React’s results confirm another year of growth, with EBITDA increasing by 6% to £2.4m (FY23: £2.3m). Year to date, trading has been in line with expectations. However, the outlook statement includes an element of caution against an uncertain macro backdrop and rising cost pressures, not least due to the rise in NICs and the NLW. Reflecting these cost pressures and adding prudence to forecasts, we reduce our EBITDA forecasts by £400k p.a. (see p.2). Despite this, strong growth is still expected, driven by recent M&A. React’s shares now trade on a Sep. ’25 P/E rating of 10.3x, in line with its long term average. However, recent M&A has improved the quality, scale and growth potential of the business. We continue to target a Sep. ’26 P/E rating of 12x to drive our 119p TP (reduced from 135p) and remain at Buy.
