March 10, 2017
London South East reported on Restore’s results, stating that its acquisitions in the past helped “boost [its] 2016 revenue”, while its “pretax profit ticked up” and it “hiked its dividend 25 percent”. It posted revenue of £129.4 million ($157.3 million/€148.1 million) compared to £91.9 million ($111.7 million/€105.2 million) last year, which drove pre-tax profit up to £7.5 million ($9.1 million/€8.5 million) from £6.1 million ($7.4 million/€6.9 million). Expanding on this, a “large part of the year-on-year revenue increase reflected acquisitions” it made in 2015 and 2016.
The Recycler reported the company bought out empties collector ITP in July 2015, as well as UK document scanning business Crimson UK that August, document shredder Wincanton that November, relocations company Diamond Relocations that December, and PHS Data Solutions in 2016.
The “largest increase” came from its Document Management unit, with revenue growing 65 percent to £90.1 million ($109.5 million/€103.7 million) from £54.7 million ($66.5 million/€62.6 million) “thanks to contributions” from the Wincanton and PHS acquisitions. The Relocation unit saw revenue increase six percent, but “the overall good progress of the division”, particularly the Harrow Green and IT Efficient businesses, was “held back by the underperformance of toner cartridge recycling business” ITP.
Operating margins “remained steady” at 19 percent for 2016, though its “exceptional costs” increased to £10.3 million ($12.5 million/€11.7 million) from £6.4 million ($7.7 million/€7.3 million), including £6.2 million ($7.5 million/€7.1 million) of “restructuring and redundancy costs”. Earlier this year, it said that yearly results were set to be “in line with expectations”, while its acquisitions helped “push Restore higher” in 2016.
Restore’s document management business grew by 73 percent in September 2015, while its half-year results were said to be “broadly in line” with predictions in July that year. Analysts had advised buying shares in Restore in June 2016, though ITP’s Commercial Director Jason Doran left by mutual consent in late May last year.
Charles Skinner, CEO of Restore, commented: “We see scope for continued profitable growth in all of our activities. The growth prospects in our records management business remain attractive. We expect to continue to gain market share from our expanded base in shredding and scanning, both organically and through acquisition. In Relocation, we are focused on delivering further growth in revenue and operating margins.”
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