Business
INTERIM RESULTS FOR 6 MONTHS ENDED 31 MARCH 2018
INTERIM RESULTS FOR 6 MONTHS ENDED 31 MARCH 2018.
About this update from React Group Plc
[{"type":"text","content":"\n \nRNS Number : 2063S React Group PLC 22 June 2018 \n\n \nREACT Group PLC\n \nINTERIM RESULTS FOR THE 6 MONTHS ENDED 31 MARCH 2018\n \n \nREACT Group PLC (\"REACT\" or \"the Company\") announces its interim results for the six months ended 31 March 2018. \n \nDuring the six months ended 31 March 2018 market conditions have been difficult and the Company has also gone through a period of significant change. Following the acquisition of the specialist cleaning business from Autoclenz Limited (\"Autoclenz\") in 2015, Autoclenz continued to provide financial and administrative support to the Company under a service agreement entered into at that time. This service agreement was terminated at the start of the current financial year and in November 2017 the Company moved into leased premises in Swadlincote. As a consequence the Company is investing in financial and other systems to improve the quality of its management information and to ensure its administration systems are scalable and will remain \"fit for purpose\" as the business grows. There have also been significant changes in the management of the business with the appointment of an Interim Head of Operations, with extensive general management experience, in April 2018. The finance team has also been strengthened with the appointment of a full time Group Financial Controller in April 2018, and although it is still early days, we are already seeing the benefits of this investment with improved debt collection and a number of operational efficiencies having been identified, since the half year end.\n \nOn the existing business the new management team is conducting a review of operations to identify cost savings and opportunities for growth in order to stem the losses and return the Company to profitability. As part of this review it became apparent that the asbestos side of the business was not making a contribution and, as a consequence, given the onerous compliance obligations for licence holders, and the risks associated with this type of business, the Board has taken the decision to contract out any future requirement for asbestos removal to specialist companies rather than dealing internally.\n \nGoing forward our sales effort will continue to target larger contracts which will generate a more predict...