LONDON (ShareCast) - (ShareCast News) - UK office services provider Restore said its core records management business performed steadily during the first six months of the year but technical problems drove its shares down.
Restore acquired Cintas in October last year and it has been focusing in integrating the new business. Excluding Cintas, annualised box growth rose 8%, which was ahead of expectations with strong organic sales.

However, significant technical problems on its Restore Scan business regarding its major seasonal contract resulted in cost-runs.

On the bright side, its UK office relocations business Harrow Green performed in line with forecasts and ended the first half strongly, the company added.

N+1 Singer analysts downgraded the pre-tax profits forecasts by 5% as the update brought "disappointing news of a setback for the scanning business acquired with Cintas last year".

"As a result, in spite of a strong showing from the core document storage business, trading is only broadly in line with expectations," the broker said.

It added the announcement raises some questions over the quality and dependability of ts ancillary services, but decided to retain its forecasts for 2016 and 2017 as it believes the issues will not recur.

Shares fell 6.44% 251.2p on Wednesdaya t 15:23.

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