Restore profits boosted by improved margins and acquistions

British office services provider Restore saw revenues and profits move ahead in the first half of its trading year thanks, in part, to a good initial contribution from its recent acquisition of TNT Business Solutions.

Restore's group revenues increased 9% to £95.1m, guiding pre-tax profits ahead 13% to £17.3m in the process.

Basic earnings per share improved 10% to 12p.

Document management revenues grew 8% to £69.9m and relocations revenue shot up 14% to £25.2m thanks to an improvement in the unit's operating margin from an increased level of operational efficiency.

Restore noted that TNT Business Solutions, which it acquired in May, performed in line with expectations. Net bank debt ballooned 50% to £115.4m as a result of the TNT acquisition.

Charles Skinner, Restore's chief executive, said: "We are pleased to report another strong first-half performance, particularly in light of the demanding comparator set by our growth in the prior year period."

"We remain focused on realising our targeted operational synergies and the longer-term opportunities that the business provides to expand our presence in the UK public sector, where many entities still undertake records management in-house."

As of 1445 BST, Restore shares had dipped 1.14% to 484.40p.