Restore (RST) H1 2025 earnings summary

Executive summary

• Revenue increased 15% year-over-year to £160.1m, driven mainly by acquisitions, especially Synertec, with recurring storage income supporting growth.

• Adjusted operating profit rose 8% to £25.5m, with margin up 80bps to 17.7% and progress toward a 20% target.

• Free cashflow improved to £22.3m, with cash conversion at 117% and leverage at 1.9x due to acquisition-related net debt.

• Robust results despite industry headwinds, with optimism for future growth, strong cash generation, and SBTi approval of Net Zero targets.

• Four bolt-on acquisitions in shredding and document storage, plus the acquisition of Synertec, expanded the business.

Financial highlights

• Revenue up 15% to £160.1m; adjusted operating profit up 8% to £25.5m; adjusted operating margin up 80bps to 17.7%.

• Adjusted profit before tax up 10% to £18.0m; adjusted basic EPS up 11% to 10.0p; interim dividend up 10% to 2.2p.

• Statutory profit before tax fell 36% to £5.5m due to higher adjusting items, mainly amortisation and acquisition costs.

• Net debt increased to £120.1m, with leverage at 1.9x.

• Free cashflow at £22.3m, up 50% from HY24; cash conversion at 117%.

Outlook and guidance

• Physical records management remains a strong profit and cash flow driver, with ongoing margin improvement initiatives and a medium-term target of 20% adjusted operating margin.

• Digital division expected to reach 15%+ margins as integration and cost savings take effect.

• Synertec expected to deliver above-inflation revenue growth; Datashred to benefit from acquisitions.

• DWP mailroom contract to ramp up in H2 and show full-year impact in 2026.

• Full-year performance expectations remain unchanged.