Half Year Trading Update

RNS Number : 6654E

Restore PLC

20 July 2016

 

20 July 2016

Restore plc

Half Year Trading Update

Restore plc ("Restore", the "Company" or "the Group"), the UK office services provider, today issues a trading update for the six months ended 30 June 2016.

Trading in the first six months of 2016 was encouraging and in line with expectations.

Restore's records management business traded well and the integration of Wincanton Records Management ("WRM") continues to proceed to plan. Net box growth was, as expected, below our usual rate of increase, reflecting an anticipated major customer exit from WRM. Margins within the records management business increased during the period in line with our expectations. Restore Scan traded well and its major seasonal contract was executed successfully. Restore Shred traded broadly in line with expectations but continued to lack sufficient scale to make an appropriate contribution to the Group. However, our position in this market segment will be transformed following on from the acquisition also announced today.

Within the Relocation division, Harrow Green performed in line with expectations and enters the second half of the year with a strong order book. Relocom and IT Efficient also performed satisfactorily. ITP Group, our printer cartridge recycling business, experienced weaker trading conditions during the period, reflecting a recent softening in global demand for its product.

The Group's Half Year results will be released on 12 September 2016.

The Board is pleased to announce today that we have agreed to acquire PHS Data Solutions from Personnel Hygiene Services Limited for approximately £83.1 million, financed from funds raised by a placing with certain institutional investors and from existing debt facilities. PHS Data Solutions is the second largest provider of document shredding services in the UK as well as having a significant records management business and a presence in document scanning. Further information on the acquisition and placing are provided in a separate announcement today.

For further information please contact:

Restore plc
Charles Skinner, Chief Executive	07966 234 075
Adam Councell, Group Finance Director	07860 402 434
Cenkos Securities	020 7397 8900
Nicholas Wells
Elizabeth Bowman
FTI Consulting
Nick Hasell	020 3727 1340
Alex Le May

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.

 

END

 

 

TSTVKLFFQDFXBBZ