Restore Share Discussion Threads

[cwa1] 27/7/2021 06:35

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.

Sounds like a bullish, defence type announcement to me! They say this about the offer:-

On 22 July 2021, Marlowe plc (Marlowe) announced a possible non-binding offer for the Group. Prior to this, the Group had received two unsolicited, highly conditional, non-binding proposals from Marlowe, both of which were unanimously rejected by the Board given that it significantly undervalued the Group considering its current and future prospects. In addition, it was concluded that the structure of the proposals was not in the best interest of the Group's shareholders, given the low cash element. The Board remains highly confident in Restore's standalone prospects through its clearly articulated strategy to generate significant shareholder value through sustained organic growth, material margin improvement through scale, synergy and operational efficiency and the substantial acquisition opportunities that exist in the markets in which it operates. Marlowe now has until 19th August to put forward a firm offer for Restore or walk away/confirm it has no intention to make a firm offer. There can be no certainty either that an offer will be made nor as to the terms of any offer, if made. For further details, refer to the Group's Statement re possible offer, which is publicly available on the Group's website.

[cwa1] 22/7/2021 10:26

Value of the offer decreasing as Marlowe share price drifts off..

[dr biotech] 22/7/2021 09:40

As a Marlowe holder I’m not sure it what I want to see. Marlowe is expanding at a decent pace by multiple small bolt-on acquisitions, I’m not really sure why they want to go through a long protracted battle that may just end up costing a lot of management time and bankers fees. Or take in a company of this size with what appears at first glance limited synergies.

Usual board rejection, severely undervalues etc, that’s why all the directors have large personal holdings - or not as is the case. May screw their options as these don’t expire for a while.

[cwa1] 22/7/2021 08:05

Strong rebuttal of the offer from the BOD out now. Significantly undervalues, etc

[18bt] 22/7/2021 06:36

Not a very generous premium - 26%.

[cwa1] 22/7/2021 06:18

Well, well, well...



22 July 2021

Marlowe plc

Possible Offer by Marlowe plc for Restore plc

Marlowe plc ("Marlowe" or, the "Company") announces that it made an approach to the Board of Restore plc ("Restore") regarding a possible offer to acquire all of the issued and to be issued share capital of Restore for 530p per Restore ordinary share (the "Possible Offer"). The combination would create a business of scale delivering a broad spectrum of business-critical services and software to UK organisations, addressing their compliance and information management requirements.

This was the second proposal made by Marlowe to the Restore Board. Both proposals were made over the last few weeks and were rejected.

The terms of the Possible Offer of 530p, if made, would consist of 71p in cash for each Restore share and the remainder in new Marlowe shares. The exchange ratio will be set at the time of the announcement of a firm intention to make an offer, if made.

The terms of the Possible Offer of 530p represent:

-- a premium of approximately 45% to the placing price of 365 pence per Restore share on 30 April 2021;

-- a premium of approximately 42% to the six-month volume-weighted average closing price of 373p per Restore share; and

-- a premium of approximately 26% to yesterday's closing share price of 420p per Restore share.
The Possible Offer values the entire issued and to be issued share capital of Restore at GBP743m on a fully diluted basis. Restore shareholders would own approximately 49% of the combined group and would be major participants in the potential future value creation within the combined group.

Alex Dacre, Chief Executive of Marlowe, commented:

"We believe the combination of Marlowe and Restore is strategically compelling and will deliver value for all shareholders.

Marlowe and Restore share the same corporate DNA and channels to market, and we believe that bringing our businesses together will create a leading business-critical services group delivering a comprehensive range of services and software, spanning the compliance and information management sectors, with an addressable market of c.GBP9bn.

Combining Marlowe and Restore represents a transformational opportunity for our customers and shareholders, reinvigorating the Restore strategy and shareholder returns, deepening and broadening our service offering, and creating a business of scale that will deliver significant further growth".

[cwa1] 13/7/2021 07:15

Nice to see the SP, gently, moving in the right direction, there wasn't a lot to be disheartened about in that last TU IMO

[18bt] 05/7/2021 17:13

Slightly muted share price reaction - a lot was already baked in to forecasts.

[cwa1] 05/7/2021 07:14

Well that's a rather strong update by RSTs standards, can't quite recall anything as upbeat as this for a while:-



rading Update and Confirmation of Dividend



Trading above expectations in Q2



Restore plc (AIM: RST), the UK's leading provider of integrated information and data management services, secure technology recycling, and commercial relocation solutions , today issues a trading update for Q2 2021, ahead of its Half Year results on 27 July 2021.



In addition, as a result of the strong first half performance and continued confidence in the Group's outlook, the Board confirms its intention to reinstate its progressive dividend and pay an interim dividend payment for FY21.





TRADING UPDATE



Further to the announcement on 27 May 2021, Restore is pleased to report that trading continued to strengthen through the first half, with second quarter performance ahead of the Board's previous expectations.

· With the benefit of the increasing activity levels, the accretion from acquisitions made in 2021 and further new business wins, the Group continued its good momentum from Q1 into Q2

· The positive trend is evident across all of the Group's business units, with each showing strong revenue growth in Q2, both sequentially and over prior year

· As a result of this progress, the Group's run rate revenue for the 8 week period since the acquisition of EDM is more than £250m pa (FY20: £182.7m, FY19: £215.6m)

· Underlying cash generation in the first half continued to be strong, with net debt anticipated to be in line with expectations at the half year

The Group has made significant strategic progress during H1 and a solid platform is in place for continued development in H2, with further growth potential from increasing activity levels in the economy, sales expansion and further acquisitions expected to be completed during Q3 and Q4.



The combination of activity recovery, market share gains and focussed acquisitions means that the Group is already emerging from the pandemic as a larger business, with enhanced positions in its key target structural growth markets. In addition, management's focus on operational effectiveness and financial discipline have also created a stronger organisation, capable of generating sustainably higher returns.

[porsche1945] 23/6/2021 07:30

If Questor is punting this, dump it. Seriously, I have traded this when the awful spread is narrower but tbh I doubt this is ever going anywhere much. Questor thought Woodfords Patient Capital was a “ buy “, also Aston Martin, companies my ten year old would know to avoid. Stick to large cap tech denominated in USD.

[18bt] 27/5/2021 06:36

Decent DWP contract. Might also help with staff attrition.

[cwa1] 27/5/2021 06:20

Solid enough update:-

27 May 2021

Restore plc

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

AGM Trading Update

Strong trading momentum and new customer win

Restore plc (AIM: RST), the UK's leading provider of integrated information and data management services, secure technology recycling, and commercial relocation solutions , today issues a trading update ahead of its Annual General Meeting to be held later today.

Trading for the four months to 30 April 2021 (the "Period") was in line with the Board's expectations with activity levels continuing to progressively recover.

-- Activity levels continue to show sustained improvement, with revenue for the Period being approximately 3% ahead of the comparative period for the previous year and approximately 95% of the same pre COVID-19 period during 2019

-- Records Management continues to make strategic progress and is pleased to announce that the Department for Work & Pensions ('DWP') has awarded Restore a document services project of approximately GBP10m over 20 months from June 2021. As part of the service, c95 staff will transfer from the current provider to Restore

-- The Records Management and Digital businesses have both been significantly enhanced by the GBP61m acquisition of Rainbow Holdco Ltd, trading as EDM, on 30 April 2021. Management are well progressed with the integration of EDM and the trading performance of its businesses since ownership has been as expected

-- Integration of the recent Technology acquisitions is also progressing well with revenues for Restore Technology expected to double in 2021 when compared with prior years

-- Restore Datashred remains impacted by lower activity levels, but as the economy opens up, the business is seeing very encouraging demand improvement across all regions, including London. Restore Harrow Green is trading strongly with a good pipeline of projects and office reconfigurations.

The Group's Half Year results will be released on 29 July 2021.

Charles Bligh, CEO, commented:

"Our core business is recovering well with increasing activity across all business units and we continue to win new customers and contracts, whilst now being able to offer an increasing suite of services to existing customers.

We have completed 5 acquisitions in the last 6 months across our Technology, Digital, and Records Management business, welcoming over 500 new staff to the business.

We continue to appraise a growing pipeline of further potential acquisitions, and with our strong financial position, we have the flexibility to respond quickly and execute attractive opportunities which may materialise during the second half of 2021."

[tole] 23/5/2021 06:28

https://www.google.co.uk/amp/s/moneyweek.com/investments/stocks-and-shares/share-tips/603266/share-tips-of-the-week%3fampRestore(The Daily Telegraph) Document management and data specialist Restore "stayed in the black in 2020" and its "sound finances" mean it is "well placed to see through even a bumpy recovery". A high price/earnings ratio "does not entice", but the "efficient integration" of information-management firm EDM and a possible uptick in IT recycling, shredding and office removals as companies reassess their need for office space should give profits a boost. 402p

[cwa1] 11/5/2021 07:25

Questor(Telegraph) share tip this morning...



I don't have access, so if anyone can fill in the blanks please feel free :-)

[cwa1] 10/5/2021 13:29

400p on the bid. I suppose that has to be counted as progress, albeit modest...

[cwa1] 04/5/2021 15:41

Modest director purchase:-

4 May 2021

Restore plc

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

Director/PDMR Shareholding

Restore plc (AIM: RST), announces it has been notified that on 30 April 2021, a person closely associated with Charles Bligh, Chief Executive Officer, purchased a total of 2,217 ordinary shares of 5 pence each in the capital of the Company ("Ordinary Shares").

Following this transaction, Mr Bligh and persons closely associated with, holds a beneficial interest in a total of 31,379 Ordinary Shares.

[cwa1] 30/4/2021 14:51

Market seems to be reasonably content with it...

[cwa1] 30/4/2021 14:50

Restore plc (AIM: RST), a leading UK provider of integrated information and data management services, secure technology recycling and commercial relocation solutions, is pleased to announce the successful completion of the placing announced today by the Company (the "Placing").

A total of 10,958,904 new ordinary shares of 5 pence each in the Company (the "Placing Shares"), representing approximately 8.7 per cent. of the existing issued share capital of the Company, have been placed by Peel Hunt LLP ("Peel Hunt") at a price of 365 pence per Placing Share, raising gross proceeds of approximately GBP40 million. The placing price of 365 pence per Placing Share represents a discount of 5.2 per cent. to the closing price of 385 pence on 29 April 2021.

[sphere25] 30/4/2021 13:17

Mixed feelings here though not overly strong. On one hand, diluting at non-recovery prices when it is evident to see Invesco and Polar Capital have been coming in for shares in size, the price has been making more bullish moves, price held back by the psychological 400p mark and trading (as shown today) continuing to recover.

Ultimately, the above actions would have been enough to clear stale bulls at non-recovery levels and and move nicely through 400p imo, particularly in light of how other lagging shares have eventually moved in this market.

RST did £57.4m EBITDA in 2020 vs £70.0m pre-covid so the EDM recovery EBITDA of around £6.3m isn't massively significant, even if 74% of EDM revenue is from digital solutions and doubles the size of Restore's existing Digital business.

Not a fan of companies diluting at non-recovery levels when it is clear to see progress to recovery levels on fundamentals is being made, but on the flip side it is only 8.7% dilutive with the multiple for EDM expected to fall to approximately 7.5x so not a million miles out of line with RST.

Clearly RST management believe it was strategically important enough to do immediately (without letting the share price recover) as well as going forward, so we'll give them the benefit of the doubt.

All looks very much as you were then (price has barely moved -1.3% at 380p) with digital coming slightly more to the fore.

All imo
DYOR

[cwa1] 30/4/2021 06:43

Biggish acquisition funded by a placing announced:-



Almost 11,000,000 shares at 365p are hoping to be placed

On the acquisition:-

-- The Acquisition is expected to be immediately accretive to underlying EPS in the current financial year ending 31 December 2021 ("FY21"), both pre and post the effects of the Placing

Some trading comment:-

Highlights

-- Following the initial impact of COVID-19 in the first half of 2020, the Group has demonstrated a strong recovery and is focused on accelerating momentum against its stated strategy for growth via organic expansion, strategic acquisition and margin improvement through synergies and efficiency gains

o Trading for Q1 2021 saw a continuation of the strong recovery momentum towards pre-COVID revenue levels, and the Board is confident in the Group's prospects in both the short and longer term

o Full-year trading expectations remain unchanged before taking account of the effects of the Acquisition

[cwa1] 20/4/2021 06:27

Acquisition(my bold)...

20 April 2021

Restore plc

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

Acquisition of 1 Big Data Management Ltd

Restore acquisition of a leading local Records Management business

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 that it has acquired 100% of the share capital of Big Data Management Ltd ("1 Big Data"), a leading high quality records management business based in Tilbury, London.

Established in 1994, 1 Big Data has been securely managing corporate clients' records for over 25 years and is recognised as one of the highest quality operators in the south east of England. The business is expected to bring in revenues of approximately GBP600k per annum from its 160,000 boxes.

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

Charles Bligh, CEO, commented on the acquisition:

"With our growing confidence in the performance of Restore, we have reactivated many conversations with companies aligned to our growth strategy over the last six months and I am delighted we have agreed this acquisition in the Records Management business as it brings over 160,000 additional boxes to the Group. 1 Big Data has a great team and a first-class reputation for service and we intend to continue the good work with its customers, whom we welcome to Restore."

[cwa1] 16/4/2021 09:15

Invesco increase(small) in holding announced

[sphere25] 12/4/2021 13:49

400p being paid now and there continues to be very few shares available to buy. Don't want to get too bullish, but those delayed exchanges mentioned above MIGHT have been the ones to break the camels back at the price points the share has traded in for months.

Are the market makers going to find a seller at the psychological 400p mark or is it going straight through?

All imo
DYOR

[cwa1] 09/4/2021 06:11

Invesco increasing nicely...