Restore's strong momentum carries into new year
Information management and document service provider Restore said in an update on Friday that trading for the four months ended 30 April was in line with its expectations, as the “strong” second half momentum last year carried into 2022.
The AIM-traded firm, which was holding its annual general meeting, said revenue was 37% ahead of the same period last year, driven by organic growth of 14%, acquisition effects of 18%, and Covid-19 repair of 5%.
Its run-rate revenue expanded to over £265m at the end of the period, from the £255m it reported in January.
Restore said its digital and information management division experienced high organic growth rates through storage expansion and strong demand for integrated services, with Restore Digital winning and executing on major contract wins in the period, including the Scottish Census.
Secure lifecycle services, meanwhile, showed continued revenue momentum with growing underlying demand in Restore Technology, sustained project delivery across the UK from Harrow Green, and growing revenues from Restore Datashred as office activity increased and from strong paper pricing.
Cost inflation was greater than expected, but had largely been mitigated so far through productivity and pricing.
The company’s acquisition strategy progressed in the period, with two transactions completed and £10m of capital deployed to acquire Ultratec, expanding the capability of Restore Technology, together with a small bolt-on in Records Management.
Restore said its pipeline of strategic deals remained “very strong”, with a number of potential acquisitions currently in exclusivity.
“After a record year in 2021, Restore has continued its strong momentum in 2022,” said chief executive officer Charles Bligh.
“Revenue continues to expand and we are hiring staff to support increasing activity levels for the essential services we provide to customers as they also rebound, transform their business and seek to reduce their costs.”
Bligh said the company was continuing to progress its strategic pipeline of acquisition opportunities, and was seeing an increasing number of businesses coming to market, and expected “substantial opportunities” to invest while maintaining a disciplined approach to valuation and integration.
“This combination of strong organic expansion and acquisition driven growth are the foundations of our strategy and we believe will provide strong returns to shareholders over the medium to long term.”
Restore said it would announce its interim results on 28 July.
At 1131 BST, shares in Restore were up 1.15% at 440p.
Reporting by Josh White at Sharecast.com.