Restore PLC Strategic acquisition of The Document Warehouse (3535Q)
October 27 2021 - 2:00AM
UK Regulatory
TIDMRST
RNS Number : 3535Q
Restore PLC
27 October 2021
27 October 2021
Restore plc
("Restore" or the "Group" or "Company")
Strategic acquisition of The Document Warehouse
Continued expansion of Records Management
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
announce that is has acquired 100% of the share capital of The
Document Warehouse in the UK ("TDW"), for a cash consideration of
GBP6.5m.
TDW is an established records management business located in
Sittingbourne, Kent, with c.124k boxes under management and
generating annual revenue of c.GBP550k. Importantly, the business
has a modern freehold warehouse and logistics centre (which is a
majority of the consideration) that will provide an additional,
strategically well-located site with capacity to service the key
London and the South of England markets for Restore's growing box
estate and to further consolidate existing sites.
To support the long-term trend of annual organic growth of 1-2%
pa in boxes under management, Restore has a strategy to expand
capacity, whilst also reducing cost through increasing storage
density and consolidation of existing premises. Whilst most of the
Group's storage footprint is leased, this opportunity to acquire a
freehold site with available capacity and future development
potential, represents an excellent strategic opportunity.
Key features of the acquisition are:
-- Current boxes under management c.124k, servicing customers
across London and the South of England
-- Capacity to hold up to a further c.350k additional boxes in the existing building
-- Potential to expand capacity to c.800k-1million boxes subject
to planning permission which will create total additional capacity
of c.680k boxes
The additional c.680k capacity will provide opportunity for
further property consolidation in the South of England, as well as
capacity for future acquisitions and further organic growth from
existing customers around London. This follows completion of a
significant extension at Restore's sector leading Rainham facility
in 2020.
This is the third Records Management investment in the last nine
months, which together have increased Restore's Records Management
capacity by c.7% (c.1.8m boxes). Additional strategic capacity
investments have included:
-- Entry into a new lease for a c.960k box facility in Heywood,
Lancashire (August 2021) with an option to expand occupancy at the
site by a further 1.1m boxes
-- Through the EDM acquisition (May 2021), 3 leasehold sites
acquired with spare box capacity of c.230k
-- This acquisition of TDW will provide a further c.680k capacity with planning approvals
This is the sixth acquisition by Restore this year and brings
the total invested year to date to GBP83.9m.
Restore will hold a Capital Markets Day on 11 November 2021 to
further outline the growth strategy and ESG strategy for the Group.
Please contact Buchanan via restore@buchanan.uk.com if you wish to
register your interest.
Charles Bligh, CEO, commented:
"I am delighted with the acquisition of TDW, which brings new
customers and associated revenue to the Group, alongside a
strategically valuable freehold site. The potential to create c.
680k of new box capacity near London will enable Restore to support
both organic and inorganic growth in the region as well as
generating further cost saving opportunities as part of our
footprint optimisation strategy.
"We have made excellent progress on our strategic priority to
grow with acquisitions, with close to GBP84m invested across six
transactions so far this year and we have a number of well advanced
opportunities across all business units to close in 2021 and
2022."
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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