React Group’s ‘extreme cleaning’ services drive huge profit growth

Specialist cleaning firm React Group has released a bumper set of half year results, with profits surging and significant revenue growth.

The Birmingham headquartered company, which offers “extreme cleaning services” for a range of situations including crime scene clean-up, saw pre-tax profits increase by 35 per cent to £1.3m, thanks to strong sales in the six-month period ended March 31, 2024.

Its revenue also grew to £10.6 m, up 13 per cent from the second half of 2023.

The company secured and renewed multiple contracts during the period, including a £1.3m annual deal with a “major university”. 

React Group CEO Shaun Doak said: “We are delighted with the group’s performance, particularly in a year characterised by significant investments. 

“Despite the challenges, we have maintained strong sales momentum and secured higher margin business, which is a testament to our strategic efforts and operational efficiencies.

“In addition to securing new material contracts, the group has also achieved numerous small and medium-sized wins, whilst simultaneously renewing and enlarging existing contracts.

“This consistent success across various deal sizes underscores the quality of the group’s value proposition and is testament to our effective selling and cross-selling to drive growth.

“Looking ahead, the pipeline for the remainder of the year remains strong. This solid foundation provides the board with considerable confidence in our ability to meet full year market expectations. 

“The group is confident that the strategic investments and diversified contract wins position the business well for continued success.”

The firm said it would shift its focus away from low margin opportunities to higher-margin businesses, in line with its long-term growth objectives. 

As a group it offers its services to over 1,200 customers, mostly in the private sector, with better-known clients including Costa Coffee, DPD, Hitachi, and Lidl.

It also offers “extreme” service such as animal and human fatality clean-up, hazardous and biohazard waste removal, and crime scene and forensic cleaning.

The group’s growth has been underpinned by its strong customer retention, while securing contract expansion and retention, as well as offering massive cross-selling possibilities.