REG - Restore PLC - Trading Update, Contract Award and CME

RestoreAnnouncement

16/11/2023 07:00

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RNS Number : 6025T  Restore PLC  16 November 2023

16 November 2023

 

 

Restore plc

("Restore" or the "Group" or "Company")

 

Trading Update, Contract Award and Capital Markets Event

 

Trading Update

 

Restore plc (AIM: RST), the UK's leading provider of digital and information
management and secure lifecycle services, today issues the following trading
update for the 10 months ending 31 October 2023 (the "Period").

 

Since the half year, the Group has continued to deliver solid revenues
underpinned by the core storage and highly contracted and recurring income
streams that are a central feature of the Group's profitability and cash
generation.

 

In Records Management, which represents a significant majority of the Group's
operating profitability, trading has been good with continued growth,
resulting in strong revenue and profit levels. The continued focus on cost
management in the organisational structure and the property estate will
deliver a more efficient operating model.

 

In Digital, whilst the lower level of non-recurring contracts, particularly in
bulk scanning, continues, the business has demonstrated strong cost management
and good momentum with significant contract wins with HM Revenue &
Customs, as announced on 6 September 2023, and the HM Land Registry (HMLR), as
detailed below.

 

In Technology, as previously outlined, volumes of quality IT assets for resale
remain subdued given the economic uncertainty and the low point in the IT
refreshment cycle. Action has been taken to focus on the higher-margin
activities and leverage our core capabilities in this highly fragmented
market.

 

In Datashred, trading has been as anticipated, reflecting the lower recycled
paper pricing. Cost challenges are being addressed.

 

Harrow Green continues to trade well and in line with management expectations.

 

Cash generation in the Period has remained healthy. The restructuring and
change processes undertaken during the Period have required additional cash
expenditure with the year-end net debt position expected to be broadly in line
with the position at the previous year-end.

 

The Group remains on track to deliver a full year performance in line with
market expectations.

 

Contract Award

 

Restore Digital has been awarded a contract by HMLR with a minimum total
contract value of £4.5m to provide a virtual mail room, document scanning and
data extraction services. Under the three-year contract, which commenced in
September 2023, Restore will operate and manage a central mail room where
items are received, sorted and prepared for scanning, with document
classification and data extraction completed prior to delivery into HMLR.

 

Capital Markets Event

 

Restore is this afternoon hosting a Capital Markets Event ("CME") for
investors and analysts at which it will set out how it is undertaking to
reinvigorate the Company and capitalise on the underlying strength of its
market-leading operations. Management will set out the Group's renewed focus
on operating margin and cash generation.

 

The CME will include presentations from Charles Skinner, CEO, Dan Baker, CFO,
and the Managing Directors of Restore's five business units.

 

The event takes place today at 2:30pm at Upper Ground Wing, ETC Venues, St
Paul's, 200 Aldersgate, London, EC1A 4HD. If you would like to attend and have
not yet registered, please register via Connie.Gibson@FTIConsulting.com
(mailto:Connie.Gibson@FTIConsulting.com) .

There will be a live webcast for those unable to attend in person. To register
for the webcast, please email Connie.Gibson@FTIConsulting.com
(mailto:Connie.Gibson@FTIConsulting.com) .

 

A playback of the webcast and presentation will be made available on the
company's website later today at
www.restoreplc.com/for-investors/#reports-and-presentations
(http://www.restoreplc.com/for-investors/#reports-and-presentations) .

 

 

For further information please contact:

 

 Restore plc                                    www.restoreplc.com (http://www.restoreplc.com)
 Charles Skinner, CEO                           +44 (0) 207 409 2420
 Dan Baker, CFO
 Chris Fussell, Company Secretary

 Investec (Nominated Adviser and Joint Broker)  www.investec.com (http://www.investec.com)
 Carlton Nelson                                 44 (0) 207 597 5970
 James Rudd

 Canaccord Genuity (Joint Broker)               www.canaccordgenuity.com (http://www.canaccordgenuity.com)
 Max Hartley                                    44 (0) 207 523 8000

 Alex Aylen

 FTI Consulting (PR Enquiries)                  www.fticonsulting.com/uk (http://www.fticonsulting.com/uk)
 Nick Hasell                                    +44 (0) 203 727 1340
 Alex Le May

 

 

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