Restore (RST) Trading Update summary

Trading performance and operational highlights

• Revenue growth driven by increased storage, four acquisitions in Datashred, and improved Technology division profitability.

• Integration of digital scanning and recent acquisitions delivered annualised savings exceeding £5m.

• Sale of Harrow Green for up to £5.5m completed, simplifying the group structure.

• Successful refinancing secured a new £150m revolving credit facility, enhancing balance sheet flexibility.

Financial outlook and guidance

• FY25 adjusted profit before tax for continuing operations expected to exceed market consensus.

• Medium-term adjusted operating margin target of 20% now expected to be exceeded in FY25.

• FY26 adjusted profit before tax also anticipated to be ahead of current market consensus, despite increased business rates and Harrow Green disposal.

• Cash generation remains strong, with conversion above 80% and net debt in line with expectations after M&A activity.

Strategic initiatives and future growth

• Property consolidation program in final phase, with new warehouse leases supporting operational efficiency.

• Synertec and NEC Software acquisitions provide new NHS contract opportunities and growth potential.

• Focus on organic revenue growth in digital scanning, outbound communications, and Technology divisions.

• Management teams strengthened across divisions, positioning for further organic and acquisitive growth.