REACT Group plc (LSE:REAT) reported a sixth straight year of expansion for the financial year ended 30 September 2025, with revenue increasing 20% to £24.9 million and adjusted EBITDA climbing 27% to £3.1 million. Performance was supported by a significant improvement in gross margin, which rose to 32.1%, alongside growth in recurring revenue, now accounting for 93% of total income.
The company highlighted a strong recovery in the second half of the year following a slower start, driven by new national account agreements with customers including The Works, BP Forecourts and H&M. Additional multi-year contract wins across industrial and infrastructure sectors also contributed to growth. The integration of recently acquired 24hr Aquaflow further expanded REACT’s technical service capabilities and strengthened its higher-margin specialist offering.
Operational improvements were supported by the full implementation of the company’s digital “Project Sparkle” platform, which has enhanced operational efficiency and scalability across service lines. Strengthened leadership within the window-cleaning division also supported performance. Strong cash conversion enabled the group to continue investing in growth initiatives despite ongoing cost pressures across the facilities management sector.
Early trading in the new financial year has been encouraging, according to management, as broader macroeconomic conditions begin to stabilise. The company aims to continue expanding customer relationships, increase cross-selling and upselling opportunities across its divisions, and carefully manage rising wage and tax costs to maintain profitability, supporting further disciplined growth.
REACT Group’s outlook is supported by strong revenue expansion and a solid balance sheet position. However, valuation metrics remain under pressure, with a negative price-to-earnings ratio, while technical indicators suggest overbought conditions that could signal short-term volatility. Continued progress in profitability and margin sustainability is likely to be important for strengthening investor confidence.
More about REACT Group plc
REACT Group plc is a UK-based specialist support services provider operating within the facilities management sector. The group delivers services through four divisions: LaddersFree, a major commercial window-cleaning provider; Fidelis Contract Services, which offers contract cleaning and soft facilities management; the REACT division, specialising in emergency and specialist cleaning services; and 24hr Aquaflow Services, which provides commercial drainage, plumbing and pump solutions across southeast England. The company focuses on securing high-value, recurring service contracts across retail, industrial, infrastructure and national account customers, supported by a growing digital operations platform.
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