REACT (REAT ) has won new contracts for its recurring contract maintenance cleaning business and its specialist reactive cleaning business, including one worth £1.2 million.
CEO of the specialist cleaning, hygiene, and decontamination company, Shaun Doak, said the company’s latest contract wins highlight the value of the Group’s proposition “and further adds to the Company’s successful track record in securing long-term, recurring revenue.”
The first contract win, which is a three-year contract with a total value of around £1.2 million (around £0.4m per year), will see the company provide its maintenance cleaning and facility services to the UK operation of a large multi-national manufacturing and distribution business.
The second contract, of which the value remains undisclosed, is a 12-month rolling contract. React will provide specialist emergency cleaning services to trains operated by an unnamed business described as “one of the UK’s leading train operators based in southern England.”
Shares in REACT Group were trading 6.25% higher at 1.7p this morning following the news.
The work under this second contract will include specialist cleaning of the underside of train carriages impacted by animal strikes and fatalities. The company noted that this contract adds to a number of other contracts operated by REACT in this sector, making the company “one of the largest providers of this type of emergency service to train operators in Great Britain.”
In addition, the two secured contracts announced today, which are expected to commence in April 2022, will be complemented by smaller contract wins across the business, it highlighted.
In January 2022, the company told investors that the new financial year had begun well, with a small number of post-period contract awards unveiled, some of which are material in value.
The company believes that there are opportunities for growth from within the contracts it was awarded last year, where they have yet to reach expected maturity, including the large 3-year ‘core vendor’ award made to REACT by one of the world’s largest FM companies, it outlined.
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