React Group PLC on Tuesday said it remains focused on strengthening pipeline momentum as it reported an increased interim loss amid sharply higher administrative expenses.
The Birmingham, England-based provider of cleaning and soft facilities management services said it swung to a loss of £280,000 in the six months to March 31 from a profit of £87,000 a year ago.
React shares were down 21% to 56.60 pence each on Tuesday morning in London.
Revenue grew by 14% to £12.1 million from £10.6 million, but cost of sales increased 6.8% to £8.2 million from £7.7 million, while administrative costs were up 55% to £4.0 million from £2.6 million.
React said it remains focused on mid-market opportunities, noting that deals that experienced delays in the first half of 2025 are now progressing which supported ‘re-emerging’ revenue growth.
Chief Executive Officer Shaun Doak said: ‘While economic pressures have materially affected some areas, the successful integration of 24hr Aquaflow Services has been a key growth driver, helping to offset some of the challenges in specialist cleaning. Looking ahead, we remain focused on strengthening pipeline momentum and capitalising on mid-market opportunities, where shorter decision cycles are supporting new business wins.’
React bought 24hr Aquaflow Services Ltd for up to £7.4 million late last year. It is a drainage and plumbing services firm operating in London and the south east of England for the past 20 years.
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