LONDON (ShareCast) - (Sharecast News) - Data, information, communications, and assets service provider Restore reported solid first-half financial results on Tuesday, with revenue increasing 15% to £160.1m, primarily driven by acquisitions and the continued strength of recurring storage income in its information management division.
Adjusted operating profit for the six months ended 30 June rose 8% to £25.5m, reflecting an increase in adjusted operating margin to 17.7%, up 80 basis points compared to 16.9% in the same period last year.

The AIM-traded firm said Adjusted profit before tax also grew by 10% to £18m, with adjusted basic earnings per share rising 11% to 10p.

Free cash flow surged 50% to £22.3m, with a cash conversion rate of 117%, up from 84% in the first half of 2024.

The company declared an interim dividend of 2.2p, a 10% increase from the previous year.

Despite those positive results, statutory profit before tax decreased 36% to £5.5m, mainly due to higher acquisition-related costs, which led to a rise in net debt to £120.1m, up 28% from the prior year.

Leverage stood at 1.9x, up from 1.7x in the first half of 2024.

The company continued to make progress on its strategic initiatives, including its ongoing property consolidation programme within the information management division, which had now moved two million boxes, and the successful integration of its digital activities, delivering annualised cost savings exceeding £5m.

Restore's said its recent acquisition of Synertec added a high-growth business stream, complementing four additional bolt-on acquisitions in the shredding and document storage sectors.

"The group made good progress during the first half, continuing to deliver on its strategic priorities and reporting a robust financial performance that reflects the strength of its market positions and recurring revenues," said chief executive Charles Skinner.

"Recent acquisitions, including Synertec, which offers significant growth potential, are trading as anticipated, and we continue to pursue further growth opportunities through additional bolt-on acquisitions.

"Our full-year expectations are unchanged, and we remain confident that the group will achieve its medium-term target of adjusted operating margins of 20% and deliver further value to shareholders."

At 1439 BST, shares in Restore were up 0.14% at 258.35p.

Reporting by Josh White for Sharecast.com.

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