REACT Group Plc (LON:REAT), the leading specialist support services provider to the facility management (FM) sector, has announced below its audited final results for the year ended 30 September 2024.
Financial highlights
| · | Revenue increased by 6% to £20.7m (2023: £19.6m)- 87% recurring revenue (2023: 87%)- Fifth successive year of organic growth against strong prior year |
| · | Gross profit strengthened 9% to £5.7m (2023: £5.2m) |
| · | Gross profit margin enhanced by 80 basis points to 27.6% (2023: 26.8%) |
| · | Adjusted EBITDA1 up 6% to £2.4m (2023: £2.3m) |
| · | Free cash flow of £2.3m (2023: £2.1m) |
| · | Cash of £1.8m (2023: £2.1m) |
Operational highlights
| · | Achieved sustained organic growth in both revenue and profits by retaining customers, successfully leveraging cross-selling and upselling opportunities and driving operational efficiencies, alongside a steady stream of new customer wins |
| · | Secured multiple contract awards with the majority being small and medium sized engagements |
| · | Enhanced its range of services with the late October 2024 acquisition of 24hr Aquaflow strengthening regional coverage of specialist FM support services alongside its nationwide specialist cleaning and window cleaning operations |
Current trading and outlook
| · | Transformative acquisition of 24hr Aquaflow which is being successfully incorporated into the Group, showing strong business performance and is expected to make a material contribution to Group profits from this year onwards |
| · | Despite the macroeconomic headwinds, commenced the current year with good momentum, delivering trading performance in line with management expectations |
| · | Well-positioned to capitalise on considerable opportunities including development of cross selling and upselling initiatives, driving of cost efficiencies and with a robust pipeline of early-stage opportunities, with emphasis on earnings enhancing, accretive and cash generative prospects |
