**Summary**
REACT Group PLC, a leading specialist support services provider to the FM industry, reported its unaudited interim results for the six-month period ended 31 March 2026. Key financial highlights include
**Revenue Growth** Revenue increased by 9% to £13.2 million, driven by strong performance in 24hr Aquaflow Services and a disciplined, value-led sales approach.
**Recurring Revenue** Recurring/repeat revenue remained <mark style="background-color:yellow">above</mark> 85%, providing strong visibility and reflecting long-standing customer relationships.
**Gross Profit and Margin** Gross profit rose by 10% to £4.3 million, with a gross margin improvement to 32.4%, attributed to operational efficiency and a focus on higher-value work.
**Adjusted EBITDA** Adjusted EBITDA increased by 7% to £1.5 million, reflecting revenue growth and cost control.
**Cash Flow** Free cash flow improved to £824,000, supported by tighter working capital management and improved collections.
**Net Debt** Net debt increased to £2.5 million due to planned investments and acquisition-related outflows but remains within comfortable levels.
Operationallythe Group highlighted
**24hr Aquaflow Services** Strong contribution from this division, continuing momentum post-acquisition.
**Project Sparkle** Fully implemented at LaddersFree, providing real-time operational visibility and a scalable digital platform. A customer portal was introduced to enhance transparency and communication.
**Sales Capability** Investment in sales capability with two experienced hires to drive growth through a gross-profit-led approach.
**Business Mix** Improved focus on higher-margin services, supporting profitability despite softer demand in certain areas.
**Leadership Strengthening** Enhanced leadership to support scalable growth and improved execution.
The market environment remains steady, with resilient demand for essential services. The Group continues to navigate customer cost pressures effectively, maintaining service continuity and long-term relationships.
Looking ahead, the Group enters the second half with a stable operational footing and a resilient base of recurring revenues. Early activity in the second half has been encouraging, with a focus on disciplined execution, customer value, and sustainable growth. The Board remains confident in the Groups ability to identify and secure growth opportunities, driven by its unique capabilities and go-to-market strengths.
| Metric | H1 2026 (£'000) | H1 2025 (£'000) | Change (£'000) | Change (%) |
|---|---|---|---|---|
| Revenue | 13,188 | 12,083 | 1,105 | 9% |
| Gross Profit | 4,274 | 3,861 | 413 | 10% |
| Adjusted EBITDA | 1,499 | 1,433 | 66 | 7% |
| Free Cash Flow | 824 | 204 | 620 | 304% |
| Cash at Period End | 1,090 | 2,830 | (1,740) | -61% |
| Net Debt | 2,500 | 1,900 | 600 | 32% |