REG - Restore PLC - FY21 Trading Update Ahead of Expectation

RestoreAnnouncement

26/01/2022 07:05

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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 £255 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 £86 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,
£200 million unsecured, multicurrency revolving facility agreement
("RCF") on enhanced terms with a syndicate of six lenders, which replaces the
Company's previous £160 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 £50
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
(http://www.restoreplc.com/)

Charles Bligh,
CEO
 020 7409 2420

Neil Ritchie, CFO

 

Peel Hunt
LLP                                                                     www.peelhunt.com
(http://www.peelhunt.com/)

Mike
Bell
020 7418 8900

Ed Allsopp

 

Buchanan Communications
         www.buchanan.uk.com (http://www.buchanan.uk.com/)

Charles
Ryland
020 7466 5000

Vicky Hayns

Stephanie Whitmore

 

 

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