Document and data management company Restore said in an update Thursday that trading for the 10 months ended Oct. 31 was in line with board expectations.
The AIM-listed company said recent trading continued the positive momentum seen in the first half of the year, with continued revenue and revenue expansion.
The organic performance for the second half to date is higher than the same period last year, with acquisitions made over the past 10 months contributing to the “strong” overall performance.
Restore said its revenue rate improved to £ 255million, 19% ahead of pre-Covid-19 levels, with annualized EBITDA tracking to 74million pound sterling.
Margins were as expected, with increased scale and efficiency offsetting inflationary pressures, while business unit performance followed “well” and demonstrated successful strategic progress.
Restore Records Management reaffirmed another year of 1% to 2% box net growth for 2021, while the integration of EDM’s Restore Digital was on track to deliver ‘transformational change’ in terms of capacity and scale, with ‘substantial’ synergy benefits of over £ 2.5m /
The company said Restore Datashred revenue improved to 80% of pre-Covid-19 levels thanks to high paper pricing and a gradual business expansion, with its margin improving thanks to a increased efficiency.
Restore Technology saw strong demand, with increased scale providing an “increase” in margin, while Restore Harrow Green continued to perform well in all regions, with demand in London being described as particularly strong.
The board took note of the recent acquisition of PS Managed Solutions for £ 0.9million, which it described as a paper shredding opportunity that would strengthen its presence in the North East market. ‘England.
He added that the integration of the previously announced acquisition of Document Warehouse UK, a document management company based in the South East of England, is progressing well.
For the 10 months ended October 31, the group acquired seven ‘strategic and high quality’ companies at an investment cost of £ 84.8m, with combined revenue of around £ 46m and a EBITDA of around £ 10m before synergies.
“I am delighted with the organic momentum the company is experiencing and the major contribution we are seeing from the successful acquisitions we have made over the past 10 months,” said CEO Charles Bligh.
“We have invested to create a strong and scalable platform for Restore, which allows us to generate consistent growth and returns. 10 million EBITDA, before taking into account the additional value that we will derive from synergies and the capacity gain that these investments will bring.
At 4:04 p.m. GMT, shares of Restore were up 3.05% to 490.5p.