REACT Group (AIM:REAT ) said it has been awarded a contract to provide specialist deep cleaning services on a regular basis to one of its Tier-1 Customers operating in the rail sector.
The AIM-listed scleaning, hygiene and decontamination company highlighted the contract as part of essential services and said it wasn’t directly related to Covid-19.
The initial contract is worth around £400k and will run for a period of 35-weeks through to the end of the current calendar year, this morning’s statement detailed.
The company added that the contract was incremental to the work it already carries out for the customer on a regular basis.
“It comes as a direct result of our standout performance elsewhere for this Client and is a strong endorsement of our market-leading expertise,” said Shaun Doak, Chief Executive.
Shares in REACT Group were trading 9.76% higher at 1.35p on Thursday morning.
"REACT is quickly becoming the 'go to' deep cleaning specialist for a number of clients, especially those that operate facilities where cleanliness and hygiene are highly valued,” he said.
He added, “This contract provides further continuity and revenue visibility for the current year and into the next.”
REACT reported last month that trading had been ahead of expectations due to high demand to provide decontamination and infection control services during the Covid-19 pandemic.
The group said it expects to have delivered a small operating profit in the six months to 31 March 2020, putting it in a position to meet or exceed management expectations for the full year.
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REACT Group is also included in the Vox Covid-19 Crusaders index.