TIDMRST
RNS Number : 4760O
Restore PLC
01 February 2023
1 February 2023
Restore plc
("Restore" or the "Group" or "Company")
Trading Update
FY22 performance in line with expectations
Restore plc (AIM: RST), the UK's leading provider of digital and
information management and secure lifecycle services, is pleased to
provide a trading update for the year ended 31 December 2022
("FY22"), ahead of the publication of the Group's full year results
on 16 March 2023.
FULL YEAR TRADING UPDATE
The Board is pleased to report that Restore has performed in
line with expectations for the year ended 31 December 2022,
achieving strong revenue and profit growth, demonstrating the
Group's underlying resilience during a challenging economic
period.
-- Records Management net box growth of c1.5% for the year
(FY21: 1.3%) driven by higher general activity levels and service
contract wins during the year.
-- Records Management achieved strong sales during the year
including major storage and service contract wins with BBC Heritage
(c.GBP22 million over 10 years) and Department for Work and
Pensions (c.GBP1 million per year) leading to an increase in
utilisation during the year from 92% to c.97% by the end of
2022.
-- As a result of this growth, the property estate has been
reconfigured to best utilise the space available, resulting in some
non recurring property costs in H2 together with further property
costs on acceleration of consolidation of the estate to more
efficient premises.
-- Restore Digital performed very strongly driven by new
contracts wins and Datashred also delivered growth.
-- Restore Technology customer demand and operational efficiency improved in Q4 as expected.
-- Five acquisitions completed during 2022 across Restore
Technology, Restore Records Management and Restore Harrow Green for
c.GBP12.4m.
-- Leverage at 31 December 2022 was 1.7x EBITDA, well within the
Group's target range of 1.5- 2.0x EBITDA, and the Group retains
substantial headroom across its borrowing facilities.
OUTLOOK
The Group enters 2023 with positive momentum and continues to
see substantial growth potential across its organic and acquisition
strategies, with opportunities to improve margins further through
pricing and cost synergies.
Whilst the macro-economic conditions and inflationary
environment continue to be uncertain, the Group has plans in place
to meet the challenges:
-- Pricing: Annual price rises for a significant proportion of
the Group's revenues were introduced from 1 January 2023, with
prices rising more than in previous years reflecting the higher
input costs. Other contract price increases are planned to be
implemented throughout the year according to renewal dates,
typically based on CPI for the past 12 months.
-- Cost: As previously announced, the Group is making good
progress on cost reductions of at least GBP3 million for 2023
across cost of sales and operating overheads as well as supplier
rationalisation with over GBP1m of these savings having already
been actioned.
-- Acquisitions: The Group will remain disciplined and focused
on delivering strong returns from its acquisition programme. Whilst
the acquisition pipeline for FY23 remains strong, the focus in H1
will be on executing price rises, cost management and organic
contract wins. We expect pricing for assets will also moderate.
-- Cash Generation and Balance Sheet: We expect the Group to
remain strongly cash generative in FY23 and debt levels to reduce
during the year, in the absence of acquisitions.
-- Box Growth: Records Management anticipate that net boxes will
continue to grow strongly and within the guided range of 1% to 2%
for FY23 as a result of reported new wins and organic growth from
existing customers.
CHARLES BLIGH, CEO, commented:
"Restore delivered another year of revenue and profit growth and
I am pleased how the whole team navigated the uncertainties of 2022
to finish in a strong position with major contract wins and
excellent operational execution for customers, together with a
robust financial position.
Whilst the macro-economic outlook is uncertain, our markets
remain attractive as our essential services are needed more than
ever to help customers reduce their costs while delivering
improvements in security and data management and we have plans in
place across both pricing and the cost base to address these macro
challenges. Accordingly, we are confident that FY23 will be another
year of good progress."
*Note: Analyst consensus forecast FY22 Adjusted PBT of GBP41.1m,
with a range of GBP40.0m - GBP42.0m
For further information please contact:
Restore plc www.restoreplc.com
Charles Bligh, CEO +44 (0) 207 409 2420
Neil Ritchie, CFO
Investec (Nominated Adviser and Joint Broker) www.investec.com
Carlton Nelson +44 (0) 207 597 5970
James Rudd
Canaccord Genuity (Joint Broker, Corporate Advisor)
www.canaccordgenuity.com
Max Hartley +44 (0) 207 523 8000
Chris Robinson
Citi (Joint Broker) www.citigroup.com
Stuart Field +44 (0) 207 986 4074
Laura White
Buchanan Communications (PR Enquiries) www.buchanan.uk.com
Charles Ryland +44 (0) 207 466 5000
Jack Devoy
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END
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