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REACT Group plc
(LSE:REAT)
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Rating:46Neutral
Price Target:
42.00 p
▲(5.00% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily held back by weakened FY2025 fundamentals—margin compression, a return to net loss, sharply lower operating/free cash flow, and higher leverage. Technical indicators also reflect weak momentum (below key moving averages with negative MACD and low RSI). Valuation offers limited support given the negative P/E and no dividend yield data.
Positive Factors
Revenue Growth
The return to stronger top-line growth indicates continued customer demand and business scaling. Sustained revenue expansion can improve operating leverage over time, provided REACT converts that growth into healthier margins and cash flow.
Negative Factors
Margin Compression
The margin decline shows that recent revenue growth is not translating efficiently into profit. If cost pressure, pricing constraints, or execution issues persist, reduced profitability could limit reinvestment and weaken the durability of future earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The return to stronger top-line growth indicates continued customer demand and business scaling. Sustained revenue expansion can improve operating leverage over time, provided REACT converts that growth into healthier margins and cash flow.
Read all positive factors
REACT Group plc (REAT) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£9.69M
Dividend YieldN/A
Average Volume (3M)20.16K
Price to Earnings (P/E)―
Beta (1Y)0.01
Revenue Growth16.94%
EPS Growth62.67%
CountryUK
Employees428
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding23,636,610
10 Day Avg. Volume18,953
30 Day Avg. Volume20,165
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)0.06
Revenue Forecast (FY)£25.80M
REACT Group plc Business Overview & Revenue Model
Company Description
Based in Swadlincote, United Kingdom, REACT Group PLC delivers a comprehensive range of specialist cleaning, decontamination, and hygiene services to both public and private sector clients throughout the UK. The company offers an extensive portfol...
How the Company Makes Money
REACT Group plc primarily makes money by delivering contracted specialist cleaning and decontamination services to organisations that outsource these needs. Revenue is generated through (1) reactive, call-out assignments (e.g., emergency deep clea...
REACT Group plc Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.04M | 24.93M | 20.75M | 19.58M | 13.67M | 7.70M |
| Gross Profit | 5.95M | 5.54M | 5.72M | 5.24M | 3.26M | 2.37M |
| EBITDA | 2.95M | 2.66M | 2.07M | 2.06M | 410.00K | 394.00K |
| Net Income | -132.00K | -340.00K | 18.00K | 50.00K | -701.00K | 389.00K |
Balance Sheet | ||||||
| Total Assets | 19.56M | 20.66M | 13.92M | 16.41M | 15.68M | 6.23M |
| Cash, Cash Equivalents and Short-Term Investments | 1.09M | 1.24M | 1.78M | 2.12M | 1.52M | 633.00K |
| Total Debt | 3.64M | 4.51M | 784.00K | 904.00K | 1.08M | 170.00K |
| Total Liabilities | 9.60M | 10.69M | 5.26M | 7.91M | 7.34M | 3.44M |
| Stockholders Equity | 9.96M | 9.96M | 8.66M | 8.49M | 8.34M | 2.79M |
Cash Flow | ||||||
| Free Cash Flow | 543.00K | -157.00K | 2.38M | 2.33M | -888.00K | 361.00K |
| Operating Cash Flow | 891.00K | 348.00K | 2.79M | 2.44M | -773.00K | 432.00K |
| Investing Cash Flow | -1.31M | -4.37M | -2.42M | -1.42M | -8.41M | -2.19M |
| Financing Cash Flow | -1.32M | 3.48M | -233.00K | -360.00K | 7.00M | 228.00K |
REACT Group plc Technical Analysis
Negative
40.00
Price Trends
41.83
Negative
43.51
Negative
46.41
Negative
Market Momentum
-0.31
Negative
39.32
Neutral
50.00
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 40 is below the 20-day moving average (MA) of 41.37, below the 50-day MA of 41.83, and below the 200-day MA of 46.41, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | £10.56M | 17.71 | 5.54% | 8.10% | 27.13% | -48.85% | |
64 Neutral | £18.76M | 45.83 | 1.53% | 3.64% | 1.39% | -51.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
46 Neutral | £9.69M | -71.93 | -1.33% | ― | 16.94% | 62.67% | |
41 Neutral | £7.15M | -1.36 | 1698.71% | 1.45% | -22.55% | 35.74% | |
37 Underperform | £8.51M | -11.68 | -29.93% | ― | ― | ― |
* Industrials Sector Average
GB:REAT
REACT Group plc
41.00
-10.00
-19.61%
GB:CEPS
CEPS plc
41.00
11.00
36.67%
GB:VNET
Vianet Group plc
66.00
-9.19
-12.23%
GB:MIND
Mind Gym
7.13
-8.38
-54.03%
GB:DSW
DSW Capital Plc
39.50
-13.14
-24.96%
REACT Group plc Corporate Events
Business Operations and StrategyExecutive/Board Changes
REACT Group bolsters executive alignment with fresh share awards under incentive plan
Positive
Aug 17, 2026
REACT Group plc has reported new share purchases and awards under its HMRC-sanctioned Share Incentive Plan, through which eligible employees acquire partnership shares via salary deductions and receive additional matching shares at no cost. The co...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
REACT Group Executives Boost Holdings via Share Incentive Plan
Positive
Jul 15, 2026
REACT Group plc has disclosed that three senior executives participated in its HMRC-approved Share Incentive Plan, acquiring a total of 1,047 partnership shares at 43 pence each, alongside the award of matching shares at no cost. Chair Mark Braund...
Business Operations and StrategyExecutive/Board Changes
REACT Directors Increase Stakes Through Share Incentive Plan Awards
Positive
Jun 17, 2026
REACT Group plc has reported that three senior executives, Chair Mark Braund, Chief Executive Officer Shaun Doak and Chief Financial Officer Spencer Dredge, have acquired shares under the company’s HMRC-approved Share Incentive Plan. Using m...
Business Operations and StrategyFinancial Disclosures
REACT Group sets online investor briefing on half-year results
Positive
May 19, 2026
REACT Group plc has scheduled a live online investor presentation to discuss its recently released half-year interim results, to be hosted by its chief executive, chief financial officer and chair via the Investor Meet Company platform on 22 May. ...
Business Operations and StrategyFinancial Disclosures
REACT Group lifts revenue and margins as digital push and Aquaflow drive resilient first half
Positive
May 19, 2026
REACT Group reported a resilient first half, with revenue up 9% to £13.2m and gross profit rising 10%, driven by strong recurring revenue, disciplined pricing and a standout contribution from its 24hr Aquaflow Services division. Adjusted EBIT...
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.