StockMarketWire.com - Specialist cleaning group React booked a 48% rise in first-half profit, boosted by demand for decontamination and deep cleaning services during the pandemic.

Net profit for the six months through March increased to £74 million, up from £50 million year-on-year, as revenue climbed 20% to £2.51 billion.

Adjusted earnings before interest, tax, depreciation and amortisation jumped to £369 million, up fro £85 million.

React did not declare an interim dividend. It had net cash of £771 million at 30 March, which represented the balance for the enlarged group following the acquisition of Fidelis.

'We are delighted with the results for the first half; React continues to demonstrate momentum in growth and improvements in operational performance and profitability,' said chief executive Shaun Doak said.

'Although Covid-19 continues to present both opportunities and challenges to different aspects of the business we have continued to make strategic progress, investing in sales and marketing, new technology and people to drive growth, increase operational efficiency and improve customer value.'

Doak said the second half had started well. Fidelis was acquired at the end of March and the company had reported recording trading months in April and May.

'This, together with important post-period customer contract wins for React, announced on 20 April, 26 April and 18 May, support a strong positive outlook for the medium to long term,' he said.

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