React’s revenues showed strong performance in the year to September 2020, thanks to cleaning in core sectors and Covid-19 decontaminations.
As an AIM-listed company (ticker: REAT.L), we’re always pleased to share news of our performance. And we’re particularly pleased to announce our trading update for the year ended 30th September 2020. React Specialist Cleaning has continued to make strong progress in the period. We achieved 42% organic growth in revenue to a preliminary £4.4 million. (Please note that all 2020 figures are preliminary and remain subject to audit). The equivalent figure for the 12 months ended 30th September 2019 was £3.1 million
React’s revenues going from strength to strength
Growth in revenue in 2020 has been the result of both strong underlying performance in the core business and demand driven by 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. This was not true of every sector, however. Work declined at the height of lockdown in the judiciary where we sanitise and decontaminate courtrooms, cells, and custody vehicles. The sector has since been returning to near normal activity as restrictions have eased.
The Board expects profit before tax for the year ended 30th September 2020 to be ahead of market expectations, driven by both Covid-19 related decontaminations and a number of non-Covid-19 related projects. The Company’s financial position is robust and underlying cash generation remained strong during the year ended 30 September 2020. Net cash at 30th September 2020 was also ahead of market expectations at £1.8 million (unaudited figure). React intends to publish its audited results for the year ended 30th September 2020 towards the end of January 2021. And our new financial year has started well, with momentum continuing for core sectors as well as Covid-safety cleaning and decontamination.
React relies on its dedicated cleaning teams to deliver
Shaun Doak, Chief Executive of React Specialist Cleaning, said: "We are pleased to have delivered another year of strong progress in which we saw accelerating organic growth and achievement of the Group’s first full year profit.
The immediate outlook is positive, although we are mindful that the seemingly ever-changing environment in which we work can bring with it both opportunities and challenges. As a management team we are reviewing tactics almost daily to ensure REACT remains an effective solution for our customers, our colleagues remain safe, and the business profitable.
On behalf of the Board, I wish to express our thanks and appreciation to the terrific team that make up the React business. They have responded with focus and commitment throughout, ensuring we continue to deliver services that help our customers return their property to safe operational use."
You can find the full RNS trading update on our website here >
To find out more about React Specialist Cleaning and our performance in the year to 30 September 2020, contact one of the team today.
Post by Shaun D. Doak
Shaun is the CEO of React Group plc., a business dedicated to specialist cleaning, hygiene and decontamination. He is deeply committed to making sure that every one of our company’s clients receives the highest possible level of service. An expert in HVAC and commercial and industrial cleaning methodologies, Shaun has extensive experience in the facilities management and renewable services sector.