React Group FY numbers to fall short of consensus expectations
By Iain Gilbert
Date: Tuesday 27 May 2025
(Sharecast News) - Cleaning and facicilities manegement business React Group warned on Tuesday that FY numbers were now expected to fall short of consensus expectations, despite having delivered double-digit growth in both revenue and profits during H1.
React stated that interim revenues had risen by 14% to £12.1m and adjusted underlying earnings improved 12% to £1.4m, boosted by its recent acquisition of 24hr Aquaflow Services, which brought in £2.8m in revenues. Gross profits increased by 35% to £3.9m and gross profit margins strengthened by 490 basis points to 32.0%.
The AIM-listed company cited economic pressures, rising customer costs and longer sales cycles as the reasons for its downgraded guidance but also believes itself to be "positioned to capitalise on an improvement in the economy".
"In light of prevailing sector specific and global economic pressures extending business decision cycles, particularly for higher value contracts, the board is adopting a cautious approach to conversion of new business in the second half of FY 2025 and results are now expected to be below market expectations," said React.
As of 1040 BST, React shares had slumped 23.59% to 55.02p.
Reporting by Iain Gilbert at Sharecast.com
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