Results round-up: React Group, Horizonte Minerals, Range Resources

Specialist provider of rapid response deep cleaning and emergency decontamination services, React Group, announced its final results for the year to 30 September on Friday - its first full year since listing on AIM in mid-2015 via a reverse takeover.

The AIM-traded firm said turnover for the period was £2.4m - compared to £700,000 for the shorter reporting period from 24 June to 30 September 2015 - with a cost of sales of £1.4m, up from £350,000 in the short 2015 period.

It posted a pre-tax loss of £150,000, widening from £40,000 in the abridged 2015 year.

The company’s cash position remained strong, the board claimed, at £1.1m.

On the operational front, React said it managed to revamp its sales team during the period, while it closed the EPUK division, and reportedly improved marketing with a “more focussed” sales force.

“After a challenging time with the EPUK management, we made the decision to close that side of the business,” said chief executive Grahame Rummery.

“The core business, React specialist cleaning, has performed well during this period and we remain positive about its future.

“We are confident we will have a positive 2017 and look forward to the rest of the year.”

Horizonte Minerals

Shares in Horizonte Minerals are up almost 2% after it booked a marginally wider full-year pre-tax loss and confirmed achieving several milestones at the Araguaia nickel project in Brazil.

"These [milestones] include the delivery of a pre-feasibility study, the receipt of our preliminary environmental licence, and raising the [£9m] funds to deliver a feasibility study in 2017," the company said in a statement.

"We are now focused on taking this project up the value curve, through the Feasibility Study process and into development as one of the lower cost ferro-nickel operations in the market, benefiting from its high grade resource and low capital intensity."

Horizonte's full-year pre-tax loss was £1.7m, from £1.5m. It possessed a strong balance sheet with net assets of £37m.

Range Resources

Range Resources released its unaudited half-yearly report for the six months ending 31 December on Friday, with revenues increasing by 38% to $3.8m, which the board said was mainly due to a higher realised oil price of $42 per barrel.

The AIM-traded company said its operating expenses improved by 9% to $40 per barrel, and it retained a “healthy” unrestricted cash position of $20.6m, up from $13m at the start of the period.

Its board said it was “encouraged” by the improved financial performance seen in the core operations of the company during the period compared to the second half of 2016, adding that its balance sheet remained “sound” with total assets of $152m and no debt payments due within the next 15 months.

Following the agreement to acquire RRDSL, Range said it would no longer be able to rely upon the funding arrangement with LandOcean for future work undertaken in Trinidad, and instead will fund work programmes through cash on hand and revenues generated from production.

Based on available funding, the company reassessed the work programme and production outlook for Trinidad and as a result chose to fully impair the remaining goodwill related to the Trinidad assets of $29m.

The balance sheet valuation of Trinidad did not take into consideration the value in the earlier stage exploration and appraisal acreage in Trinidad, and the board said it continued to believe there is substantial value to shareholders within the overall Trinidad asset portfolio.

Range’s net loss for the period, post-impairment, was $35.1m, widening from $18.7m.

Its calculated underlying net profit after tax for the period demonstrated what the board called “significant positive progress”, with its loss reducing 23% to $7.3m.