REACT Group PLC (GB:REAT)
LSE:REAT
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REACT Group plc
(LSE:REAT)
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Rating:46Neutral
Price Target:
43.00 p
▼(-15.69% Downside)
Action:ReiteratedDate:02/06/26
The score is primarily constrained by deteriorating financial performance in FY2025 (margin compression, net loss, weaker cash generation, and higher leverage). Technicals also lean negative with the share price below major moving averages and a negative MACD. Valuation provides limited support due to the loss-making P/E and no stated dividend yield.
Positive Factors
Accelerating revenue growth
Sustained top-line acceleration indicates underlying demand for specialist cleaning and decontamination services. Over a 2–6 month horizon, stronger revenue momentum supports scale economics, contract leverage and cross-sell opportunities, improving prospects for restoring margins if costs are managed.
Negative Factors
Gross margin compression
A roughly 600bps margin decline signals structural cost or pricing pressure—higher labour, materials, or contract mix shifts—that can persist beyond a quarter. Sustained margin erosion reduces operating leverage, constrains reinvestment, and makes the business more sensitive to demand swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue growth
Sustained top-line acceleration indicates underlying demand for specialist cleaning and decontamination services. Over a 2–6 month horizon, stronger revenue momentum supports scale economics, contract leverage and cross-sell opportunities, improving prospects for restoring margins if costs are managed.
Read all positive factors
REACT Group plc (REAT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£10.40M
Dividend YieldN/A
Average Volume (3M)25.45K
Price to Earnings (P/E)―
Beta (1Y)0.07
Revenue Growth6.90%
EPS Growth-242.86%
CountryUK
Employees372
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding23,636,610
10 Day Avg. Volume30,891
30 Day Avg. Volume25,448
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.15
Price to Sales (P/S)0.46
P/FCF Ratio-73.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.08
Revenue Forecast (FY)£26.00M
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 clea...
How the Company Makes Money
REACT Group plc primarily makes money by providing outsourced specialist cleaning and decontamination services under customer contracts and call-out work. Revenue is generated from (1) recurring contracted services, where customers (e.g., faciliti...
REACT Group plc Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.93M | 20.75M | 19.58M | 13.67M | 7.70M |
| Gross Profit | 5.54M | 5.72M | 5.24M | 3.26M | 2.37M |
| EBITDA | 2.66M | 2.07M | 2.06M | 410.00K | 394.00K |
| Net Income | -340.00K | 18.00K | 50.00K | -701.00K | 389.00K |
Balance Sheet | |||||
| Total Assets | 20.66M | 13.92M | 16.41M | 15.68M | 6.23M |
| Cash, Cash Equivalents and Short-Term Investments | 1.24M | 1.78M | 2.12M | 1.52M | 633.00K |
| Total Debt | 4.51M | 784.00K | 904.00K | 1.08M | 170.00K |
| Total Liabilities | 10.69M | 5.26M | 7.91M | 7.34M | 3.44M |
| Stockholders Equity | 9.96M | 8.66M | 8.49M | 8.34M | 2.79M |
Cash Flow | |||||
| Free Cash Flow | -157.00K | 2.38M | 2.33M | -888.00K | 361.00K |
| Operating Cash Flow | 348.00K | 2.79M | 2.44M | -773.00K | 432.00K |
| Investing Cash Flow | -4.37M | -2.42M | -1.42M | -8.41M | -2.19M |
| Financing Cash Flow | 3.48M | -233.00K | -360.00K | 7.00M | 228.00K |
REACT Group plc Technical Analysis
Negative
51.00
Price Trends
48.77
Negative
50.33
Negative
50.75
Negative
Market Momentum
-1.62
Negative
37.27
Neutral
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:REAT, the sentiment is Negative. The current price of 51 is above the 20-day moving average (MA) of 45.23, above the 50-day MA of 48.77, and above the 200-day MA of 50.75, indicating a bearish trend. The MACD of -1.62 indicates Negative momentum. The RSI at 37.27 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:REAT.
REACT Group plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | £9.03M | 3.46 | 15.40% | ― | 6.46% | -32.89% | |
66 Neutral | £17.91M | 22.01 | 3.96% | 2.14% | -5.27% | 8.93% | |
65 Neutral | £11.31M | 25.58 | 11.90% | 5.12% | 186.12% | 294.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
46 Neutral | £10.40M | -33.83 | -3.75% | ― | 6.90% | -242.86% | |
44 Neutral | £12.54M | -1.51 | -168.28% | ― | -27.82% | -3083.87% | |
39 Underperform | £5.05M | -1.52 | -2189.00% | ― | -63.82% | -4.47% |
* Industrials Sector Average
GB:REAT
REACT Group plc
44.00
-18.00
-29.03%
GB:CEPS
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43.00
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-20.00
-26.67%
GB:VNET
Vianet Group plc
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13.42%
GB:MIND
Mind Gym
12.50
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GB:DSW
DSW Capital Plc
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-4.94%
REACT Group plc Corporate Events
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
REACT Group upbeat on trading as digital platform and Aquaflow drive growth
Positive
Mar 31, 2026
REACT Group plc, a leading UK support services provider to the facilities management industry, spans commercial window cleaning, contract cleaning and soft FM, specialist and emergency cleaning, and commercial drainage and plumbing. Its operations...
Business Operations and StrategyShareholder Meetings
REACT Group Sets Hybrid AGM as It Highlights Diversified FM Support Services
Positive
Mar 27, 2026
REACT Group plc, a UK-based support services provider to the facilities management industry, runs four main divisions spanning commercial window cleaning, contract cleaning and soft FM, emergency and specialist cleaning, and commercial drainage an...
Business Operations and StrategyExecutive/Board Changes
REACT Group Directors Increase Holdings via Share Incentive Plan
Positive
Mar 13, 2026
REACT Group plc has reported that its three most senior executives acquired shares under the company’s HMRC-approved Share Incentive Plan, reinforcing management’s financial alignment with shareholders. Chair Mark Braund, CEO Shaun Doa...
Business Operations and StrategyExecutive/Board Changes
REACT Group Executives Receive Share Awards Under Incentive Plan
Positive
Feb 13, 2026
REACT Group plc has reported new share purchases and awards under its HMRC-sanctioned Share Incentive Plan for key executives. On 12 February 2026, the company’s chair, chief executive and chief financial officer each acquired 284 Partnershi...
Regulatory Filings and Compliance
REACT Group CFO Increases Personal Stake with Share Purchase
Positive
Feb 13, 2026
REACT Group plc disclosed that Chief Financial Officer Spencer Dredge purchased 8,000 ordinary shares in the company at 52.98 pence per share on 13 February 2026. Following this transaction, Dredge’s total direct holding, excluding any share...
Regulatory Filings and Compliance
REACT Group chair increases stake with on-market share purchase
Positive
Feb 10, 2026
REACT Group plc has disclosed that its chair, Mark Braund, has purchased 5,470 ordinary shares in the company at a price of 50.60 pence per share on 10 February 2026. The transaction, conducted on AIM, increases his holding to 454,807 shares, repr...
Business Operations and StrategyFinancial Disclosures
REACT Group Delivers Sixth Year of Growth as Margins and Recurring Revenue Climb
Positive
Feb 5, 2026
REACT Group plc reported a sixth consecutive year of growth for the year to 30 September 2025, with revenue up 20% to £24.9m and adjusted EBITDA rising 27% to £3.1m, supported by a sharp improvement in gross margin to 32.1% and a rise in...
Business Operations and StrategyFinancial Disclosures
REACT Group Schedules Final Results Release and Investor Presentation
Neutral
Feb 2, 2026
REACT Group plc has announced it will publish its final results for the year ended 30 September 2025 on 5 February 2026 and will accompany the release with a live online investor presentation on 10 February 2026. The event, hosted by CEO Shaun Doa...
Executive/Board ChangesRegulatory Filings and Compliance
REACT Group Directors Receive Share Awards Under Incentive Plan
Neutral
Jan 13, 2026
REACT Group plc has disclosed director dealings under its Share Incentive Plan, confirming that on 12 January 2026 an aggregate 894 Partnership Shares were purchased at 50.38 pence each on behalf of its Chair, Chief Executive Officer and Chief Fin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.