Restore Company Research (RST)

Restore hosted an investor and analyst site visit last week, with a focus on two of the Group’s growth engines: Restore Technology and Synertec, the recent £33m acquisition. At its core, Restore is a high quality, cash generative business with a significant proportion of recurring revenues. Whilst these are key tenets of the investment case, the site visit provided a reminder of management’s ambition to deliver significant earnings growth over the medium term through a combination of revenue growth and margin accretion. We were left with an increased conviction that the Technology business has been stabilised and refocused to create a platform for profitable growth, whilst Synertec has added a highly complementary offering, under the leadership of an ambitious and dynamic team. Restore’s share price has dipped noticeably in recent weeks for no apparent reason and the shares now trade on just 10x P/E for FY26, which is very low by Restore’s historic standards. Our 400p Fair Value estimate represents an FY26 P/E rating of c.17x, slightly above the Group’s ten-year average rating (16.5x). On FY25 forecasts, a 400p share price equates to a P/E rating of c.19x, falling to c.17x. We remain of the view that Restore is a high quality business with an excellent management team and significant medium term growth prospects.