnings before separately disclosed acquisition,
impairment of intangibles, share-based payments and other restructuring costs
(as well as before interest, tax, depreciation and amortisation).  This is a
non-IFRS measure.

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2024

                                        Unaudited      Unaudited                 Audited

                                        As at 31       As at 31 March 2023       As at 30

                                        March                                    September 2023

                                        2024
 Assets                                 £'000          £'000                     £'000
 Non-current assets
 Intangibles - Goodwill                 5,533          4,209                     5,446
 Intangibles - Other                    3,216          4,859                     4,037
 Property, plant and equipment          237            185                       172
 Right-of-use assets                    56             73                        78
 Deferred tax asset                     143            244                       123
                                        9,185          9,570                     9,856
 Current assets
 Stock                                  3              11                        7
 Trade and other receivables            4,660          4,301                     4,425
 Cash and cash equivalents              1,518          1,379                     2,120
                                        6,181          5,691                     6,552

 Total assets                           15,366         15,261                    16,408

 Equity
 Shareholders' Equity
 Called-up equity share capital         2,669          2,644                     2,644
 Share premium account                  10,915         10,910                    10,910
 Reverse acquisition reserve            (5,726)        (5,726)                   (5,726)
 Capital redemption reserve             3,337          3,337                     3,337
 Merger relief reserve                  1,328          1,328                     1,328
 Share based payments                   144            68                        125
 Accumulated losses                     (4,036)        (4,259)                   (4,123)

 Total Equity                           8,631          8,302                     8,495

 Liabilities
 Current liabilities
 Trade and other payables               3,679          2,861                     3,601
 Loans and other borrowings             188            890                       641
 Lease liabilities within one year      30             50                        40
 Deferred consideration                 907            1,315                     1,758
 Corporation tax                        541            195                       262
                                        5,345          5,311                     6,302
 Non-current liabilities
 Loans and other borrowings             585            746                       665
 Lease liabilities after one year       23             34                        38
 Deferred consideration                 -              851                       -
 Deferred tax liability                 782            17                        908
                                        1,390          1,648                     1,611

 Total liabilities                      6,735          6,959                     7,913

 Total Liabilities and Equity           15,366         15,261                    16,408

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 31 March 2024

                                                             Unaudited            Unaudited            Audited

                                                             6 months ended       6 months ended       Year

                                                             31 March 2024        31 March 2023        ended

                                                                                                       30 September 2023
                                                             £'000                £'000                £'000

 Net cash inflow from operations                             1,147                829                  2,444

 Cash flows from financing activities
 Proceeds of share issue                                     30                   25                   24
 Lease liability payments                                    (26)                 (37)                 -
 Bank Loans                                                  (80)                 (62)                 (181)
 Interest paid                                               (78)                 (71)                 (203)

 Net cash outflow from financing                             (154)                (145)                (360)

 activities

 Net cash from investing activities                          -                    -                    5

 Disposal of fixed assets
 Capital expenditure                                         (120)                (37)                 (119)
 Acquisition of subsidiary                                   (1,023)              (938)                (1,309)
 Exceptional costs paid                                      -                    (38)                 -

 Net cash outflow from investing activities                  (1,143)              (1,013)              (1,423)

 Net (decrease)/increase in cash, cash                       (150)                (329)                661

 equivalents and overdrafts

 Cash, cash equivalents and overdrafts at                    1,640                979                  979

 beginning of period

 Cash, cash equivalents and overdrafts at end of period      1,490                650                  1,640

 

 

 Analysis of cash, cash equivalents and overdrafts:

 Cash at bank and in hand      1,518    1,379        2,120
 Overdrafts                    (28)     (729)        (480)
                               1,490    650          1,640

 

 

 

 

 Reconciliation of profit for the period to cash outflow from operations

                                                     Unaudited                 Unaudited                     Audited

                                                     6 months                  6 months ended                Year

                                                     ended                     31 March 2023                 ended

                                                     31 March                                                30 September 2023

                                                     2024
                                                     £'000                     £'000                         £'000

 Profit/(loss) for the period                          87                      (86)                          50
 Decrease in stocks                                  4                         -                             4
 Increase in receivables                             (254)                     (47)                          (50)
 Increase in payables                                181                       1                             573
 Depreciation and amortisation charges               898                       904                           1,809
 Finance costs                                       78                        71                            203
 Tax charge/(credit)                                 143                       -                             (2)
 Exceptional acquisition costs                       -                         38                            -
 Profit on disposal of fixed assets                  -                         -                             2
 Share based payment                                 19                        24                            81
 Tax paid                                            (9)                       (76)                          (226)
 Net cash inflow from operations                     1,147                     829                           2,444

Consolidated Statement of Changes in Equity

For the six months ended 31 March 2024

 

 

                        Share Capital  Share     Merger Relief  Capital         Reverse           Share Based Payments      Accumulated Deficit  Total Equity

                                       Premium   Reserve        Redemption      Acquisition       Reserve

                                                                Reserve         Reserve

                        £'000          £'000     £'000          £'000           £'000             £'000                     £'000                £'000

 At 1 October 2023      2,644          10,910    1,328          3,337           (5,726)           125                       (4,123)              8,495

 Issue of shares        25             5         -              -               -                 -                         -                    30
 Share based payments   -              -         -              -               -                 19                        -                    19
 Profit for the period  -              -         -              -               -                 -                         87                   87

 At 31 March 2024       2,669          10,915    1,328          3,337           (5,726)           144                       (4,036)              8,631

 At 1 October 2022      2,624          10,905    1,328          3,337           (5,726)           44                        (4,173)              8,339

 Issue of shares        20             5         -              -               -                 -                         -                    25
 Share based payments   -              -         -              -               -                                           -                    24

                                                                                                  24
 Loss for the period    -              -         -              -               -                 -                         (86)                 (86)

 At 31 March 2023       2,644          10,910    1,328          3,337           (5,726)           68                        (4,259)              8,302

 As 1 October 2022      2,624          10,905    1,328          3,337           (5,726)           44                        (4,173)              8,339

 Issue of shares        20             5         -              -               -                 -                         -                    25
 Share based payments   -              -         -              -               -                 81                        -                    81
 Profit for the period  -              -         -              -               -                 -                         50                   50

 At 30 September 2023   2,644          10,910    1,328          3,337           (5,726)           125                       (4,123)              8,495

 

 

Notes to the interim financial statements

 

1.            Basis of preparation

 

These consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") as
adopted by the United Kingdom and on a historical basis, using the accounting
policies which are consistent with those set out in the Group's annual report
and accounts for the year ended 30 September 2023. The interim financial
information for the six months ended 31 March 2024, which complies with IAS 34
'Interim Financial Reporting' were approved by the Board of Directors on 29
May 2024.

 

The unaudited interim financial information for the six months ended 31 March
2024 does not constitute statutory accounts within the meaning of Section 435
of the Companies Act 2006. The comparative figures for the year ended 30
September 2023 are extracted from the statutory financial statements which
have been filed with the Registrar of Companies and contain an unqualified
audit report and did not contain statements under Section 498 to 502 of the
Companies Act 2006.  As disclosed in note 3, for the purposes of calculating
earnings per share, these interim accounts and comparative periods are
presented on the basis that the share consolidation was effective for all
reporting periods.

 

 

2.            Segmental Reporting

 

In the opinion of the Directors, the Group has one class of business, being
that of specialist cleaning and decontamination services. Although the Group
operates in only one geographic segment, which is the UK, it has also analysed
the sources of its business into the segments of Contract Maintenance,
Contract Reactive, Ad Hoc work and the Group overhead.

 

                                       Unaudited 6 months ended

                                       31-Mar-24
                                       Contract Maintenance  Contract Reactive  Ad Hoc Work  Group Overhead  Total
                                       £'000                 £'000              £'000        £'000           £'000

 Revenue                               8,031                 1,439              1,096        -               10,566
 Cost of Sales                         (5,778)               (1,101)            (819)        -               (7,698)
 Gross Profit                          2,253                 338                277          -               2,868
 Other Operating Income                -                     -                  -            -               -
 Administrative Expenses               (1,704)               (212)              (184)        (460)           (2,560)
 Operating profit/(Loss) for the year  549                   126                93           (460)           308
                                       1,384                 144                121          (368)           1,281

 Adjusted EBITDA
                                       8,162                 985                775          5,444           15,366

 Total Assets
                                       (1,997)               (725)              (534)        (3,479)         (6,735)

 Total Liabilities

 

 

                                       Unaudited 6 months ended

                                       31-Mar-23
                                       Contract Maintenance  Contract Reactive  Ad Hoc Work  Group Overhead  Total
                                       £'000                 £'000              £'000        £'000           £'000

 Revenue                               6,807                 1,181              1,332        -               9,320
 Cost of Sales                         (4,924)               (885)              (1,027)      -               (6,836)
 Gross Profit                          1,883                 296                305          -               2,484
 Other Operating Income                -                     -                  -            -               -
 Administrative Expenses               (1,620)               (227)              (259)        (393)           (2,499)
 Operating profit/(Loss) for the year  263                   69                 46           (393)           (15)
                                       1,076                 94                 96           (315)           951

 Adjusted EBITDA
                                       7,840                 980                947          5,494           15,261

 Total Assets
                                       (3,166)               (878)              (749)        (2,166)         (6,959)

 Total Liabilities

 

 

 

 

 Audited 12 months ended
                                           30-Sep-23
                      Contract                                     Contract                Ad Hoc                  Group             Total
                      Maintenance                                  Reactive                Work                    Overhead
            £'000                                        £'000                   £'000                                     £'000
 Revenue                                       14,321                    2,751                   2,510                                   19,582
 Cost of Sales                             (10,475)                (1,999)                 (1,869)                                   (14,343)
 Gross Profit                                    3,846                       752                     641                                   5,239
 Other Operating Income                     -                       -                       -                                         -
 Administrative Expenses                   (3,149)                 (437)                   (488)                   (914)             (4,988)
 Operating Profit/(Loss) for the year                697                     315                     153           (914)                       251

 Adjusted EBITDA                                 2,331                       380                     255           (694)                   2,272

 Total Assets                                    8,850                   1,088                   1,014                   5,456           16,408

 Total Liabilities                         (3,837)                 (866)                   (784)                   (2,426)           (7,913)

 

 

 

3.            Earnings per Share (basic and adjusted)

 

The calculations of earnings per share (basic and adjusted) are based on the
net profit/(loss) and adjusted EBITDA per share before; interest, tax,
depreciation, amortisation of acquired intangible assets, exceptional items
and share-based payments. Aligned to IFRS reporting standards, the earnings
per share calculation is based on the new capital structure post the 50:1
share consolidation, the effective date of the consolidation was 2 April
2024.  The comparative periods earnings per share are also based on the new
capital structure.

 

                                                                    Unaudited       Unaudited            Audited

                                                                    6 months        6 months ended       Year

                                                                    ended           31 March 2023        ended

                                                                    31 March                             30 September 2023

                                                                    2024
                                                                    £'000           £'000                £'000
 Profit/Loss for the financial period                               87              (86)                 50

 Finance cost                                                       78              71                   203

 Taxation                                                           143             -                    (2)
 Operating profit/(loss)                                            308             (15)                 251
 Adjustments:                                                       77              83                   166

 Depreciation
 Amortisation                                                       821             821                  1,643
 Exceptionals                                                       56              38                   131
 Share based payments                                               19              24                   81
 Adjusted EBITDA                                                    1,281           951                  2,272
                                                                    Number          Number               Number

 Weighted average shares in issue for basic earnings per share      21,264,446      21,107,394           21,130,245
 Weighted average dilutive share options and warrants               2,041,701       1,835,014            2,137,172
 Average number of shares used for dilutive earnings per share      23,306,147      22,942,408           23,267,417

                                                                    pence           pence                pence
 Basic profit/(loss) per share                                      0.41p           (0.41)p              0.24p
 Diluted profit/(loss) per share                                    0.37p           (0.41)p              0.21p
 Adjusted EBITDA earnings per share                                 6.02p           4.51p                10.75p
 Adjusted diluted EBITDA earnings per share                         5.50p           4.51p                9.76p

 

 

 

 

Copies of this Interim Report are available from the Company Secretary, Holly
House, Shady Lane, Birmingham B44 9ER and on the Company's website
www.reactsc.co.uk/react-group-plc (http://www.reactsc.co.uk/react-group-plc)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IR APMFTMTBTBTI

Recent news on React

See all news