26th April 2021, 6pm – 9.30pm

Dates for Upcoming events included in the Annual Pass:

  • Monday 26th April
  • Tuesday 27th April 2021 – Results roadshow
  • Monday 10th May 2021
  • Tuesday 11th May – Mello Energy
  • Monday 24th May 2021
  • Monday 7th June 2021
  • Tuesday 15th June – Investment Trusts  & Funds
  • Monday 21st June 2021
  • Monday 19th July 2021

Programme for Monday 26th April

  • 6.00 pm Mello welcome and news with David and Karin
  • 6.10 pm Ed Croft – First quarter analysis of the Stockopedia competition
  • 6.40 pm Company presentation by Belvoir
  • 6.50 pm Charity pledge – Cockney Rebel @RebelHQ
  • 7.00 pm Company presentation by Trident Royalties
  • 7.20 pm Steve Clapham – Specialist Insights and Investor Red Flags by Behind the Balance Sheet
  • 7.40 pm Company presentation by React
  • 8.00 pm Mello Soap Box with Cockney Rebel – Are you getting the correct share prices?
  • 8.10 pm Company presentation by Wentworth Resources
  • 8.40 pm Results Round Up with Kevin Taylor, Gordon Jones (glasshalfull) & Alan Charlton

Company Presentation – React plc

REACT is a leader in the specialist cleaning, decontamination, and hygiene sector.  Our purpose is to rapidly return customers’ property to safe, clean, operational use through regular specialist cleaning and emergency response to potentially harmful incidents.

The core business includes regular deep cleaning regimes in the health service, on parts of the rail network and the highways; emergency call-out work to respond to trauma, anti-social behaviour, and other hazardous incidents across a range of sectors including working for some of the industry’s largest facilities management (“FM”) firms.  80% of revenue is contracted and recurring.

Work undertaken has tangible value; the cost of not being able to operate a train, open a hospital ward or occupy property is material, hence the work REACT does is valued and operates at higher margins than regular cleaning.

A strong balance sheet, great customer relationships and growing demand for national coverage positions REACT well to materially improve shareholder value through continued organic growth and selected M&A.

Mark, Andrea and Shaun have responded to your questions from MelloMonday’s webinar below:

  1.  Are these two recent contract wins in current forecasts or should we expect forecasts to increase?
    As discussed during the Q&A at the tail end of the session, we are leaving the current forecast unchanged at present.

2.  How will you maintain high margin if you now are a facilitator between the large FM company and their 100s of small specialist contractors? Do the small contractors need to cough up margin to you? (£2m pa biz is too big to handle in-house so you’re going to use 3rd party)
FM customers are of great importance to REACT, however they are only part of our portfolio of Customers.
REACT has demonstrated how the evolution of its value proposition, alongside business mix, has provided strong margins overall; these contracts do not compromise this.
The operational gearing available to the REACT as it scales, means much more of the gross margin is converted to operating profit and cash, which thereby improves shareholder value.

We have been planning for these new contracts for several months, putting in place the capacity to take on the incremental workload as it evolves through the transition period.  We also have the additional capacity provided by the acquisition of Fidelis, therefore our use of our business partner community will be measured and in line with the continuous development of the business.

Please note: REACT is not operating as a facilitator between the FM firm and incumbent suppliers.  REACT is replacing the incumbent suppliers.


3.  Are you a Covid business? Will growth go into reverse when Covid is largely out of the way?
No REACT is not a COVID-19-only business.
At the height of the pandemic, REACT reported in last year’s numbers that COVID-19 decontaminations accounted for just 10% of REACT’s revenues.  If we removed the revenue and profit associated with COVID-19 decontaminations from the numbers, but accepted the negative impact of lockdown on some sectors of the business, the revenues still grew organically by 26% and profit contribution (gross profit) grew by 41%.  This trend has continued in 2021.
What we have found is that as the lockdown recedes some of the work previously placed on hold is now coming through.  Additionally our relationship and credentials with Customers have improved during the period providing access to many more opportunities for REACT’s specialist cleaning core business, such as the two material contract wins recently announced.


4.  In previous presentation, you focused on managing self-employed people.  How easy is it going to be to find the staff to meet the new business  you have gained.
Apologies if we confused in our previous presentation, however we have not been focused on managing self-employed people.

Our core workforce are all employed by REACT.  We augment this team with specialist business partners, some of whom run small businesses and may be self-employed, however this is a fraction of the business partner network, who in the main are small yet properly managed commercial businesses.
We have not yet experienced insurmountable challenges with hiring new talent into the team, in fact we have a solid wait-list of candidates covering a number of roles.

5.  Is there a risk that if you acquire companies that do what you core customers do, there may be greater difficulty as you may compete with customers for tenders.
REACT is not attempting to be an FM business.  Some of the work REACT carries out may compete with some activities of the FM customers we work with (for example some FM firms have a cleaning division within their business), however most progressive FM firms are seasoned solution providers and have for some time leveraged the skills of competitors, especially smaller specialists like REACT, to deliver the best solution to their end-customers.  This approach is quite mature in a number of other industry sectors  (e.g. IT) and therefore with careful management, we believe it is viable in the specialist cleaning sector for REACT.


6.  Did you consider the Aquis exchange rather than AIM?
REACT was already on AIM when this management team took control of the business.  We are uncertain of the consideration given to AQUIS prior to our involvement.  Certainly we believe AIM is the right market for REACT now.

7.  Is the £m pa business achieved today from one of the big 4/big 5 you mentioned earlier eg Initial, Rentokil?
For commercial confidentiality reasons we are unable to provide details of who the customer is beyond stating that they are one of the world’s leading facilities management companies.

8.  How many shares do you three own?
In total, the three of us (Mark Braund, Chairman, Shaun Doak, CEO and Andrea Pankhurst, CFO) own and have options/warrants over a total of 54,098,164 shares, representing c.10% of the fully diluted share capital.

 It is worth noting that when this management team took control of the business, the share price was just 0.165p, options and warrants were put in place in part as a form of salary sacrifice programme, with a strike price of 0.3p, a significant premium to the share price at the time.  Options and warrants were fully aligned to shareholder interests, awarded based on share price hurdles from 0.5p through to 2.8p; the final hurdle representing a 17-times multiple of the share price when the management team took control.


9.  Isn’t OCS a major competitor?
OCS (Office Cleaning Services) is a large group of cleaning, facilities management and serviced office businesses.  Whilst REACT will compete with a small part of the OCS business, their activities and scale means we really are no competitor of theirs; they would see the likes of Rentokil and PHS as their competitors, not REACT.  Similar to other businesses of their scale and focus, OCS also subcontract work to firms like REACT in the interest of optimising their business and delivering the best solution to their customers.

10. What specialist skills / equipment are required ?
REACT operate a broad range of specialist services, each requiring specialist skill sets and some specialist equipment probably too broad to detail here.  Please visit our website at www.reactsc.co.uk for more information.

Mark Braund, Chairman; appointed December 2020 having worked with the Group as its strategic & operational advisor throughout the turnaround period.  Mark has a strong track record of leading teams through sustainable and profitable change and materially improving shareholder value.  Mark has significant experience across a number of business sectors, both UK and overseas.  He has been the CEO of two AIM listed businesses, the most recent being RedstoneConnect Plc., leading the team through a well-documented turnaround, the profitable sale of legacy assets and the development/carve-out of an exciting software technology business, now known as Smartspace Software Plc.

Ed Croft – First quarter analysis of the Stockopedia competition

Ed will be analysing the Stockopedia competition share selections over the first quarter of this year.



About Edward Page Croft

Edward Page Croft is the founder and CEO of investment website Stockopedia. Ed is a trained investment manager and programmer who aims to bring the art of smarter investment decision making to a wider audience through the web.

Edward Page Croft, Stockopedia

Introduction to …..Trident Royalties plc

Trident Royalties Plc, is a growth-focused diversified mining royalty and streaming company listed on the AIM market of the London Stock Exchange (Ticker TRR). Trident is managed by an experienced team of mining finance professionals seeking to provide investors with exposure to a mix of base and precious metals, bulk materials (excluding thermal coal) and battery metals in resource-friendly jurisdictions. Trident is represented in London, Perth and Denver.

The full presentation on Trident will take place on 27th April at 2pm

Company Presentation – Wentworth Resources plc

Wentworth Resources plc (AIM-listed: WEN) is a leading, domestic natural gas producer in Tanzania with a core producing asset at Mnazi Bay in the onshore Rovuma Basin in Southern Tanzania. The demand base in-country is growing and with an ambitious universal energy access target set by the Government for 2030, Wentworth has a vital role to play in driving up access by ensuring a reliable, affordable and growing supply of natural gas into the local market. Following a new dividend policy launched in 2019, Wentworth is committed to responsible growth that maintains returns for shareholders. With revenues underpinned by long-term fixed price contracts, no debt and a limited work programme, Wentworth represents a resilient and sustainable investment opportunity for the near and longer-term.

Katherine Roe, CEO

Katherine has over 20 years of senior corporate and capital markets experience. Having worked as Chief Financial Officer for Wentworth following her role as Vice President Corporate Development & Investor Relations in 2014 – Katherine was appointed as CEO in January 2020. Prior to Wentworth, Katherine spent 11 years at Panmure Gordon & Co having moved from Morgan Stanley’s investment banking division. As well as our CEO, Katherine is an independent Non-Executive Director of ITM Power PLC and Longboat Energy PLC.

Introduction to….. Belvoir Group plc

Belvoir Group PLC – UK-wide property franchise group


Founded in 1995 and listed on AIM since 2012, Belvoir Group (BLV.L) operates a multi-brand property franchise network of 439 offices delivering residential lettings and sales, and property-related financial services across the UK.  Managing over 71,500 properties, Belvoir reported profit before tax up 20% to £6.7m in 2020 and marked its 24th year of uninterrupted profit growth.

The full presentation from Belvoir Group will take place on Tuesday 27th April at 1pm.

Results Round Up with Paul Scott, Gordon Jones (glasshalfull) & Alan Charlton

Kevin Taylor

Gordon Jones (@glasshalfull)

Alan Charlton

Specialist Insights

Steve Clapham

Stephen Clapham of investment research and training consultancy Behind the Balance Sheet will be here again with another instalment of his accounting red flags and investing tips series. In accounting red flags he will talk about comparing operating cash flow to earnings, and give some tips on adjustments to ensure you are comparing like with like. In the investing tips series, he will explain why supply is often a much better indicator to use than demand when evaluating the outlook for industry pricing.


Behind the Balance Sheet is an investment research consultancy which creates bespoke research for large institutional investors and produces training programmes for their analysts and portfolio managers. The firm was founded in 2012 by Steve Clapham, who has 30 years of experience analysing and investing in equities. He spent some 20 years as a rated sell-side equity analyst before becoming a partner of a multi billion hedge fund in London in 2005.

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