REG - Restore PLC - Trading Update

RestoreAnnouncement

15/05/2023 07:00

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RNS Number : 3378Z  Restore PLC  15 May 2023

15 May
2023

 

Restore plc

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

 

Trading Update

 

Restore (AIM: RST), the UK's leading provider of digital and information
management and secure lifecycle services, provides the following trading
update for the four months ended 30(th) April 2023 (the "Period"), ahead of
its Annual General Meeting to be held Tuesday 16(th) May 2023.

 

Revenue for the first four months at £92.8m, has continued to increase, up
c.4% on the prior year.

·      In Digital and Information Management, substantial price
increases were successfully implemented at the start of the year and, combined
with increased activity from new customers and ongoing cost saving measures,
are offsetting the large non-repeating public sector contract that benefitted
the Digital business during H1 last year. In Records Management, the BBC
contract, the largest in Restore's history, has started well and during April
the transfer of artefacts to our facilities commenced as planned. Expected net
box growth for FY23 continues to be strong and within the guided range of 1%
to 2%.

·      In Secure Lifecycle Services activity levels in Datashred and
Harrow Green are in line with management expectations for the Period, together
with good cost control. Technology is seeing strong demand for ultra secure IT
Destruction and IT Relocation projects (together representing a combined c.20%
of Technology revenue). However there continues to be a slower than
anticipated recovery in hardware recycling volumes, consistent with recent IT
sector reports that indicate new PC/Laptop sales were down 25-30% in Q1 2023
following elevated pandemic demand.

·      The business is adapting capacity and continues to execute its
planned structural cost reductions of c.£3m across the Group, which is
progressing in line with management expectations, with actions across supplier
rationalisation, cost of sales and operating overheads.

 

Outlook

The Board anticipates that the Group will deliver revenue and adjusted EBITDA
growth in excess of 5% over FY22 through the implemented price changes,
increased organic activity and strong cost control.  Despite this positive
organic momentum, due to the ongoing reduced levels of volumes in the IT
hardware market, management now expect the Group's adjusted PBT to be below
their previous expectation and in the range of £41-43 million for the year.

 

The Group's half year results will be announced on Wednesday 26(th) July 2023.

 

Charles Bligh, CEO, commented:

 

"We are successfully achieving our plans to implement price increases, execute
cost reduction and provide consistent service delivery. In a challenging
environment, we are continuing to see increased activity across the majority
of our businesses, especially in our Digital and Information Management
Division. Whilst the unprecedented reduction in IT hardware sales is having an
impact on Technology in the short term, overall the Group is on track to
deliver growth in revenue and operating profits for the year and achieve a
further reduction in debt."

 

For further information:

 Restore plc                                           www.restoreplc.com (http://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

 Luke Spells

 Buchanan Communications (PR enquiries)                www.buchanan.uk.com (http://www.buchanan.uk.com)
 Charles Ryland                                        +44 (0) 207 466 5000

 Simon Compton

 

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