Shares in React Group PLC (LSE:REAT) rose 14% to 51.7p after the specialist cleaning and maintenance company reported another year of strong growth and said results would come in ahead of market expectations.
For the year to 30 September 2025, REACT expects revenue of about £25 million, up 21% from £20.7 million last year.
Gross profit is forecast to jump 40% to £8 million, while adjusted EBITDA should reach at least £3 million, beating the £2.75 million consensus estimate.
The performance was driven by solid demand across the company’s core service lines and the first full-year contribution from 24hr Aquaflow Services, a commercial plumbing and drainage business acquired in October 2024.
The new division helped diversify income and open new customer channels.
The group ended the financial year with net debt of £5.3 million, reflecting working capital needs and £2.9 million drawn from a £3.5 million loan to fund the Aquaflow purchase.
Despite the higher debt, REACT said the integration of Aquaflow was progressing well and trading remained strong.
Chief executive Shaun Doak said the company’s blend of high-margin emergency work and recurring maintenance contracts had delivered a resilient performance in a “challenging economic environment.”
He added that more than 85% of revenue now comes from recurring contracts, underpinning cash flow stability.