TIDMRST
RNS Number : 8334L
Restore PLC
15 September 2021
15 September 2021
Restore plc
("Restore" or the "Group" or "Company")
Positive Trading Momentum Continues
Restore plc (AIM: RST), the UK's leading provider of integrated
information and data management services, secure technology
recycling, and commercial relocation solutions, is pleased to
provide the following trading update for the eight months to 31
August 2021.
Following the strong first half performance reported on 27 July
2021, the Group has achieved further positive trading momentum in
the third quarter and continues to make excellent progress on its
strategy to expand through organic growth, strategic acquisitions
and margin improvement:
-- Trading in July and August has continued the positive
momentum achieved throughout the year, supporting confidence in a
strong second half performance in line with the Board's
expectation
-- Current run rate level of revenue now at GBP254 million, with
run rate EBITDA of GBP74 million (c.18% growth above pre-COVID-19
revenue levels)
-- Customer demand continues to increase across all business
units with particularly strong demand growth experienced in
Technology, Datashred and Harrow Green in August
-- Restore continues to deliver positive net box growth in its
Records Management business and restates previous guidance of
between 1-2% box growth for 2021
-- EDM performance in line with expectations, with operational
integration expected to complete on 1 October 2021. Customer
experience during integration has been excellent. Synergies
expected to be at c.GBP2.6 million pa which is at the higher end of
the range communicated at the time of the acquisition
-- PRM Green, acquired on 10 August 2021 with average yearly
revenue of GBP3 million and EBITDA of GBP0.9m, further progressing
Restore Technology's leading position in the IT Asset Disposal and
Recycling market. Overall Restore Technology has doubled in size in
the last 18 months with run rate revenues in excess of GBP30
million pa
-- In H1 the Group completed acquisitions to the value of
GBP80.9 million and in H2 is expecting to complete acquisitions to
the value of GBP20-30 million, including the PRM Green acquisition
already completed. This is in line with Restore's stated strategy,
and there is a very good pipeline of deals for H2 at advanced
stages across all business units. Our pipeline for acquisitions for
2022 is also building strongly
-- Underlying cashflow dynamics continue to be very positive,
albeit with increasing working capital investment in the second
half to capitalise on the strong bounce back in revenue
-- Group leadership talent has significantly improved in the
last 18 months and with selective recruitment and talent from new
acquisitions, the platform for growth is strong. In addition, with
rising demand Restore is aggressively expanding the scale of
operations; specifically the Group's digital capability with a
significant recruitment plan in place for H2 across all business
units
CONTINUED DELIVERY OF GROWTH STRATEGY
The Group has a clear strategy to become the UK's leading
provider of integrated information and data management services,
secure technology recycling, and commercial relocation solutions.
Delivery of this will enable sustainable and significant profit
growth, well ahead of our underlying markets, enhanced further by
disciplined and effective investment of our cash flows into both
organic and inorganic opportunities.
Restore has made significant progress in this strategy in the
last two years, with the Group considerably enhanced in size (c.18%
larger), capability and market position. Despite the challenges
posed by the pandemic, Restore has grown its overall market share
significantly from 11% to 13% over the past 12 months. In addition,
strategic acquisitions in the last 12 months have transformed the
scale and growth opportunity of our Digital, Records Management and
Technology businesses. Datashred and Harrow Green have notably
improved their operating platforms to enhance customer experience
and increase margins and with organic demand and acquisitions
expect a very strong contribution to profit growth.
Our inve stment case is compelling with our growth strategy to
double profits in the medium term.
Charles Bligh, CEO, commented:
"Restore continues to perform very well and I am particularly
pleased with the sales activity levels across all the business
units which shows real demand for our mission critical services.
The summer period saw first half positive momentum continued and
consequently the Board remains very confident in delivering its
full year expectations and in line with our objective of
significant growth.
Importantly, the pandemic has not impacted our strategic
ambition or progress, with current run rate revenue of GBP254
million pa well above pre COVID-19 levels. We expect to deliver
further growth in H2 and are hiring talent aggressively as a
result."
Restore will hold a Capital Markets Day on 9 November 2021.
Restore plc www.restoreplc.com
Charles Bligh, CEO 020 7409 2420
Neil Ritchie, CFO
Peel Hunt LLP www.peelhunt.com
Mike Bell 020 7418 8900
Ed Allsopp
Buchanan Communications www.buchanan.uk.com
Charles Ryland 020 7466 5000
Vicky Hayns
Stephanie Whitmore
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END
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