Focus on strategy sees Restore through third quarter

(Sharecast News) - Document management and business relocation services provider Restore updated the market on its trading for the nine months ended 30 September on Wednesday, reporting that it had continued to deliver on its strategy to create shareholder value through a combination of organic growth, selective acquisitions and further margin expansion.
The AIM-traded firm said trading had continued to perform in line with the board's expectations during the third quarter.

It explained that, further to the net box growth reported in its first half results, its core records management business had continued to show net box growth in line with Restore's expectations.

A new managing director had been appointed to Restore Datashred, with the board reporting that the "robust" operational performance delivered in the first half had continued through the third quarter, although wholesale paper prices remained below prior-year levels.

Restore Harrow Green - the office relocation business - also performed well in the third quarter, led by "strong" delivery in the key London region, with Restore Digital and Restore Technology performing in line with expectations.

The company said its ongoing focus on cash generation meant that leverage continued to decrease year-on-year.

On the acquisition front, the board said it was continuing to see opportunities for selective acquisitions across the markets in which it operated.

During the third quarter, three small acquisitions were made - one in Restore Records Management and two in Restore Technology - both of which would be absorbed into existing facilities, the board said.

"We enter this next stage in Restore's evolution, with each of our businesses performing well and in line with our expectations," said chief executive officer Charles Bligh.

"This provides a strong platform from which we can continue to deliver on our strategy of generating shareholder value through organic growth, selective acquisitions and margin expansion.

"I am pleased to welcome Neil Ritchie, CFO, and Duncan Gooding, managing director of Restore Datashred, to the team."

As at 1321 GMT, shares in Restore were up 0.93% at 413.8p.