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Restore springs back to life

Profits were 50 per cent higher in the third quarter than in the second
Restore springs back to life

Restore’s (RST) revenues surged back during its third quarter, with profits around 50 per cent higher than in the second. Overall sales are now tracking at 80 per cent of the level seen last year, as activity rebounds in the document management specialist’s markets. 

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The records management business, which makes up around half of the company’s top-line, saw its Q3 revenues climb up to around 90 per cent of the total generated in the same period last year. And this trading momentum looks set to continue, supported by several new customer wins and an active pipeline. 

As such, Restore is confident that second half profits will outstrip the first six months of 2020, when sales were squeezed by coronavirus fallout. Indeed, the company now expects that the records management division will reach net box growth of around 1 per cent at the end of 2020. 

Meanwhile, with tight cost management and the rationalisation of sites and staffing, Restore expects to lower costs by £2m during 2021. This should also help to push down net debt, which the company anticipates will sit at around £65-£69m, ex lease liabilities, compared to £89m at the start of the year.