REG - Restore PLC - Trading update

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RNS Number : 7411K  Restore PLC  09 December 2025

9 December
2025

Restore plc

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

 

Trading update

 

On track to deliver a strong FY25 performance; FY26 outlook raised

 

Restore plc (AIM:RST), the UK's leading provider of secure and sustainable
business services for data, information, communications, and assets, today
issues the following trading update for the 11 months ended 30 November 2025
(the "Period").

 

Information Management

Storage revenues continued to increase in the Period, with inflation-linked
pricing now in place for most of our contracts. We have recently moved to the
final phase of our property consolidation programme, and have taken on two new
leases which will enable its completion. The first is for a warehouse with 0.3
million box capacity in Rainham, very close to our existing 2 million box
capacity warehouse, which has been acquired with the recently completed
bolt-on acquisition of Archive Warehouse, a document storage business. The
second is in Stroud with 0.4 million box capacity adjacent to our existing
Stroud warehouse. Boxes will start to be moved into these sites early next
year.

 

The integration of the digital scanning business into our Information
Management division is now largely complete, with annualised savings in excess
of £5m, roughly twice the original estimate. Following the award by Oxford
University Hospitals of the medical record scanning contract announced at the
half-year, the business has recently been awarded a medical record scanning
contract by North-West London GP Practices, to be delivered in 2026. We have
also recently completed the bolt-on acquisition of a scanning business from
NEC Software, which manages a number of NHS patient record scanning contracts
and mailrooms for local councils.

 

The Synertec acquisition has continued to trade in line with our expectations
and offers significant opportunities for growth. The business has recently
been included on a new four-year NHS Notify framework which will provide
additional volumes from the first half of 2026.

 

Datashred

Increased visit numbers, largely stable paper prices - underpinned by our
hedging of half our volumes - and four acquisitions in 2025 have driven strong
revenue growth in the Period, and profitability has improved in the second
half. The integration of Shred-on-Site and three smaller bolt-on acquisitions
is now substantially complete, with the synergies expected to deliver further
improved profitability for the business in 2026.

 

Technology

The Technology business is now much improved, with leaner operations and a
focus on larger customers who have more uniform and higher quality IT
assets.  We are continuing to see growth as customers return to a more
normalised hardware refresh cycle, particularly through value-added IT
resellers, and increasingly outsourcing more of their IT requirements.
 Divisional profitability is improving and progressing towards our
medium-term target of 15% adjusted operating margin.

 

Harrow Green

The Group has today separately announced the sale of Harrow Green to Pickfords
for a cash consideration of £5.5m, of which £2m is contingent on FY26
performance.

 

Successful refinancing with new £150m facility

The Group has recently completed a refinancing with NatWest, Barclays, Bank of
China, Allied Irish Bank and Virgin Money, entering a new five year Revolving
Credit Facility (RCF) of £150m, with an accordion of £50m. This replaces
the previous RCF which was due to expire in April 2027, providing significant
additional balance sheet flexibility at improved pricing.

 

FY25 outlook

The Group remains on track to deliver a strong performance in FY25, with full
year adjusted profit before tax for continuing operations (i.e. excluding
Harrow Green) expected to be ahead of current market consensus on a continuing
basis.(1) In addition, the Group now expects to exceed its medium-term
adjusted operating margin target of 20% on a continuing operations basis in
FY25.

 

The Group's cash generation remains strong, with conversion in excess of 80%
during the Period, and year-end net debt is expected to be in line with market
expectations when adjusted for M&A activity in the second half of the
year.

 

Impact of the Autumn Budget and FY26 outlook

Given the nature of the Group's property portfolio, the significant increases
in business rates which will take effect from April 2026 will adversely impact
the Group. We estimate the cost of the business rates will increase by around
10%, or £1m on an annualised basis, which will partially offset the actions
taken by management to reduce property costs through our property
consolidation strategy.

 

The Group's actions to improve margins are progressing well and there is
continued positive momentum in our businesses. Additionally, we are now
anticipating good organic revenue growth, particularly in both digital
scanning and outbound communications within Information Management, and
Technology, which should benefit from sector tailwinds.

 

Therefore, despite the approximate annualised £1m increase in business rates
referred to above and the absence of contribution to adjusted profit before
tax from Harrow Green (£2.2m in FY26 consensus adjusted profit before tax),
the strong performance of the core businesses gives us confidence that the
Group will continue to exceed the medium-term adjusted operating margin target
of 20% and that the adjusted profit before tax will be ahead of current market
consensus for FY26(2).

 

Charles Skinner, CEO, commented:

 

"It has been a strategically busy year for Restore, with seven acquisitions
and the disposal of Harrow Green.  With strong management teams now in place
at each of the Group's three divisions, Restore is a simpler and more cohesive
Group. Having set out a medium term target of achieving 20% adjusted operating
margins, we now expect to exceed that target in 2025. The acquisitions made
this year are all integrating well and the Group is well positioned to pursue
opportunities for further growth, both organically and through acquisitions.
We are particularly pleased that Synertec is starting to fulfil its potential
as part of Restore as demonstrated by the recent contract award by NHS Notify.
Accordingly, given the strong performance across our core businesses, our
expectations for the Group's performance in FY26 have increased."

 

 

 

 

1)    As of close of business on 8 December 2025, Company compiled
consensus FY25 Adjusted PBT is £41.2m, ranging from £39.3m to £43.6m. The
average broker estimate for FY25 adjusted PBT for Harrow Green is £1.6m.
Therefore, consensus FY25 Adjusted PBT on a continuing basis is £39.6m.

2)    As of close of business on 8 December 2025, Company compiled
consensus FY26 Adjusted PBT is £46.5m, ranging from £43.1m to £49.0m.

 

 

Cautionary Statement: This announcement contains certain statements,
statistics and projections that are or may be forward-looking. The accuracy
and completeness of all such statements, including, without limitation,
statements regarding the future financial position, strategy, projected costs,
plans, and objectives for the management of future operations of Restore and
its subsidiaries is not warranted or guaranteed. These statements typically
contain words such as 'intends', 'expects', 'anticipated', 'estimates' and
words of similar import. By their nature, forward-looking statements involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future. Although Restore believes that the
expectations will prove to be correct. There are a number of factors, many of
which are beyond the control of Restore, which could cause actual results and
developments to differ materially from those expressed or implied by such
forward-looking statements.

 

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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