Page 1

27 July 2021 Restore plc ( " Restore " or the " Group " or " Company " ) Half Year Results 2021 A larger , stronger business with accelerating growth momentum Restore plc ( AIM : RST ) , the UK's leading provider of integrated information and data management services , secure technology recycling , and commercial relocation solutions , is pleased to announce its unaudited results for the six months ended 30 June 2021 ( " H1 " or " the period " ) . OVERVIEW The Group achieved a strong performance in H1 ahead of the Board's expectation , with adjusted profit before tax up 56 % , sustained momentum in trading across the entire business and significant progress made on Restore's strategy to grow through organic expansion , strategic acquisition and margin enhancement through synergy and efficiency . Activity levels increased steadily throughout the period and a number of major contract wins reaffirmed Restore's leading position and ability to grow market share still further . Four acquisitions were successfully completed during the period including the substantial acquisition of EDM , a Digital and Document Management business for £ 62.4 million which resulted in the significant expansion of Restore Digital and Restore Records Management , a bolt - on acquisition in Records Management and two acquisitions in Restore Technology , with all contributing to the successful H1 performance . The strong profit achievement was further supported by the realisation of cost and efficiency improvement initiatives , particularly in property and employee costs . The combination of recovering activity in the wider economy , market share gains and focused acquisitions means that the Group is already emerging from the pandemic as a larger and stronger business , with enhanced positions in its key target growth markets . In addition , management's focus on operational effectiveness and financial discipline has also created a more efficient business that is well positioned for future expansion . As a result of this strategic progress , the financial scale of the business has increased with annualised run rate revenues expanding to c . £ 250 million based on performance in May and June 2021 , some 16 % higher than 2019 ( taken as the pre COVID - 19 benchmark ) and profits showing an improving trend from Q1 into Q2 . BUSINESS HIGHLIGHTS • • • • Continued improvement in economic activity across Restore's key markets , with the majority of the business at , or above , pre COVID - 19 activity levels Significant new market opportunities continue to open up for the Group supporting customers on their secure data and digitalisation transitions , together with an increasing focus on creating secure , flexible workspaces that have a lower impact on the environment Records Management revenue growth of 9 % for H1 through sales wins , ' refuse to lose ' approach to customer retention and two acquisitions delivering an overall 9.2 % increase in net box assets under management by the end of the period Restore Digital performed well with strong organic growth and revenues doubling following the acquisition of EDM in April Restore Technology achieved significant strategic progress through capability and scale acquisitions , driving a substantial increase in Relocation division operating margin to 17.4 % in H1 2021 from 4.9 % in H1 2020 . Further strengthening of Executive team with key appointments of Restore Technology Managing Director and Group Property Director • £ 80.9 million in acquisitions during H1 ( £ 71.1 million net of cash acquired ) with healthy pipeline and over 25 ongoing discussions with several deals anticipated to be completed during H2 . FINANCIAL HIGHLIGHTS • H1 Revenue of £ 106.1 million , up 19 % on prior year and ahead of management expectations • • • • • • • H1 Adjusted PBT of £ 15.6 million , up 56 % on prior year with strong sequential momentum , being 18 % higher than H2 2020 Scale of business substantially increased with annualised run rate revenues in excess of £ 250 million ( FY20 £ 182.7 million ) based on performance in May and June 2021 EBITDA increased from £ 13.8 million in Q1 to £ 19.4 million in Q2 and totalled £ 33.2 million for the half compared with £ 27.4 million for H1 2020 Profitability improved strongly through the period , with an operating margin of 14.9 % in Q1 improving to 21.3 % for Q2 making 18.5 % as a whole for H1 2021 which compares to 16.2 % in H1 2020 and 21.5 % in H1 2019 Continued successful progress on efficiency with further site consolidation in Restore Technology and Records Management , staff cost ratios improved and new Group fuel contract implemented Leverage in line with expectation at 1.9x following successful equity raise of £ 40m to support acquisition of EDM and continued strong cash generation despite anticipated working capital investment to support growth Progressive dividend policy reinstated with interim dividend of 2.5 pence per share .