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(Sharecast News) - Cleaning and hygiene company React Group said on Monday that it had been awarded a "material new three-year contract" to supply a full range of reactive cleaning and decontamination services to an unnamed global facilities management company.
React stated the contract represented "a material increase in business" with one of its existing customers, with the group now set to provide cover to a portfolio of over 2,000 site locations throughout mainland Great Britain.
The AIM-listed group also added that the award was part of the mystery customer's efforts to consolidate supply chains from several hundred smaller suppliers to just one.
"The contract will take time to reach maturity while the customer transitions a vast portfolio of locations, which are currently serviced by other suppliers. React have been gearing up to take on this additional commitment and is well placed to support the roll-out of both local customer engagement and rapid service delivery," said React.
"Although difficult to pinpoint the exact revenue value of the contract given the reactive nature of the work and the time required to transition local and regional relationships from their current suppliers, the customer has historically spent in the region of £2.0m per year on this specialist category of work, a figure that has expanded further due to Covid-19 and the result of the customer's own success in growing its portfolio of clients."
As of 0845 BST, React shares had shot up 11.73% to 2.85p.
React stated the contract represented "a material increase in business" with one of its existing customers, with the group now set to provide cover to a portfolio of over 2,000 site locations throughout mainland Great Britain.
The AIM-listed group also added that the award was part of the mystery customer's efforts to consolidate supply chains from several hundred smaller suppliers to just one.
"The contract will take time to reach maturity while the customer transitions a vast portfolio of locations, which are currently serviced by other suppliers. React have been gearing up to take on this additional commitment and is well placed to support the roll-out of both local customer engagement and rapid service delivery," said React.
"Although difficult to pinpoint the exact revenue value of the contract given the reactive nature of the work and the time required to transition local and regional relationships from their current suppliers, the customer has historically spent in the region of £2.0m per year on this specialist category of work, a figure that has expanded further due to Covid-19 and the result of the customer's own success in growing its portfolio of clients."
As of 0845 BST, React shares had shot up 11.73% to 2.85p.