26 January 2022
("Restore" or the "Group" or "Company")
FY21 Trading Update Ahead of Expectation
Restore plc (AIM: RST), the UK's leading provider of integrated information and data management services, secure technology recycling, and commercial relocation solutions, provides the following trading update for the year ended 31 December 2021 ("FY21"), ahead of the publication of Group's full year results on 16 March 2022.
FULL YEAR TRADING UPDATE
The Board is pleased to report that Restore continued to generate strong trading momentum across the Group through the final quarter of the year, delivering FY21 performance ahead of its previous expectations.
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 the Group's operations. The eight acquisitions completed in 2021 are all contributing financially and are either in line with, or ahead of, plan, and furthermore have enabled the business to significantly extend its geographic footprint and service offering.
Restore expects to report record levels of revenue and underlying operating profit for FY21 as a result of this strong execution of the Group's acquisition strategy, supported by sustained organic momentum which underlines the critical nature of the services Restore provides to its customers. The increasing demand for Restore's services and the excellent customer satisfaction ratings the business achieves, continue to secure high customer retention rates and repeat business.
As a result of this positive momentum, the Group's annualised revenue run rate has expanded to £255 million, an 18% increase over the pre-pandemic period, with profitability showing strong progression in H2 as a result of the increased scale, efficiency gains and synergy realisation.
Cash generation continued to be strong with leverage at 31 December 2021 of approximately 1.8x EBITDA (pre IFRS16), in line with the Board's expectations. The Group has invested £86 million in the last 12 months on value accretive acquisitions in line with the strategy to deliver scale and capability with resulting synergy across four of the five business units.
NEW DEBT FACILITIES
As part of establishing a platform to support its long-term strategic objectives, the Group is pleased to announce that it has entered into a new, £200 million unsecured, multicurrency revolving facility agreement ("RCF") on enhanced terms with a syndicate of six lenders, which replaces the Company's previous £160 million secured revolving credit facility.
The new RCF, which substantially increases the Group's funding capacity for investment activity, is for an initial three-year tenor, with an option to extend the term by two further one-year periods at the Company's request, subject to lender consent. The new RCF has financial covenants that are consistent with the previous facility and also includes an additional £50 million uncommitted accordion.
The Group is on track with the stated strategy as set out at the capital markets event in November 2021 and enters 2022 with positive trading momentum, supported by:
· A strong scaleable platform with ESG at its core;
· Underlying organic growth, market share gains and new customer wins secured during 2021;
· Expected market share gains with new organic wins in 2022 from a significant pipeline of customer engagements;
· Ongoing cost reduction programmes and further synergy potential from recent acquisitions;
· The full year benefit of accretive acquisitions made during 2021; and
· A substantial and high-quality acquisition pipeline.
Trading since the end of FY21 has followed the same positive trajectory seen in December and the Board remain very confident in delivering further significant progress in 2022.
Charles Bligh, CEO, commented:
"I am delighted with full year results for 2021 which are ahead of the Board's expectation and show increasing momentum in the business.
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."
Restore plc www.restoreplc.com
Charles Bligh, CEO 020 7409 2420
Neil Ritchie, CFO
Peel Hunt LLP www.peelhunt.com
Mike Bell 020 7418 8900
Buchanan Communications www.buchanan.uk.com
Charles Ryland 020 7466 5000