Turnover for the three months to the end of October climbed around 16% from the quarter to the end of June thanks to increased economic activity among its client base, new business wins and new product launches.
More positive still, third quarter profits were roughly 50% higher than the second quarter thanks to structural cost reductions which in turn drove higher cash flows and boosted the firm’s liquidity. As a result the board confirmed second half earnings would be stronger than the first half, as per its previous guidance.
The document management business, which includes the records management division, Datashred and Restore Digital, saw strong trading across the board with market share gains in storage and a sharp increase in demand for shredding during the quarter.
The Digital business won further contracts to screen medical records, valued at between £6 million and £10 million over the next two years.
Significantly, Restore was also appointed to the NHS framework for scanning and storing GP records which could bring to market ‘projects worth £150 million to £190 million’ over the next three to five years.
The Technology business, which saw a drop in collections of old IT equipment in the second quarter due to lockdown and customers re-using older technology to enable homeworking, saw a ‘significant’ increase in activity and profits in the third quarter.
‘The combination of the continued recovery in activity in our markets, together with the benefit of self-generated growth and improved profitability, has seen group momentum strengthen noticeably in Q3’, commented chief executive Charles Bligh.