Restore PLC Trading Update and CMD (0440F)
November 12 2020 - 1:00AM
UK Regulatory
TIDMRST
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 GBP65-69m (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 cGBP1.9bn 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
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END
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