Restore plc (RST.L) reported a strong trading update for the 11 months to November 30, confirming it is on track for a solid FY25 and has upgraded its FY26 outlook.
The Information Management division continues to grow, with higher storage revenues, progress on property consolidation, and over £5 million in savings from integrating its scanning business. New NHS-related scanning contracts and the acquisition of NEC Software's scanning unit further strengthen the division, while Synertec's inclusion on the NHS Notify framework is expected to boost volumes in 2026.
Datashred delivered strong revenue growth supported by stable paper prices, hedging, and four acquisitions, with integration nearly complete and synergies expected to lift profitability in 2026. The Technology division has improved through leaner operations and a focus on larger IT asset clients, moving toward its 15% margin target. Restore also sold Harrow Green for up to £5.5 million.
The company refinanced with a new £150 million revolving credit facility, adding balance sheet flexibility. For FY25, adjusted profit before tax for continuing operations is expected to exceed market expectations, with operating margins set to surpass the 20 percent target. Cash conversion remains above 80 percent, and year-end net debt should align with forecasts.
For FY26, business rates are set to rise by about £1 million, but strong performance across core divisions, especially scanning, outbound communications, and Technology, is expected to outweigh the impact. Despite losing Harrow Green's FY26 contribution, the group now anticipates adjusted profit before tax will beat current expectations.
CEO Charles Skinner highlighted the year's seven acquisitions and one disposal, noting that the group is now simpler, stronger, and ahead of its margin goals. He said Synertec is beginning to prove its potential, and overall momentum supports a confident outlook for FY26.
RST.L currently trades at £259.25 or 8.02% higher on the LSE.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.