REACT Group plc (REACT), the leading specialist cleaning and decontamination group, has announced an update for the year to end September 2021 which included a full six months of Fidelis. With organic revenue growth running at c.20%, including the REACT business and Fidelis, the Board stated that the Group achieved c.77% growth in revenues to c.£7.7m and adjusted EBITDA of between £725,000 and £775,000. This EBITDA figure is, however, below our earlier forecast as a result of a period of tempora
Companies: REACT Group Plc
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M7 Regional E-Warehouse REIT intends to apply for admission onto The Property Stock Exchange (Wholesale Segment). On admission, the company plans to acquire a portfolio of UK retail warehouses worth £120m from M7 Real Estate Investment Partners VIII. The portfolio currently comprises 18 retail warehouse properties across the UK totalling 978,317 sq ft and fully le
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REACT Group plc (REACT), the leading specialist cleaning and decontamination company, has announced its results for the half year to March 2021. They do not include any contribution from the acquisition of Fidelis (completed on 26 March 2021) but do include the assets and liabilities for Fidelis at 31 March 2021. Strong progress has been achieved across the business with good growth in revenues, a 733bps rise in gross margin and a significant increase in underlying EBITDA. The Group remains well
REACT Group plc (REACT), the leading specialist cleaning, decontamination and hygiene company, has announced two new significant contract awards in less than a week confirming the Group’s growing presence in nationwide decontamination and cleaning. The most significant, announced today and from an existing customer, could when fully mobilised generate revenues of up to c.£2m. The second, announced on 20 April, also from an existing customer, is worth just over c.£0.6m. We are currently keeping e
REACT Group plc (REACT), the leading specialist cleaning, decontamination and hygiene company, has provided the market with an update on trading for the six-months to end March 2021. This shows very encouraging progress in revenue, gross profit, gross profit margin and adjusted EBITDA against the comparative period, all of which was generated organically. The acquisition of Fidelis was concluded at the period end and will therefore be consolidated in REACT’s second half period. As noted in our e
REACT Group plc (REACT), the leading specialist cleaning, decontamination and hygiene company, has announced the acquisition of Fidelis Contract Services (Fidelis), a successful commercial cleaning, hygiene and facility support service business. It has been acquired for an initial consideration of £1.7m financed through the Group’s own resources with a deferred element of up to £3.05m. Maximum consideration is capped at £4.75m and is based on 4.75x EBITDA. This maiden acquisition is an important
REACT Group plc (REACT), the specialists in deep cleaning services for customers in the public and private sectors, has announced encouraging full year results, marginally ahead of our increased forecasts and a significant turnaround from the losses reported in previous years. Cash balances at the year-end were also substantially higher than forecast at £1.8m. The new management team has delivered on its promises in what has been a challenging year and we continue to remain very positive on the
REACT Group plc (REACT), the specialists in deep cleaning services for customers in the public and private sectors, has announced an encouragingly positive trading update for the financial year to September 2020 stating that the Group’s maiden profit before tax will be ahead of market expectations. Consequently we are raising our PBT forecast from £152k to £182k. Cash balances at the year-end were also higher than forecast at £1.8m and we continue to remain very positive on the prospects for the
REACT Group plc (REACT), the specialists in deep cleaning services for customers in the public and private sectors, has announced a new contract win with an existing facilities management (FM) client. This contract is in addition to the work that REACT already carries out for this client and is unrelated to COVID-19. Given the underlying activities of the business, an increasing recurring revenue stream, contract awards announced in the year to date and the maiden profit generated in H1, we feel
REACT Group plc (REACT) is exploiting a gap in the market for specialist deep cleaning services for customers in the public and private sectors, with revenues split 50/50 between reactive work and regular maintenance. The Covid-19 pandemic has led to a significant upturn in activity in certain sectors (such as healthcare and transport) but temporarily weaker demand from others (such as hospitality). While its Covid-related work is by no means its biggest revenue generator, the legacy of the pand
REACT Group (REACT) specialises in extreme cleaning and decontamination services in a range of market sectors including hospitals, transport, police, prisons, education and leisure. Its specialist deep cleaning services are often undertaken in difficult locations and/or in sensitive circumstances and are of a complexity non-specialist companies find difficult to replicate. Customers include public sector organisations and private companies with revenues typically split evenly between reactive cl
FRP Advisory Group, UK professional services firm specialising in restructuring advisory. Raising £80m (£20m primary). Expected market cap £190m. Compound annual growth of 16.4 per cent. in revenue and 10.9 per cent. in operating profit since the beginning of FY17.o Strong average EBITDA margins of 51 per cent. over FY17 to FY19, and consistently strong cash conversion
Inspecs, a UK designer, manufacturer and distributor of eyewear frames to global retail chains announces its intention to IPO
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Sensyne Investments - healthcare technology company that creates value from accelerating the discovery and development of new medicines and improving patient care. Raising £60m. Mkt Cap £225m. Due 17 Aug.
Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug.
Vitesse Media (VIS) — To be renamed Bonhill Group. RTO of the trade and assets of InvestmentNews, a B
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VR Education Holdings—a virtual reality software and technology company. Raising £6m, mkt cap c €22m. Due 12 March SimplyBiz, a Financial Services Firm, reported to be considering an IPO targeting a market capitalisation of between £140m and £155m in a listing that would raise £30m of new money | Bacanora Lithium—Readmission. No new money. Mkt cap £140m. Due 21 March. the new holding company for Bacanora Minerals Ltd | Stirling Industries—Acquisition vehicle focusing on industrials. Offer TBA. D
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Fusion Antibodies— Sch1 from the Belfast based contract research organisation providing services to biopharmaceutical and diagnostics companies that are involved in the development of antibodies for both therapeutic drug and diagnostic applications. Offer to raise £5.5m for the Company and £1.075m for selling shareholders at 82p with market cap of £18.1m. Due 18 Dec | Erris Resources PLC—a mineral exploration and development company currently focused on two geographic areas. Offer TBC, expected
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After a stellar period of trading through the various stages of Covid 19 restrictions, and easings, ScS
has reported a step-back in trading momentum in recent weeks. We await to see if the slower
trading is temporary, reflective of a change in Christmas shopping patterns, or of a more permanent
basis. We leave forecasts unchanged, looking for CPTP of £13.7m and EPS of 26.5p (both IFRS 16
compliant), as such the stock trades on an undemanding EV/EBITDA multiple of 4x for FY22 and 3.4x
Companies: ScS Group plc
Marks & Spencer ("M&S") has developed a ‘building the brands’ component to its overall strategy to transform and so improve its Clothing & Home ("C&H") performance. To date the most notable development in this complementary work to its core brand improvement has been the acquisition of Jaeger, which is now going through the gears of positive change. Alongside wholesale and exclusive collaborations, M&S has now announced that it is acquiring a 25% stake in ‘Nobody's Child’, a fast-growing respons
Companies: Marks and Spencer Group plc
STU’s integrated online retail/credit model performed well in H1, even with well-documented headwinds in late Q2. EBITDA margin in the traditionally quieter half was >14%. As outlined in the June CMD, Studio has a clear growth strategy capable of driving EPS to c100p in 3-5 years. However, new customer recruitment has softened short term. On top of cost headwinds, PBT guidance has reduced by c£6m and we have downgraded estimates across all years.
Companies: Studio Retail Group plc
Motorpoint’s interim results for the 6 months to 30th September are record breaking and reflect very well
on the Group’s ability to traverse what remain unusual and volatile market conditions. Whilst said
conditions have undoubtedly supported sales in the nearly new market, availability has been a challenge
which has brought to the fore Motorpoint’s flexible, agile and brand agnostic model, in our view. With H1
22 sales and margin strongly ahead, we are upgrading our FY22 CPTP forecast by c22
Companies: Motorpoint Group Plc
Nightcap has added another five cocktail bars to its portfolio through the acquisition of Barrio Familia Ltd (“Barrio”). The £4.94m acquisition price is being funded by £3.63m of existing cash resources and the issue of £1.31m of shares to the vendors at 23p. Barrio made £600k of EBITDA in the first quarter of the year to June 2022, conservatively assuming £1m EBITDA for the full year equates to a 4.9x EBITDA acquisition multiple (or 3.0x our Barrio June 2023 forecast). Funded principally throug
Companies: Nightcap PLC
Compass reported in line FY21 results and a weaker-than-consensus FY22 margin guidance due to short-term headwinds. The expected alleviation of these negatives in H2 22 and the cost reduction programmes should support a nearly-full recovery of margin in FY23. As a result, the FY22 consensus should come in lower but the FY23 consensus should be more optimistic.
Companies: Compass Group PLC
Bivictrix 26.5p £17.5m (BVX.L)
BiVictriX Therapeutics, an emerging biotechnology company applying a novel approach to develop next generation cancer therapies using insights derived from frontline clinical experience announced a collaboration to manufacture BiVictriX's antibody-drug conjugates with Abzena Limited, a partner research organisation for integrated discovery to cGMP manufacturing solutions for biologics. The collaboration will allow BiVictriX to cost-effectively manuf
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Last week Inchcape held a Capital Markets Day where it communicated the key elements of its Accelerate strategy. Through its two primary growth drivers – distribution excellence (Distribution) and vehicle lifecycle services (VLS) – the company is looking to win distribution market share and capture more of a vehicle’s lifetime value. With these growth pillars, Inchcape aims to deliver mid-to-high single digit profit growth in Distribution and an additional £50m of incremental PBT from VLS withi
Companies: Inchcape plc
Companies: Everyman Media Group PLC
M&B’s has announced a strong closure to FY20/21. The adjusted EPS came in much ahead of both our and market consensus. The publican has also made a good start to FY21/22, with 2.7% lfl growth (vs same period in FY19). In the coming few quarters, we expect M&B to perform ahead of close competitors, in turn gaining market share. Positive stock recommendation is maintained on the UK-based publican.
Companies: Mitchells & Butlers plc
One Media iP (OMiP) has released a solid set of H1/21A interim results, with revenue up 8.5% YoY in USD terms. The company has been active on the acquisition front, having deployed £4m of capital so far in FY21E (mostly post period end), and the pipeline remains strong. OMiP has a highly scalable platform, which should result in steadily improving margins as the group adds new royalty streams to its portfolio, and remains well-placed to benefit from the structural growth underway in the music in
Companies: One Media iP Group PLC
Photo-Me has detailed that the Group’s trading performance was better than expected in May, June and July. This was driven by a stronger than anticipated recovery in photobooth activity, mainly in continental Europe. Guidance for FY 2021 has been raised to sales of c.£210m (previously c.£200m) and adj. PBT of £25-30m (previously £21-24m). We have consequently upgraded our FY 2021E EPS by 22% but leave our FY 2022E forecasts onwards unchanged for now. In effect, we assume the recovery is taking p
Companies: Photo-Me International plc
Draftkings has made a £16.4bn ($22.4bn) bid to acquire Entain in a cash (630p) and stock offer, valuing the target at 2800p/share. While the bid is promising, MGM (BetMGM’s JV partner) can throw a spanner in the works (counter-bid or a veto).
Companies: Entain PLC
Companies: Air Partner plc
Entain registered Q3 21 top-line growth of 6%, driven largely by online (10%). In the all-important US market, BetMGM surged ahead with a further expansion in market share of (23% in three months to August vs 22% in Q2 21).
FY21 EBITDA guidance of £850-900m was re-iterated, a positive given the recently announced headwinds from Dutch regulations.
We do not expect any significant change to our estimates, given that the performance was largely in line with our estimates.