Restore Raises FY26 Outlook on Strong Core Performance

Restore plc (AIM:RST), the UK's leading provider of secure and sustainable business services, has announced it is on track to deliver a strong FY25 performance and has raised its outlook for FY26, driven by positive momentum in its core businesses.

The company's trading update for the 11 months ended November 30, 2025, highlights significant progress in information management, data shredding, and technology divisions.

Storage revenues within Information Management have continued to rise, bolstered by inflation-linked pricing implemented across most contracts. The final phase of Restore's property consolidation program is underway, with new leases secured in Rainham and Stroud, adding 0.7 million boxes of capacity. These expansions support the integration of Archive Warehouse, a recently acquired document storage business.

The integration of the digital scanning business is nearing completion, generating annualised savings exceeding £5 million, double the initial projection. Recent contract wins include a medical record scanning project for North-West London GP Practices, set to commence in 2026, and the acquisition of a scanning business from NEC Software, which manages NHS patient record scanning contracts.

The Synertec acquisition is performing as expected, with inclusion on a new four-year NHS Notify framework poised to drive additional volumes from H1 2026.

Datashred has experienced robust revenue growth, fueled by increased visit numbers, stable paper prices (supported by volume hedging), and four acquisitions in 2025. The integration of Shred-on-Site and other bolt-on acquisitions is largely complete, expected to further enhance profitability in 2026.

The Technology business has undergone significant improvements, focusing on larger customers and higher-quality IT assets. As hardware refresh cycles normalise, Restore is seeing growth, particularly through value-added IT resellers, improving divisional profitability towards its medium-term target of 15% adjusted operating margin.

Restore has completed the sale of Harrow Green to Pickfords for £5.5 million, with £2 million contingent on FY26 performance. A new £150 million five-year Revolving Credit Facility (RCF) has been secured with NatWest, Barclays, Bank of China, Allied Irish Bank, and Virgin Money, replacing the previous RCF and providing enhanced balance sheet flexibility at improved pricing.

The Group anticipates exceeding its medium-term adjusted operating margin target of 20% for continuing operations in FY25. Cash generation remains strong, with conversion exceeding 80% during the period, and year-end net debt is expected to align with market expectations, adjusted for M&A activity in the second half of the year.

However, increased business rates, effective from April 2026, are expected to cost an additional £1 million annually, partially offsetting the benefits of property consolidation.

Despite this headwind and the absence of contribution from Harrow Green (£2.2m in FY26 consensus adjusted profit before tax), Restore expects to surpass its medium-term adjusted operating margin target and exceed current market consensus for adjusted profit before tax in FY26.

CEO Charles Skinner stated, “It has been a strategically busy year for Restore, with seven acquisitions and the disposal of Harrow Green…Having set out a medium term target of achieving 20% adjusted operating margins, we now expect to exceed that target in 2025.” He further noted the acquisitions are integrating well, positioning the Group for further organic and acquisitive growth.