Restore (RST) H1 2025 earnings summary

Executive summary

• Revenue rose 15% year-over-year to £160.1m, driven by acquisitions and recurring storage income in Information Management, with adjusted operating margin reaching 17.7% and progress toward a 20% target.

• Adjusted operating profit increased 8% to £25.5m, adjusted profit before tax up 10% to £18.0m, and adjusted basic EPS up 11% to 10.0p.

• Free cashflow reached £22.3m (up from £14.9m), with cash conversion at 117%.

• Four bolt-on acquisitions and the Synertec acquisition expanded the business and were earnings-accretive.

• SBTi approval of Net Zero targets, supporting ESG credentials and large tender wins.

Financial highlights

• Revenue up 15% to £160.1m, adjusted operating profit up 8% to £25.5m, and 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.

• Net debt at £120.1m, with leverage at 1.9x EBITDA, within the preferred range.

• Cash conversion at 117%, exceeding the 80% target.

• Statutory profit before tax fell 36% to £5.5m due to higher adjusting items.

Outlook and guidance

• Confident in achieving 20% operating margin target in the medium term, with current progress at 17.7%.

• Full-year performance expectations remain unchanged.

• Digital business cost cutting and new wins expected to boost profitability.

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

• Anticipate tailwinds as market headwinds subside over the next 6–18 months.