Trading Update and CMD

RNS Number : 0440F

Restore PLC

12 November 2020

 

12 November 2020

Restore plc

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

Trading Update and Capital Markets Day

Significant Growth Opportunity

Restore plc (AIM: RST), the UK market leading document management, commercial relocation and IT recycling business, is pleased to provide the following trading update for the ten month period ended 31 October 2020. The Company is today hosting a virtual Capital Markets Day, setting out the Board's growth strategy.

CURRENT TRADING

Further to the third quarter trading update announced on 1 October 2020, the Group provides the following update on trading activity through to the end of October:

-  Overall activity levels in October were in line with the expected improvement in trajectory

-  Cash collection remained strong and we are on track to deliver reduced net debt at year end of £65-69m (pre acquisitions)

-  Building on growth in Q3, net box growth in Records Management continued to be positive in October

-  Restructuring of the business will result in c250 staff leaving the business (during August and to November)

-  Following completion of the planned restructuring, only c7% of staff remain furloughed on the Government's Job Retention Scheme which underlines the strong increase in customer activity levels over the last six months

-  Acquired E Recycling Ltd, a high security IT Asset Destruction (ITAD) business which will further enhance the Group's strong position in the large and rapidly growing IT recycling market

GROWTH STRATEGY

Today's Capital Markets presentation will provide detail of the medium-term strategy of the Group. We see opportunity for sustainable growth in each of the markets in which we operate, delivering enhanced returns, strong cash generation and significant shareholder value creation through three clear drivers:

1)  Organic Growth across all business units and therefore taking market share

2)  Acquisition Growth across 4 of the 5 business units

3)  Margin Expansion with cost efficiencies from the increased scale of the Group

Restore is consistently number 1 or number 2 in the markets we serve, with very good customer retention and highly predictable recurring revenues. The total market size across all our end markets is estimated to be c£1.9bn and with only c11% market share in these highly fragmented markets, there remains significant opportunity to expand our market share.

Charles Bligh, CEO, commented:

"Restore's strategy is to drive significant growth in shareholder value and we have clear priorities to deliver, which I look forward to articulating in more detail later today.

We continue to see good activity levels across all business units and although it is too early to understand the impact of the recently implemented lock-down restrictions across the UK, we anticipate activity levels being similar to those experienced over the last few months. We have maintained strict cost management and I expect to report strong cash generation for the year, with H2 profits larger than H1 profits. Restore's recent acquisition is reflective of the increasing opportunity we see to accelerate our strategic delivery through a disciplined inorganic strategy, and we are well positioned to bounce back strongly in 2021."

Restore plc    www.restoreplc.com  

Charles Bligh, CEO   020 7409 2420

Neil Ritchie, CFO

Peel Hunt LLP  www.peelhunt.com

Mike Bell  020 7418 8900

Ed Allsopp

Buchanan Communications                                              www.buchanan.uk.com  

Charles Ryland  020 7466 5000

Stephanie Watson

Tilly Abraham

 

END

 

 

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