REACT Group plc (REAT) AI Stock Analysis

• Market Cap: £13.00M
• Dividend Yield: N/A
• Average Volume (3M): 25.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 6.90%
• EPS Growth: -242.86%
• Country: UK
• Employees: 372
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.01
• Shares Outstanding: 23,636,610
• 10 Day Avg. Volume: 30,891
• 30 Day Avg. Volume: 25,448
• PEG Ratio: -14.28
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 7.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 59.00p ▲(5.36% Upside)

The overall stock score for REACT Group plc is primarily influenced by its strong financial performance, which is offset by negative technical indicators and poor valuation metrics. The company's robust revenue growth and solid balance sheet are significant strengths. However, the negative P/E ratio and overbought technical indicators suggest caution. Improving profitability and addressing valuation concerns could enhance the stock's attractiveness.

REACT Group plc Business Overview & Revenue Model

Company Description

REACT Group PLC provides specialist cleaning, and decontamination and hygiene service to the public and private sectors in the United Kingdom. The company offers air duct cleaning, animal and human fatality management, hazardous and biohazard cleaning and waste removal, carpets and floor cleaning, clinical waste removal, contract cleaning, crime scene and forensic cleaning, custody suite cleaning, decontamination, deep cleaning, detention centre cleaning, end of tenancy cleans, fire and smoke damage, fire damper testing, flood and sewage cleanup, and fly-tipping clearance services. It also provides graffiti removal, depot and warehouse cleaning, high level cleaning, ATEX explosive environment cleaning, air hygiene and grease extractor cleaning, highways laybys and picnic areas, house and horder clearances, housing association contract cleaning, kitchen grease extract cleaning, NHS trust cleaning contracts, nightly hospital cleans, university and college campuses cleaning, housing associations, office and commercial property cleaning, pigeon guano clearance and anti-bird control, platform and trackside decontamination, transport hubs, police and emergency vehicle cleaning, sharps and drugs paraphernalia removal, prison and detention centre cleaning, sharps search and removal, air hygiene and compliance, urgent incident cleaning, infection control cleaning, school contract cleaning, train carriage cleaning, and janitorial services. REACT Group Plc is based in Swadlincote, the United Kingdom.

How the Company Makes Money

REACT Group plc generates revenue primarily through service contracts and project-based work within its cleaning and facilities management sectors. The company's revenue model is anchored in providing specialized cleaning services, which are often billed on a per-contract basis or hourly rates. Key revenue streams include emergency response services, regular maintenance contracts for facilities, and bespoke cleaning solutions tailored to client needs. Additionally, REACT Group benefits from strategic partnerships with healthcare providers and facilities management firms, which enhance its market reach and service offerings. The company's ability to secure long-term contracts and its reputation for reliability and compliance with health and safety standards contribute significantly to its earnings.

REACT Group plc Financial Statement Overview

Summary

REACT Group plc exhibits strong financial performance with significant revenue growth and improved operational margins. The balance sheet is solid with low leverage and strong equity support. Cash flows are robust, though subject to some volatility. Continued focus on improving net income and managing cash flow fluctuations will enhance financial stability.

Income Statement

REACT Group plc has demonstrated strong revenue growth, increasing from £3.1M in 2019 to £20.7M in 2024. Gross profit and net profit margins have improved significantly over time, with the latest figures at 27.6% and 0.1%, respectively. The company has turned around its EBIT from negative figures in 2022 to positive in 2024, indicating enhanced operational efficiency. However, net income remains low, which could be an area for improvement.

Balance Sheet

The balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.09, indicating low leverage and strong equity funding. The equity ratio stands at 62.2%, reflecting a robust asset base funded by equity. Return on equity has improved, although net income remains marginal. The company's financial stability is commendable, though increasing profitability would strengthen the balance sheet further.

Cash Flow

The cash flow statement reflects positive operating cash flow and strong free cash flow, with free cash flow growing significantly over the years. The operating cash flow to net income ratio is high, indicating effective cash generation from operations. However, fluctuations in free cash flow due to varying capital expenditures suggest some volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.27M	20.75M	19.58M	13.67M	7.70M	4.36M
Gross Profit	4.58M	5.72M	5.24M	3.26M	2.37M	1.45M
EBITDA	2.00M	2.07M	2.06M	410.00K	394.00K	261.00K
Net Income	-349.00K	18.00K	50.00K	-701.00K	389.00K	188.00K
Balance Sheet
Total Assets	22.99M	13.92M	16.41M	15.68M	6.23M	3.16M
Cash, Cash Equivalents and Short-Term Investments	2.83M	1.78M	2.12M	1.52M	633.00K	1.78M
Total Debt	4.74M	784.00K	904.00K	1.08M	170.00K	43.00K
Total Liabilities	13.02M	5.26M	7.91M	7.34M	3.44M	967.00K
Stockholders Equity	9.97M	8.66M	8.49M	8.34M	2.79M	2.19M
Cash Flow
Free Cash Flow	1.71M	2.38M	2.33M	-888.00K	361.00K	237.00K
Operating Cash Flow	2.27M	2.79M	2.44M	-773.00K	432.00K	281.00K
Investing Cash Flow	-4.93M	-2.42M	-1.42M	-8.41M	-2.19M	-42.00K
Financing Cash Flow	4.11M	-233.00K	-360.00K	7.00M	228.00K	1.10M

REACT Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:REAT, the sentiment is Positive. The current price of 56 is above the 20-day moving average (MA) of 53.10, above the 50-day MA of 50.35, and below the 200-day MA of 58.69, indicating a neutral trend. The MACD of 2.23 indicates Negative momentum. The RSI at 62.90 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:REAT.

REACT Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEPS	67 Neutral	£7.04M	16.58	15.40%	―	6.46%	-32.89%
DSW	66 Neutral	£11.56M	10.60	11.18%	6.52%	110.08%	1105.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VNET	63 Neutral	£18.55M	22.35	3.15%	2.15%	-1.00%	7.35%
REAT	56 Neutral	£13.00M	-36.67	-3.75%	―	6.90%	-242.86%
MIND	42 Neutral	£14.55M	-1.77	-106.45%	―	-14.04%	24.84%
CPP	38 Underperform	£8.48M	-1.90	-373.61%	―	-63.82%	-4.47%

REACT Group plc Corporate Events

REACT Group Plc Reports Strong Financial Performance and Strategic Growth

REACT Group Plc reported a strong financial performance for the year ending September 2025, with revenues increasing by 21% to approximately £25 million and gross profit rising by 40% to £8 million. The company’s strategic focus on high-margin, time-sensitive services and recurring maintenance contracts has bolstered its financial resilience, despite an increase in net debt due to the acquisition of 24hr Aquaflow Services. The integration of this acquisition is progressing well, contributing to new customer channels and growth. The board remains confident in the company’s strategy and its ability to deliver sustainable value, even in a challenging economic environment.

The most recent analyst rating on (GB:REAT) stock is a Hold with a £50.00 price target. To see the full list of analyst forecasts on REACT Group plc stock, see the GB:REAT Stock Forecast page.

REACT Group Directors Acquire Shares Under Incentive Plan

REACT Group plc has announced the acquisition of 966 Partnership Shares by its directors under the Share Incentive Plan (SIP), with each share priced at 46.575 pence. As part of the plan, directors were also awarded additional Matching Shares at no cost, reinforcing the company’s commitment to aligning employee and shareholder interests.

The most recent analyst rating on (GB:REAT) stock is a Hold with a £50.00 price target. To see the full list of analyst forecasts on REACT Group plc stock, see the GB:REAT Stock Forecast page.

REACT Group Enhances Employee Investment with Share Incentive Plan

REACT Group plc announced the acquisition of 885 Partnership Shares by MUFG on behalf of its directors and PDMRs as part of the company’s Share Incentive Plan. This plan allows employees to purchase shares through salary deductions, with additional Matching Shares awarded at no cost, enhancing employee investment and engagement in the company.

The most recent analyst rating on (GB:REAT) stock is a Hold with a £55.00 price target. To see the full list of analyst forecasts on REACT Group plc stock, see the GB:REAT Stock Forecast page.

REACT Group Enhances Employee Investment with Share Incentive Plan

REACT Group plc announced the purchase of 882 Partnership Shares under its Share Incentive Plan, with Directors and PDMRs receiving additional Matching Shares at no cost. This initiative, managed by MUFG Corporate Markets, is designed to incentivize employees and align their interests with the company’s performance, potentially enhancing stakeholder value.