Restore (RST) H2 2025 earnings summary

Executive summary

• Revenue increased 27% year-over-year to £304.7 million, driven mainly by acquisitions and strong trading.

• Operating profit rose 18%, with adjusted operating margin reaching 20.8%, surpassing the 20% target.

• Adjusted EPS grew 23% year-over-year, with strong free cash flow generation of over £120 million in three years.

• Completed seven acquisitions, including Synertec, and disposed of low-margin Harrow Green to improve earnings visibility.

• Launched a £20 million share buyback programme, supported by robust cash generation.

Financial highlights

• Revenue: £304.7 million, up 27% year-over-year.

• Adjusted operating profit up 18% to £55.5 million; adjusted PBT up 22% to £40.6 million.

• Adjusted basic EPS up 23% to 22.5p; dividend up 19% to 6.9p.

• Free cash flow of £42.9 million in the year; £120 million over three years; cash conversion at 103%.

• Net debt increased to £123.8 million with leverage at 1.9x EBITDA to net debt, within target range.

Outlook and guidance

• Continued focus on maintaining and increasing operating margins across all divisions, targeting at or above 20%.

• Expectation of further bolt-on acquisitions, especially in Datashred and Synertec, with £10–15 million earmarked for M&A.

• Digital and technology segments positioned for above-inflation growth, with margin improvement targeted above 15%.

• Adjusted PBT for 2026 anticipated to be slightly ahead of market expectations.

• Share buyback of £20 million announced for the next 12 months.