Restore PLC FY21 Trading Update Ahead of Expectation (6237Z)
January 26 2022 - 2:00AM
UK Regulatory
TIDMRST
RNS Number : 6237Z
Restore PLC
26 January 2022
26 January 2022
Restore plc
("Restore" or the "Group" or "Company")
FY21 Trading Update Ahead of Expectation
Restore plc (AIM: RST), the UK's leading provider of integrated
information and data management services, secure technology
recycling, and commercial relocation solutions, provides the
following trading update for the year ended 31 December 2021
("FY21"), ahead of the publication of Group's full year results on
16 March 2022.
FULL YEAR TRADING UPDATE
The Board is pleased to report that Restore continued to
generate strong trading momentum across the Group through the final
quarter of the year, delivering FY21 performance ahead of its
previous expectations.
Activity levels continued to grow through the final quarter,
with positive organic performance further enhanced by very strong
commercial execution and ongoing efficiency gains within the
Group's operations. The eight acquisitions completed in 2021 are
all contributing financially and are either in line with, or ahead
of, plan, and furthermore have enabled the business to
significantly extend its geographic footprint and service
offering.
Restore expects to report record levels of revenue and
underlying operating profit for FY21 as a result of this strong
execution of the Group's acquisition strategy, supported by
sustained organic momentum which underlines the critical nature of
the services Restore provides to its customers. The increasing
demand for Restore's services and the excellent customer
satisfaction ratings the business achieves, continue to secure high
customer retention rates and repeat business.
As a result of this positive momentum, the Group's annualised
revenue run rate has expanded to GBP255 million, an 18% increase
over the pre-pandemic period, with profitability showing strong
progression in H2 as a result of the increased scale, efficiency
gains and synergy realisation.
Cash generation continued to be strong with leverage at 31
December 2021 of approximately 1.8x EBITDA (pre IFRS16), in line
with the Board's expectations. The Group has invested GBP86 million
in the last 12 months on value accretive acquisitions in line with
the strategy to deliver scale and capability with resulting synergy
across four of the five business units.
NEW DEBT FACILITIES
As part of establishing a platform to support its long-term
strategic objectives, the Group is pleased to announce that it has
entered into a new, GBP200 million unsecured, multicurrency
revolving facility agreement ("RCF") on enhanced terms with a
syndicate of six lenders, which replaces the Company's previous
GBP160 million secured revolving credit facility.
The new RCF, which substantially increases the Group's funding
capacity for investment activity, is for an initial three-year
tenor, with an option to extend the term by two further one-year
periods at the Company's request, subject to lender consent. The
new RCF has financial covenants that are consistent with the
previous facility and also includes an additional GBP50 million
uncommitted accordion.
OUTLOOK
The Group is on track with the stated strategy as set out at the
capital markets event in November 2021 and enters 2022 with
positive trading momentum, supported by:
-- A strong scaleable platform with ESG at its core;
-- Underlying organic growth, market share gains and new customer wins secured during 2021;
-- Expected market share gains with new organic wins in 2022
from a significant pipeline of customer engagements;
-- Ongoing cost reduction programmes and further synergy potential from recent acquisitions;
-- The full year benefit of accretive acquisitions made during 2021; and
-- A substantial and high-quality acquisition pipeline.
Trading since the end of FY21 has followed the same positive
trajectory seen in December and the Board remain very confident in
delivering further significant progress in 2022.
Charles Bligh, CEO, commented:
"I am delighted with full year results for 2021 which are ahead
of the Board's expectation and show increasing momentum in the
business.
We finish the year with record financial results and a business
that is stronger and more aligned to the future growth
opportunities across our markets. The critical nature of the
services we provide, the recurring and highly cash generative
nature of the business model and the strong team we have in place
gives a high degree of confidence as we look ahead to more exciting
growth in 2022 in line with the ambitious growth objectives I
described in the capital markets day last year."
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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