3-Year contract with a leading FM firm

RNS Number : 5116W

React Group PLC

26 April 2021

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

26 April 2021

REACT Group plc

("REACT" or the "Company")

Contract win

3-Year contract with one of the world's leading facility management firms

REACT Group plc, (AIM: REAT.L), the leading specialist cleaning, hygiene and decontamination company, is delighted to announce it has been awarded a material new three-year contract to supply a full range of reactive cleaning and decontamination services to one of the world's leading facility management companies.

The contract represents a material increase in business with one of REACT's existing customers to provide cover to a portfolio of over 2,000 site locations throughout mainland Great Britain and specifies REACT as the Core Vendor, or vendor of choice.  This award is part of the customer's strategy to consolidate supply chains in this category of work, from several hundred smaller suppliers to just one.

The contract will take time to reach maturity while the customer transitions a vast portfolio of locations, which are currently serviced by other suppliers.  REACT have been gearing up to take on this additional commitment and is well placed to support the roll out of both local customer engagement and rapid service delivery.

Although difficult to pinpoint the exact revenue value of the contract given the reactive nature of the work and the time required to transition local and regional relationships from their current suppliers, the customer has historically spent in the region of £2 million per year on this specialist category of work, a figure that has expanded further due to COVID-19 and the result of the customer's own success in growing its portfolio of clients.  REACT has commenced providing services under the contract with immediate effect.

Shaun Doak, Chief Executive Officer, commented :

"We are delighted with the award of this contract. As a team, we work hard to impress our customers with the range, quality and speed of our services.  The award of this contract is this customer's response to our efforts and recognises the uniqueness and value of REACT's specialist cleaning proposition.

The award also highlights the potential for further consolidation in the specialist cleaning industry, one where we believe REACT is fast becoming the go-to choice for customers that need rapid delivery of a suite of specialist cleaning capabilities, nationwide."

For further information:

REACT Group plc Shaun Doak, Chief Executive Officer	Tel: [phone]
Allenby Capital Limited  (Nominated Adviser and Broker) Nick Athanas / Liz Kirchner (Corporate Finance) Amrit Nahal / Tony Quirke (Sales & Corporate Broking)	Tel: [phone]

 

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