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REACT Group

REAT.L
32
Specialty Business Services · Industrials
Price
42.50 GBp
+0.00 (+0.00%)
Market Cap
10.0M GBp
Exchange
London Stock Exchange
Winston Score
32
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Weak
Stability
Good
Valuation
Data not available

Share count rising — dilution

+107.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 11.3M (2021) → 23.5M (2025)

Winston Score History

The full picture

REACT Group PLC is a small UK-based company that provides specialist cleaning and decontamination services. Its core work includes hazardous waste removal, trauma and crime scene cleaning, and industrial cleaning for clients such as local councils, housing associations, emergency services, and private businesses. The company operates in a niche corner of the facilities services industry where jobs are too dangerous or sensitive for standard cleaning firms.

REACT earns revenue by charging fees for individual cleaning contracts, with work often coming through framework agreements with public sector bodies. It operates almost entirely within the United Kingdom and is a very small business by market standards. Its competitive edge comes from holding the necessary licenses and trained staff to handle hazardous materials legally, which creates a barrier for casual competitors. However, its thin operating margin of around 1% means there is little room for error, and winning larger public sector contracts will be critical to improving profitability over time.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+73.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

£0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

17.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

£1M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

REACT Group is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
22.9%
Thin — 22.9% gross margin
Profit after running costs
Operating Margin
1.3%
Thin — 1.3% operating margin
Return on the money invested
ROCE
2.1%
Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+16.9%
Fast-growing sales (+16.9% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
2.1%
Thin free cash flow (2.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.30
Conservative — low debt load (0.30)
Covers its interest
Interest Cover
0.53x
Dangerous — barely covers interest (0.5x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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