React Books Interim Profit As Covid-19 Lifts Demand For Deep Cleaning

(Alliance News) - React Group PLC reported its first-ever interim operating profit on Monday ...

Alliance News 29 June, 2020 | 11:48AM
Email Form

(Alliance News) - React Group PLC reported its first-ever interim operating profit on Monday resulting from a sharp revenue rise that React credited to its redefined business model and better business processes.

The cleaning, hygiene and decontamination company has its headquarters in Swadlincote, England. It posted a GBP63,000 operating profit for the six months ended March 31, swinging from a GBP59,000 loss a year before. Profit after tax and finance cost was GBP50,000, compared to a GBP59,000 loss.

React's improved results resulted from a 31% revenue rise to GBP2.1 million from GBP1.6 million.

Chief Executive Shaun Doak said: "We are delighted to report the company's first period of operating profit, the culmination of work across the business to redefine the business model, strengthen business processes and engage with customers in a more consistent manner."

Doak added: "As a people-orientated business we have not been immune to the challenges brought about by Covid-19; however the company has experienced an increase in demand for professional deep cleaning and decontamination services as we strive to help organisations in the UK reduce risk and return their properties to safe commercial use.

"The second half of the year has started well, with good trading across key sectors, especially healthcare, rail and facilities management. We remain confident of delivering a performance ahead of management expectations for the year to September 30 including a full-year maiden profit."

Shares in React were down 7.5% at 1.46 pence in London on Monday morning.

By Anna Farley;

Copyright 2020 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
REACT Group PLC 1.20 GBX -9.43 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies