REACT Group plc (REACT), the leading specialist cleaning and decontamination company, has announced its results for the half year to March 2021. They do not include any contribution from the acquisition of Fidelis (completed on 26 March 2021) but do include the assets and liabilities for Fidelis at 31 March 2021. Strong progress has been achieved across the business with good growth in revenues, a 733bps rise in gross margin and a significant increase in underlying EBITDA. The Group remains well
Companies: REACT Group Plc
REACT Group plc (REACT), the leading specialist cleaning, decontamination and hygiene company, has announced two new significant contract awards in less than a week confirming the Group’s growing presence in nationwide decontamination and cleaning. The most significant, announced today and from an existing customer, could when fully mobilised generate revenues of up to c.£2m. The second, announced on 20 April, also from an existing customer, is worth just over c.£0.6m. We are currently keeping e
REACT Group plc (REACT), the leading specialist cleaning, decontamination and hygiene company, has provided the market with an update on trading for the six-months to end March 2021. This shows very encouraging progress in revenue, gross profit, gross profit margin and adjusted EBITDA against the comparative period, all of which was generated organically. The acquisition of Fidelis was concluded at the period end and will therefore be consolidated in REACT’s second half period. As noted in our e
REACT Group plc (REACT), the leading specialist cleaning, decontamination and hygiene company, has announced the acquisition of Fidelis Contract Services (Fidelis), a successful commercial cleaning, hygiene and facility support service business. It has been acquired for an initial consideration of £1.7m financed through the Group’s own resources with a deferred element of up to £3.05m. Maximum consideration is capped at £4.75m and is based on 4.75x EBITDA. This maiden acquisition is an important
REACT Group plc (REACT), the specialists in deep cleaning services for customers in the public and private sectors, has announced encouraging full year results, marginally ahead of our increased forecasts and a significant turnaround from the losses reported in previous years. Cash balances at the year-end were also substantially higher than forecast at £1.8m. The new management team has delivered on its promises in what has been a challenging year and we continue to remain very positive on the
REACT Group plc (REACT), the specialists in deep cleaning services for customers in the public and private sectors, has announced an encouragingly positive trading update for the financial year to September 2020 stating that the Group’s maiden profit before tax will be ahead of market expectations. Consequently we are raising our PBT forecast from £152k to £182k. Cash balances at the year-end were also higher than forecast at £1.8m and we continue to remain very positive on the prospects for the
REACT Group plc (REACT), the specialists in deep cleaning services for customers in the public and private sectors, has announced a new contract win with an existing facilities management (FM) client. This contract is in addition to the work that REACT already carries out for this client and is unrelated to COVID-19. Given the underlying activities of the business, an increasing recurring revenue stream, contract awards announced in the year to date and the maiden profit generated in H1, we feel
REACT Group plc (REACT) is exploiting a gap in the market for specialist deep cleaning services for customers in the public and private sectors, with revenues split 50/50 between reactive work and regular maintenance. The Covid-19 pandemic has led to a significant upturn in activity in certain sectors (such as healthcare and transport) but temporarily weaker demand from others (such as hospitality). While its Covid-related work is by no means its biggest revenue generator, the legacy of the pand
REACT Group (REACT) specialises in extreme cleaning and decontamination services in a range of market sectors including hospitals, transport, police, prisons, education and leisure. Its specialist deep cleaning services are often undertaken in difficult locations and/or in sensitive circumstances and are of a complexity non-specialist companies find difficult to replicate. Customers include public sector organisations and private companies with revenues typically split evenly between reactive cl
FRP Advisory Group, UK professional services firm specialising in restructuring advisory. Raising £80m (£20m primary). Expected market cap £190m. Compound annual growth of 16.4 per cent. in revenue and 10.9 per cent. in operating profit since the beginning of FY17.o Strong average EBITDA margins of 51 per cent. over FY17 to FY19, and consistently strong cash conversion
Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO
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Sensyne Investments - healthcare technology company that creates value from accelerating the discovery and development of new medicines and improving patient care. Raising £60m. Mkt Cap £225m. Due 17 Aug.
Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug.
Vitesse Media (VIS) — To be renamed Bonhill Group. RTO of the trade and assets of InvestmentNews, a B
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VR Education Holdings—a virtual reality software and technology company. Raising £6m, mkt cap c €22m. Due 12 March SimplyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money | Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd | Stirling Industries—Acquisition vehicle focusing on industrials. Offer TBA. D
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Fusion Antibodies— Sch1 from the Belfast based contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Offer to raise £5.5m for the Company and £1.075m for selling shareholders at 82p with market cap of £18.1m. Due 18 Dec | Erris Resources PLC—a mineral exploration and development company currently focused on two geographic areas. Offer TBC, expected
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Clean Invest Africa—Introduction due around 14 Nov. Vehicle established to identify investment opportunities and acquisitions in renewable and clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way that will aid the development of the African continent.
City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a thr
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REACT Group (REAT.L) | CPP Group (CPP.L) | Range Resources (RRL.L) | Adgorithms (ADGO.L) | Cerillion (CER.L) | Ilika (IKA.L) | Private & Commercial Finance Group (PCF.L) | Panmure Gordon & Co (PMR.L) | Ortac Resources (OTC.L) | Oxford BioDynamics (OBD.L)
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Companies: Vertu Motors PLC
Consumer demand for Escape Hunt’s experiential leisure sites has rebounded strongly since reopening. At the same time, the company continues to gain scale with acquisitions outperforming and site rollouts on track to exceed targets. Such solid trading and operational progress improve the company’s long-term profit outlook.
Companies: Escape Hunt Plc
Vertu has released an unscheduled trading update, delivering another earnings upgrade to 2022E, this time in excess of 30%. This is driven by the strength of the used car market, although we believe Vertu is outperforming particularly in terms of securing supply. We believe the shares remain significantly undervalued, and that it remains well placed in the sector.
Lookers has announced a fourth upgrade to 2021 forecasts following an unscheduled H1 trading update yesterday. As a result, we are lifting our current year forecast for underlying PBT by 19% from £51.2m to £60.8m. In what is expected to be an exceptionally strong period for Lookers, we expect the Group to deliver EPS of 12.5p in 2021E, close to what our previous blue-sky EPS was of 13.2p back in February. However, we assume this level of performance is not sustained going into 2022E and 2023E as
Companies: Lookers plc
Due to the very stringent restrictions applied in its core markets, IAG’s Q2 ended up similar to its Q1: in line operating results following a weaker-than-expected top line. The capacity outlook still seems depressed which is discouraging the market.
Companies: International Consolidated Airlines Group SA
SCS Group’s full year trading update for the 53 weeks to 31st July shows that the strong demand that has been a hallmark of post lockdown periods over the past 15 months has continued, with LFL orders through the Group’s weeks 47 to 53 up by 23.7% on pre-Covid levels. Lower costs underpin a 16% upgrade to FY21 CPTP expectations, whilst the strong order book drives a 17% upgrade to our FY22 CPTP forecast. We look for EPS of 32.2p and 30.8p for FY21 and FY22 respectively. Year end net cash of £87.
Companies: ScS Group plc
Photo-Me has detailed that the Group’s trading performance was better than expected in May, June and July. This was driven by a stronger than anticipated recovery in photobooth activity, mainly in continental Europe. Guidance for FY 2021 has been raised to sales of c.£210m (previously c.£200m) and adj. PBT of £25-30m (previously £21-24m). We have consequently upgraded our FY 2021E EPS by 22% but leave our FY 2022E forecasts onwards unchanged for now. In effect, we assume the recovery is taking p
Companies: Photo-Me International plc
Pendragon released a trading update last week that increased its guidance for FY21 underlying PBT to £55-60m, up from £45-50m in the June pre-close update. The Group attributes this to the continued momentum in the used car market throughout July as we have seen across the sector and is also backed up looking at the latest data from CAP HPI. As a result of this update, we have increased our FY21 underlying PBT forecast by 18.6% to £55.6m. We have not upgraded our forecasts in the outer years ref
Companies: Pendragon PLC
What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
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There were no surprises in M&B’s Q3 trading results. The lfl sales improved gradually since the lockdown restrictions were eased in the UK. The publican also fared slightly ahead of close competitors. The focus now shifts to the profitability details which management will share with the full-year numbers. Our thesis factors in the probability that the pandemic will not worsen in the coming quarters. Positive recommendation maintained on the stock’s valuation.
Companies: Mitchells & Butlers plc
Companies: Safestay Plc
E-commerce giant, Amazon witnessed a recent dip after Jeff Bezos selling off close to $5 billion worth of the company’s stock. His exit from the CEO role could be a cause of concern for some but we continue to remain optimistic on the stock. The company continued its string of impressive results in the first quarter of 2021, with both top and bottom line surpassing the analyst estimates. The strength of Amazon Web Services (AWS) coupled with consumers turning to e-commerce during the pandemic re
Companies: Amazon.com, Inc. (AMZN:NAS)AMAZON COM (AMZN:NYSE)
Following a challenging 2019, the COVID-19 pandemic extended the task of restoring stakeholder confidence in Lookers, one of the UK’s leading automotive retailers. With the legacy issues now largely dealt with, Lookers can address the challenges and opportunities presented by COVID-19 and the evolution of the UK car market as the adoption of electric vehicles (EVs) accelerates. The strong balance sheet supports continued investment in technology and brands and, with a leading market position, Lo
The opportunity of scaling a new and exciting value for money pizza concept, Franca Manca is significant. Recent interims testified to this expansion confidence. The group is led by a hugely experienced management team in the casual dining arena and their interests are firmly aligned. Low free float is the main ST drawback but we envisage a liquidity event on a 12m view to resolve this issue. We are positive on Fulham Shore and would encourage investors to take a much closer look.
Companies: Fulham Shore Plc
Sale of Fowler Welch
Companies: Jet2 PLC