(Sharecast News) - Information and document management company Restore said in a trading update on Wednesday that it generated strong trading momentum across the group through the final quarter, delivering 2021 performance ahead of its previous expectations.
The AIM-traded firm said activity levels continued to grow through the final quarter, with positive organic performance further enhanced by "very strong" commercial execution and ongoing efficiency gains within its operations.
It said the eight acquisitions completed in 2021 were all contributing financially, and were either in line with or ahead of plan, enabling the company to "significantly extend" its geographic footprint and service offering.
Restore said it expected to report "record levels" of revenue and underlying operating profit for the year ended 31 December, as a result of strength in its acquisition strategy, supported by sustained organic momentum.
As a result, the group's annualised revenue run rate had expanded to £255m - an 18% increase over the pre-pandemic period - with profitability showing strong progression in the second half.
Cash generation was also described as "strong", with leverage as at 31 December of around 1.8x EBITDA pre-IFRS 16, in line with the board's expectations.
The group invested £86m on value-accretive acquisitions over the year, in line with its strategy.
To support its long-term strategic objectives, Restore also announced a new, £200m unsecured multicurrency revolving facility agreement on enhanced terms with a syndicate of six lenders, replacing its previous £160m secured revolving facility.
The new facility, substantially increasing its capacity for investment, was for an initial three-year tenor, with an option to extend the term by two further one-year periods at the firm's request, subject to lender consent.
Restore said the facility had financial covenants consistent with the previous facility, and also included an additional £50m uncommitted accordion.
Looking ahead, Restore said it was on track with the strategy it set out at its capital markets event in November, entering 2022 with positive trading momentum.
Trading since the end of 2021 had followed the same positive trajectory seen in December, the board said, with the directors "very confident" in delivering further significant progress in 2022.
"I am delighted with full year results for 2021 which are ahead of the board's expectation and show increasing momentum in the business," said chief executive officer Charles Bligh.
"We finish the year with record financial results and a business that is stronger and more aligned to the future growth opportunities across our markets.
"The critical nature of the services we provide, the recurring and highly cash generative nature of the business model and the strong team we have in place gives a high degree of confidence as we look ahead to more exciting growth in 2022 in line with the ambitious growth objectives I described in the capital markets day last year."
At 1515 GMT, shares in Restore were up 3.8% at 471.25p.
Restore (RST)30 May 2024 13:01