React H1 revenues grow, EBITDA surges

Cleaning firm React Group said on Thursday that revenues and profits had both grown in the six months ended 31 March.

React said revenues had grown 14% to £10.6m as it delivered a record trading performance, with good sales growth across all three divisions of the business, while gross profits rose approximately 15% to £2.9m and adjusted underlying earnings improved 38% to £1.3m.

The AIM-listed group also said it continues to deliver "strong recurring revenues" in excess of 85% and stated the associated margin improvement was reflected in an enhanced revenue mix with higher margin repeat business and operational synergies across the firm.

Chief executive Shaun Doak said: "We are very pleased with the performance of the group in a year of considerable investment and which sees continued sales momentum across a higher margin business. In addition to the material contracts, the group continues to be awarded numerous small and medium sized wins which highlights its cross-selling capability. The pipeline for the remainder of the year remains robust which provides the board with a high degree of confidence in achieving full year market expectations."

As of 1210 BST, React shares were up 4.23% at 71.40p.

Reporting by Iain Gilbert at Sharecast.com