Restore Share Price (RST)

Positive FY24 outturn, return of strategic M&A - new research note with audio summary: https://www.equitydevelopment.co.uk/research/positive-fy24-outturn-return-of-strategic-ma

Restore’s FY24 results confirm a period of strong delivery against financial and strategic priorities. Group revenue was stable year on year at £275m, and adjusted PBT increased by 14% to £34.4m, a shade ahead of our forecast, driven by good progress on margins. Our underlying forecasts are unchanged, anticipating further progress towards the 20% medium term operating margin target.

Restore has also returned to the acquisition trail this morning with the £33m acquisition of Synertec, a market leading document management business with longstanding relationships in public and commercial sectors.

We upgrade our earnings forecasts by 7% to 8% in FY25/FY26 and see compelling value in Restore’s shares, which now trade on

Restore (AIM: RST), the UK's leading provider of digital and information management and secure lifecycle services, will be hosting an Investor Presentation covering its Full Year results for the period ended 31st December 2024.

The online event will be hosted by Charles Skinner, CEO, and Dan Baker, CFO, and will begin at 11.00am on Friday 21st March.

The online session is open to all existing and potential shareholders and registration is free. Questions can be submitted during the presentation and will be addressed at the end.

Link to register: https://www.equitydevelopment.co.uk/news-and-events/restore-investor-presentation-21march2025

Link to research note: https://www.equitydevelopment.co.uk/research/management-actions-driving-profit-growthmanagement-actions-driving-profit-growth

Restore’s ten-month trading update reiterates profit expectations for both FY24 and FY25. Excellent progress is being made in delivering cost savings and driving profit margins, a clear priority for this management team. This has offset some market softness around the Autumn Budget as well as a £3m headwind for FY25 relating to increases in employer National Insurance Contributions and the National Living Wage. Absent these changes, we believe Restore would have been primed for an earnings upgrade looking into next year.

A recent investor site visit provided a reminder of Restore’s quality, as well as medium term growth ambitions. In our view, this is not yet reflected in an FY25 P/E rating of

Restore held a well-attended investor and analyst site visit last week near Doncaster, taking in the new Markham Vale Records Management facility and a state-of-the-art Datashred facility at South Kirkby. The tours were hosted by local management and followed up by presentations from the Restore executive team.

No new financial information was disclosed, but the visit did provide a clear link between the previously stated Group growth and margin targets and the actions being taken at divisional level, with greater autonomy, to deliver against these stretching targets.

FY24 is important as a first step in the medium-term profit recovery story. We are forecasting double-digit profit growth, following a challenging FY23.

In our view, Restore’s share price does not yet reflect recent progress under the new management team or the upside potential of medium-term targets. We reiterate our 400p Fair Value estimate and look forward to a further update on progress in a scheduled trading update on 21st November.

New note here: https://www.equitydevelopment.co.uk/research/site-visit-highlights-cultural-change-focus-on-growth

Echoing what has already been said, but another director dealing! It's only 4,800 shares which is smaller when compared to the other director dealings but its definitely a positive sign!