Restore Share Discussion Threads

[sphere25] 23/3/2021 10:14

Kept an eye on this one since the results on the 18/03. One of the few companies I had a look at and thought that the market doesn't appeared to have priced in a recovery. Struggling to find value with recent results, even those today. Some look very pricey or at best fully valued.

RST produced resilient results with the cash generation alone this past financial year looking like it could sustain the valuation here:

Market cap @ 360p is £451m
Net cash generated from operations £66.9m vs £71.5m the prior year
Multiple of less than 7

The cash generation clearly showing through well as it has meant the net debt has been chomped into and now down to £22.4m (vs prior amounts of £88.5m and then £66.1m).

With that level of cash generation, surely more acquisitions to follow that could also be the catalyst to cause a more substantial re-rating as they have already made two acquisitions in the high growth technology recycling market since December 2020. They are alluding to some attractive opportunities in the report.

There was also a strong H2 recovery and they are making bullish noises about the future with January and February tracking at 90% of pre-covid levels. They appear to be confident that growth will resume, which the market hasn't got behind at this point in time.

Noted some decent activity here recently, nothing standout. Price is doing nothing at the moment. Valuation is about 30% off the pre-covid levels so clearly alot of apprehension and uncertainty here but is too much risk priced in?

All imo
DYOR

[18bt] 18/3/2021 08:50

Unlike Porsche, this company looks pretty well managed and looks well positioned in the post COVID recovery. If companies are going to down-size their office space, that could generate quite a bit of work. 2021 fwd PER of 15x looks pretty reasonably priced if you think it could grow by a further 15% in 2022. Net borrowing down to c1x EBIT by the end of the year gives room for further add on acquisitions. Wouldn't be surprised if there were further moves into the circular economy as companies further restructure their IT into the cloud post COVID.

[cwa1] 18/3/2021 08:16

OPERATIONAL AND STRATEGIC HIGHLIGHTS

· Strong start to 2020 before a resilient, profitable and cash generative performance in challenging conditions and a strong bounce back in H2

· Highly effective management response to COVID-19 with all businesses fully operational throughout the pandemic

o Restore Records Management continued net box growth of 0.9% with storage income +1.4%

o Restore Digital underlying business strong despite summer exams sessions cancellation

o Restore Datashred impacted in the short term by reduced activity and volumes but paper pricing increased

o Restore Harrow Green performance robust throughout the period with additional office reconfigurations

o Restore Technology acquisition of E-Recycling in Q4, developing scale and capability

· Strategic momentum continues with two further acquisitions in the high growth Technology recycling market completed since December 2020

· Growing pipeline of attractive opportunities capable of further accelerating development

· Strong market positions improved with substantial room to grow; Restore is well positioned for a full recovery and substantial growth

[porsche1945] 17/3/2021 19:14

This share really is a tedious pile of shxt even by U.K. most hated indexes in the world standards.

[thewheeliedealer] 16/3/2021 20:38

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast last week and part of our discussion includes RST which I find quite interesting and it could be well worth buying. As always we also chatted about loads of other Stocks and Ideas for research and a fair bit of educational stuff with regards to Investing and Portfolio Management.

Specific topics in this one include the risks of anonymous Twitter Accounts and the devious tricks the ‘owners’ get up to, and we give examples of our own Trades and how we have Scaled in and Scaled out etc.

Anyway, if you use Youtube, Apple, Audioboom, Overcast, Google+ or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 44) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful, we try to keep them light and they are totally unscripted, with the intent being that it is like you are eavesdropping on us having a chat down the local boozer (we can dream !!).

Cheers, WD
@wheeliedealer

[cwa1] 08/3/2021 08:02

8 March 2021

Restore plc

("Restore" or the "Group" or "Company")

Restore Technology acquisition of The Bookyard Ltd

Restore Technology increases capability in the recycling of Apple products

Restore plc (AIM: RST), the UK market leading document management, commercial relocation and IT recycling business, is pleased to announce that it has acquired 100% of the share capital of The Bookyard Ltd ("The Bookyard"), a leading Apple recycling and spare parts business based in Liverpool, UK.

The Bookyard has grown over the last 15 years to be a leading parts supplier, repair centre and website for refurbished Apple products. The Bookyard also operates two market-leading eCommerce sites, www.mac2cash.com and www.click4mac.com which respectively, offer trade-in and recycle options for Apple products throughout the UK. The acquisition of The Bookyard further strengthens Restore Technology's capability in the growing recycling market for Apple products with businesses.

Apple laptops and PCs represent around 10% of the technology market and this is expected to grow further in the future. This acquisition is an important step in extending the scale, brand awareness and repair and refurbishment expertise at Restore Technology. With unique technology and expertise built over many years, The Bookyard will further improve the Company's momentum with Apple Laptop/PC recycling. The Bookyard is a well invested, profitable and cash generative business and is expected to generate revenues of approximately GBP1.2m per annum.

This acquisition represents another milestone in Restore's strategy for growth via organic expansion, strategic acquisition and margin improvement through synergies and efficiency gains, as outlined in our Capital Markets Day in November 2020.

Charles Bligh, CEO, commented on the acquisition:

"The Bookyard has been on our radar for some time and we are delighted that Nick Gillard and his whole team will be joining Restore Technology. We have achieved considerable growth in our Apple products line over the last few years but the significant brand awareness and expertise that The Bookyard will bring will deliver increasing momentum to Restore Technology in the all-important Apple recycling market."

[porsche1945] 18/2/2021 13:29

Sudden drop, any reason?

[lenzcrafter] 16/2/2021 13:06

Sudden jump. Any decent reason for this today? Not that I'm complaining.

[cwa1] 16/2/2021 11:53

Thanks for flagging that Tole, hopefully the last of the seller as you say. Will be interesting to see what effect this has...

[tole] 16/2/2021 09:43

Last of the seller 765500 sold at 325.

[18bt] 12/2/2021 07:40

I wondering whether Restore might be a long term winner from the change in company's office requirements. There's going to be quite a number who move office in the next few years as they downsize and regionalise office requirements. That always leads to a big clear out of paper of archiving and lots of stuff for secure destruction. That could be quite a lot of incrementatl demand coming in over a 2-3 year period. At least two of the 4 groups I am involved with are going to downsize in London and the South East and one other will move to completely hot desks with little storage, which will require a clear out (and different office furniture). Musing at the moment, but I like companies with secular trends in their favour.

[tole] 11/2/2021 14:07

Bought a few back in here. I had it down as a small retrace gap fill at the 330 level.

[porsche1945] 10/2/2021 09:44

Decent trading stock, buying around 3.30 or lower and selling out each time get a 20pc uplift. It’s listed in basket case U.K. so its never going to do anything stellar but ok for a turn. UK heading for hardcore brexit covid recession which may well hit them too.

[cwa1] 02/2/2021 08:01

Invesco increasing:-

[lenzcrafter] 31/1/2021 22:23

Looks like a good solid share to me. I will be watching from the side lines to start with.

[cwa1] 29/1/2021 08:16

Reasonably upbeat update this morning(though it doesn't appear anyone is interested ;-)):-



Charles Bligh, CEO, commented:

"We started 2020 very strongly and after COVID-19 impacted activity, we quickly shifted the business to focus on three priorities - Customers, Staff and The Bounceback. The entire team worked incredibly hard and I am delighted that over the year customer satisfaction increased across all business units based on surveys and direct customer feedback. As a result, we believe customer churn will be very low and loyalty driving new business will be strong. Staff wellbeing and safety was a top priority and based on the annual employee survey in November we experienced a significant 10% increase in staff engagement. Throughout the year we continued to prioritise decisions based on ensuring that we recover strongly, and we can see these strong green shoots in the H2 results which underpin our confidence for 2021.

We achieved a very strong financial result, in line and in some cases above market expectations, and I am especially pleased that we continued to improve the financial strength of the company with lower net debt over the year. With this strength and our disciplined growth strategy we will remain at the forefront of shaping our markets in the coming years and will deliver a substantial increase in profits and shareholder value."

[tday] 14/1/2021 14:32

I'm all ears.

[cwa1] 13/1/2021 08:57

Took a few more at almost 385 this morning. Intended as a medium/longer term investment. We'll see how it goes, good fortune all.

PS: Anyone else interested here, or am I chatting to myself? ;-)

[cwa1] 12/1/2021 07:34

Interesting but would be helpful if we could be nice if we could get a handle on the cost:-

12 January 2021

Restore plc

("Restore" or the "Group" or "Company")

Restore Technology acquisition of Computer Disposals Ltd

Restore Technology becomes the number one IT recycling business in the UK

Restore plc (AIM: RST), the UK market leading document management, commercial relocation and IT recycling business, is pleased to announce that it acquired 100% of the share capital of Computer Disposals Ltd ("CDL"), a leading IT recycling and asset disposition (ITAD) business based in Runcorn, UK, on 8 January 2021.

Following this acquisition, Restore Technology becomes the number one IT recycling business in the UK market which is large, growing and heavily fragmented. The addition of CDL, together with the Group's acquisition of E-Recycling Limited, previously announced on 2 November 2020, further improves Restore's network coverage, scale and potential for synergy.

This acquisition represents another milestone in Restore's strategy for growth outlined in the Capital Markets Day in November 2020. Restore's strategy is to grow earnings through organic expansion, strategic acquisition and margin improvement through synergies and efficiency gains.

CDL operates from a state-of-the-art facility in Runcorn, Cheshire. This additional facility will provide further capacity for Restore's operations in the North West of England and complements Restore Technology's existing sites in Birmingham, Bedford, Bristol, Portsmouth and Dunsfold.

CDL has an extensive UK wide customer base and operates through both direct relationships and the IT Reseller channel, which represents a key strategic growth area for the business. Key management and over 80 staff will remain in the business which will be integrated into Restore Technology during 2021. CDL is a well invested, highly profitable and cash generative business and is expected to generate revenues of approximately GBP8m and EBIT of more than GBP2m per annum in the medium term.

Charles Bligh, CEO, commented on the acquisition:

"CDL is one of the most respected operators in the market and after several years of discussions we are delighted that they have decided to become part of our fast-growing company. Restore Technology is now comfortably the UK market leader in the recycling of IT assets and with the addition of a major new site in the North West, we have increased our scale and created greater opportunity to grow, both organically and with additional acquisitions in the future."

[cwa1] 16/11/2020 07:51

Not big news but hopefully worth a mention:-

Sustainability industry award win





Restore plc (AIM: RST), the UK market leading document management, commercial relocation and IT recycling business, is pleased to announce that the Group's Datashred business unit has won 'Paper Recycling Business of the Year' at the prestigious Awards for Excellence in Recycling and Waste Management 2020.



The award highlights that Datashred's UK-wide, sector-leading customer service (as per Trustpilot), combined with the communications and detailed reporting, which allows its customers to manage their own sustainability and environmental footprint, have positioned the Group as the best in the sector.



Charles Bligh, CEO, commented:

"I am delighted we have won this prestigious industry award. It highlights the scale and efficiency of Datashred, and the quality of the service we deliver for customers every day. Restore's commitment to sustainability is at the heart of what we do, and it's fantastic to see this recognised by those at the forefront of the UK's recycling industry."

[nw99] 12/11/2020 07:16

Bullish update

[cwa1] 02/11/2020 08:03

Sounds like a sensible enough bolt on acquisition:-

2 November 2020

Restore plc

("Restore" or the "Group" or "Company")

Restore Technology acquisition of E Recycling Limited

Restore plc (AIM: RST), the UK market leading document management, commercial relocation and IT recycling business, is pleased to announce that it acquired 100% of the share capital of E Recycling Limited ("Euro Recycling"), a high security IT Asset Destruction (ITAD) business based in Bristol, UK, on 30(th) October 2020.

Restore Technology, one of Restore's more recently developed business units, has grown rapidly to become one of the largest IT recycling and asset disposal businesses in the UK. The addition of Euro Recycling will enhance further the Group's strong position in this rapidly growing market and will provide increased access to a number of strategic sales channels and strengthen Restore's national coverage for high security asset destruction.

Euro Recycling has a strong mix of strategic IT channel partner relationships and direct to customer contracts and the acquisition is in line with the strategy to grow Restore Technology through evolution of product capability, channel partnerships and provision of consistent and high quality national coverage.

Key management and all the 26 staff are remaining with the business. Euro Recycling is a profitable business and is expected to generate revenues of approximately GBP2.5m per annum. By bringing Euro Recycling into the Group's market leading ITAD platform, the Board sees significant opportunity to accelerate growth.

Charles Bligh, CEO, commented on the acquisition:

"I am delighted with the acquisition of Euro Recycling which complements our existing capabilities in the growing high security IT destruction market. I welcome the team to Restore and with this continuity we will ensure there is a seamless transition for existing customers. Restore Technology is a significant growth driver for the Group, and we look forward to further expansion both organically and with additional acquisitions in the future."

[cwa1] 30/10/2020 07:37

That is certainly quite a substantial increase by Invesco. Wonder from whom they came?

[nw99] 30/10/2020 07:03

Invesco doubled stake