Restore PLC on Tuesday announced a profit warning and said its chief executive has departed with immediate effect.
Shares were down 30% at 160.33 pence each on Tuesday morning in London.
The London-based provider of digital and information management and lifecycle services said Charles Bligh has stood down by ‘mutual consent’.
It added that Senior Independent Director Jamie Hopkins was named interim CEO with immediate effect.
Chair Sharon Baylay-Bell has become executive chair, also with immediate effect.
Additionally, Restore said its technology arm has continued to suffer a ‘reduction in demand for certain service lines’.
As a result, Restore said adjusted pretax profit in 2023 will be lower than the £31 million that is expected. Adjusted pretax profit in 2022 amounted to £41.0 million, so it expects a decline of roughly a quarter or more.
It expects to make cost savings of £4.5 million in 2023, however. Restore said: ‘We continue to focus on structural cost savings in staff and supplier input costs, and these programmes are delivering the targeted results. With actions already taken and further planned steps in early [third quarter] we expect to reduce permanent staff by 230. These roles are across senior managers, sales, support functions and operations.’
Looking ahead, Restore also anticipates to deliver revenue growth for the year underpinned by the core storage and long term contract income that are a central feature of the group’s strength. For 2022, revenue was £279.0 million.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
