Board Changes

RNS Number : 5958H

React Group PLC

04 December 2020

 

4 December 2020

REACT Group Plc

("REACT" or the "Company")

Board Changes

REACT (AIM: REAT.L), the leading specialist cleaning, hygiene, and decontamination company, is pleased to announce the appointment of Mark Braund as Executive Chairman with immediate effect. Mark has been working with REACT as an operational and strategic adviser since early 2019.  He has a strong track record of leading teams through profitable change and materially improving shareholder value.  Prior to setting up his own advisory practice, Mark was CEO of RedstoneConnect Plc, leading the team through a well-documented turnaround, the profitable sale of legacy assets and carve-out of an exciting software technology business, now known as Smartspace Software Plc.

REACT has been focussed on building revenues and was pleased to report its first operating profit for the six months ended 31 March 2020. The Board believes there is an opportunity to scale the business through organic growth and carefully selected acquisitions focusing on markets where REACT has differentiation, access to higher margins and recurring income.  Mark Braund's experience of driving profitable and sustainable change in companies that have been through turnaround situations will be an important part of executing upon this strategy. 

The Company also announces that Gill Leates has stepped down as the Company's Non-Executive Chairman, with immediate effect, in order to pursue other projects.  Gill has been Chairman and a director of REACT since March 2014 and worked with the Company through its reverse takeover in 2015 and subsequent periods of refocus and restructuring.  The Board would like to thank Gill for her dedicated service to the Company over a number of years.

It has been agreed that Gill Leates will retain 7,975,816 share options which have vested having met the performance criteria set out in the Company's announcement of 17 May 2019. Her remaining 11,963,721 unvested share options have lapsed upon her leaving the board of REACT. The 7,975,816 share options retained by Gill Leates are exercisable at 0.3 pence per share at any time between 3 December 2020 and 3 December 2022.

Shaun Doak, Chief Executive of REACT, said:

"I am delighted Mark Braund is joining the Board as Chair.  The team and I have worked closely with Mark over the last nearly two-years; we value his insight and guidance; we share common values and goals along with ambitious plans to continue transforming and growing the business.  My colleagues and I look forward to working with Mark in his new role.

I would also like to thank Gill Leates for her commitment and service to the Company.  Over the last 6-years Gill has guided REACT through periods of challenge to emerge as the strong market-leading prospect it is today.  We wish her well in her future endeavours.

I am also pleased to report that, following on from the trading update released on 21 October 2020, the positive momentum in the business has continued with trading in the first two months of the financial year going well and the outlook remaining positive. We look forward to updating shareholders further at the time of our annual results at the end of January 2021."

The following information is disclosed pursuant to Rule 17 and Schedule 2(g) of the AIM Rules for Companies.

Mark Andrew Braund, aged 58, is, or has during the last five years been, a director or partner of the following companies and partnerships:

Current directorships/partnerships	Past directorships/partnerships
Wydelta Limited (trading as MB Associates) Suetts Farm	AndersElite Corporate Trustee Ltd AndersElite Holdings Limited Contract Connections Limited Ecom Recruitment Limited Interquest Group Limited (formerly InterQuest Group plc} Interquest Group (UK) Limited IQ Telecom Limited Mint Recruitment Solutions Limited Regen Computing Limited (Dissolved) Smartspace Software Plc (formerly Coms plc and then RedStoneConnect plc)

Mark Braund does not hold any ordinary shares in REACT. Wydelta Limited, a consulting and advisory firm owned by Mark Braund and his wife, Lyn Braund, holds warrants over a total of 19,939,537 ordinary shares, further details of which were announced by the Company on 17 May 2019.

For more information:

REACT Group plc
Shaun Doak, Chief Executive Officer Andrea Pankhurst, Chief Financial Officer	via Allenby Capital 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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