AGM Statement

RNS Number : 8433F

Restore PLC

30 May 2013

 



30 May 2013

Restore plc

AGM Statement

At the Annual General Meeting of Restore plc ("Restore" or "the Group"), to be held today at 2pm, the Chairman, Sir William Wells, will make the following statement:

"I am pleased to report that 2013 has started well and that Group trading in the first four months of the year has been encouraging and in line with management's expectations.

In our Document Management division, the core records management business continues to perform strongly.  The acquisitions made in 2012 have been successfully integrated and the integration of the acquisitions made earlier this year is now underway, including the uplift and relocation of boxes arising from the acquisition of File & Data.  We are currently developing additional space at both our Oxfordshire site and at our freehold underground facility in Wiltshire.

Restore Scan (previously DCS) and Restore Shred, which form part of the Document Management division, continue to benefit from their integration into the division, with many new business opportunities now being generated from other parts of the Group.

Restore IT Efficient, which comprises IT Efficient, the IT asset disposal business we acquired in April, has an excellent customer list and very exciting prospects.  We expect to generate significant sales leads for the business from within the Group's existing customer base.

Our Office Relocation division, which trades primarily as Harrow Green, is showing a strong year-on-year improvement in profitability, benefiting from both the reduction in its cost base and improving market conditions.  Several of our largest customers have significantly increased their activity with us, while a number of major projects, such as the relocation of papers for the British Library and the relocation of the BBC from White City, will contribute to the division's results this year. The integration of Sargents' relocation business into Harrow Green has been completed.

Following the acquisition of Sargents in 2011, the Group was required to service Sargent's largest customer through BGM Group Limited, a move planning business which has recently entered administration.  As a result Restore expects to record a one off exceptional bad debt of up to £800k in relation to BGM in the current financial year. However, we continue to service the large customer but through a financially strong intermediary.

The Group continues to be highly cash generative and we maintain a healthy financial position.  Due to the high visibility of Restore's revenues we look forward with confidence to making further strong progress this year".

For further information please contact:

Restore plc Charles Skinner                Adam Councell	Tel: [phone] Tel: [phone]
Cenkos Securities Nicholas Wells/Adrian Hargrave/ Elizabeth Bowman	Tel: [phone]
FTI Consulting Nick Hasell	Tel: [phone]

 

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