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Restore PLC on Tuesday said recent trading has continued the positive momentum seen through the first half with ‘significant contract wins and expansion in activity levels’.
Restore is a Redhill, England-based document management and IT recycling business.
Shares were down 4.6% at 334.00 pence each on Tuesday morning in London.
For the ten months that ended on October 31, it said revenue has been performing strongly with the second half-to-date well ahead of the same period in 2021.
Earning before interest, tax, depreciation and amortisation also continued to show strong growth despite the macroeconomic pressures of inflation and the uncertain commercial environment.
It added that Restore Technology is also growing strongly albeit ‘at a lower rate than planned due to a slowing in the IT equipment market, associated with current global supply chain issues’.
Chief Executive Officer Charles Bligh said: ‘Restore has achieved strong commercial momentum in 2022 and, whilst the current economic environment creates challenges, we are winning new business and are confident that we will continue to expand in 2023 with organic growth, complementary acquisitions, and a continued focus on costs.’
Looking forward to financial 2023, Restore said the company continues to see substantial growth potential across its organic and acquisition strategies. It expects net boxes under management to continue to grow strongly within the guided range of 1% to 2% for financial 2022 and financial 2023, compared to 1.3% in financial 2021 due to ‘reported new wins and organic growth from existing customers’.
Additionally, it said the acquisition pipeline for the next financial year remains strong with acquisition price levels anticipated to ‘reduce reflecting the macro-economic environment and increasing cost of capital’. The company remains disciplined and focussed on delivering strong returns.
In September, Restore secured its ‘largest ever’ contract win with national broadcaster BBC. Under the agreement, Restore will manage the UK’s national broadcaster’s archive of assets.
In July, Restore had reported a pretax profit of £14.1 million in the half-year to June 30, up 58% from £8.9 million a year ago. Revenue rose by 32% to £140.3 million from £106.1 million.
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