Restore Share Discussion Threads

[riggerbeautz] 23/3/2011 08:19

HJFe think we are getting noticed now lol

[madghaffi] 23/3/2011 08:07

Slightly better than expected full-year results helped Restore climb 4.25p to 36.5p.

Cenkos Securities says management have done a good job so far in restructuring the business.

The current rating of four times current year earnings is too cheap. There is also an £8.5m freehold property sitting on the balance sheet with an estimated market value close to £13.5m, which compares with its market capitalisation of £16m.


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[riggerbeautz] 22/3/2011 19:37

Alternatively to that, Lord A could convert the debt to shares at or around the time of other deals? Don't see him giving these up cheap now the company is profitable.

[hjfe] 22/3/2011 18:49

Another write-up on the wires:

"LONDON (SHARECAST) - AIM-quoted document storage services provider Restore returned to profit in 2010.

Restore, previously known as Mavinwood, reported a small increase in revenues from continuing operations from £27m to £27.7m. There was a dip in revenue from the small document scanning business, which slumped into loss. Elsewhere, revenues edged ahead.

An underlying group pre-tax loss of around £100,000 in 2009 was turned into a £2.7m profit in 2010.

Most of the growth in revenues from the document storage business came from two recent acquisitions but the sharp jump in operating profit from £2.8m to £3.9m was mainly down to cost savings from the integration of past acquisitions.

Datacare, acquired in September, contributed around £500,000 to revenues and £180,000 to operating profit. Formsafe was acquired too late in the year to make a significant contribution. Cost savings should help Datacare to contribute operating profit of more than £500,000 this year and Formsafe, which cost £720,000, to make more than £300,000 operating profit. Those two acquisitions underpin nearly half of Restore's profit improvement expected by house broker Cenkos in 2011.

The scanning business has started 2011 more strongly and should return to profit this year.

Building maintenance business Peter Cox has started a solar installation business and this should help it to build on its revenue and profit.

Geraldton, which is owned by Lord Ashcroft, holds 58% of Restore but further acquisitions should dilute this. Geraldton also has a £2.4m loan due for repayment, including interest, in 2012.

Cenkos forecasts a profit of £4.1m for 2010."

I'm interested in the last comment that Geraldton's holding should be diluted by further aquisitions. I wonder if they already have something in the pipeline?

[hjfe] 22/3/2011 14:11

StockMarketWire.com - UK services group Restore plc, the former Mavinwood, said its adjusted operating profit before exceptional items more than doubled in 2010 as the company returned to overall profitability.

Restore was boosted by a strong performance from its core document storage business.

Revenue from continuing operations rose to £27.7m from £27.0m.

Adjusted operating profit for the year to December was £3.4m, up from £1.5m.

Reported profit before tax was £0.7m, swinging from a previous £7.8m loss.

Adjusted profit before tax was £2.7m versus a £0.1m loss in 2009.

Adjusted EPS was 4.3p versus a previous 1.2p.

Net bank debt was reduced to £10.0m from £11.6m.

During the year Datacare was acquired in September and Formsafe in December.

CEO Charles Skinner said the results reflected objectives set out by the new board to stablilise the group and improve the performance of its operating companies.

'We are now looking to achieve our third goal of growing the group from its current robust base. The two acquisitions made in 2010 should make a strong contribution to this.' At 1:03pm (LON:RST) Restore PLC share price was +4.25p at 36.5p



Story provided by StockMarketWire.com

[riggerbeautz] 22/3/2011 13:50

Decent sized trades creeping in. Expect we might get a write up or two on these results over the next few days and weeks. Value investors ought to like the look of this turnaround on doing any reading.

[fo77y] 22/3/2011 12:07

lol !! Oops !! that's who i meant...Charles Skinner, getting mixed up with NPE who also has a great CEO.

[hjfe] 22/3/2011 11:30

Fo77y,

I agree with you about avoiding the pumpers and dumpers - Restore is too boring for them. Like you I expect a steady rise into the 50s over the next few weeks. I also expect there might be some more news to come during that time - Charles Skinner is certainly not sitting on his hands.

[fo77y] 22/3/2011 11:24

Excellent results !

I'm very happy with the results and agree with positive statements made by the CEO and chairman. Shows that they have every confidence in generating even more profit this year.

These are the facts that confirms what we few on here have believed for a year now, that they have completely turned around the business from a loss maker to a positive forward looking profit maker. Well done steve jenkins, a sterling job thus far, long may it continue.

Agree HJFe, we are serioulsy undervalued at present, but i'm happy staying under the radar of the p&d's and happy to see the share price rise gradually which i fully expect it to within the next few months.

[yoyoy] 22/3/2011 10:16

Cenkos Securities
26-01-11 BUY

2010
£2.60m pbt
4.00p eps

2011
£4.30m pbt
6.80p eps

[riggerbeautz] 22/3/2011 09:00

True the way the under performance was tackled gives a lot of confidence in this relatively new management. So many positives, even in a difficult economic environment, RST is doing well. Don't forget the debt reduction, I expect we might not be far off other news one way or another.

For instance, if you realy wanted to show faith as a director you would buy again at this level, unless of course there may be deals pending? Either way it would be another positive and like I said news one way or another.

[hjfe] 22/3/2011 08:44

Riggerz,

For me in some ways the most pleasing update is the improvement in trading this year at DCS - this is the real barometer of how deep the transformation is. Things will look very different indeed this time next year.

[riggerbeautz] 22/3/2011 08:25

HJFe reading the details core business margins look great, what a turnaround for Peter Cox, even the last 2 months of DCS have improved if you look in detail. So should improve as poor contracts have been ditched. This company is growing a strong business model and not resting on it's laurels in under performing areas.

[hjfe] 22/3/2011 08:19

I expect traders will pick up on this as the day progresses if we start to make the top risers lists. I'll keep an eye on the counter here too!

[riggerbeautz] 22/3/2011 08:15

Now thats a start, can Mr tips.com do an update along a roll up, roll up, profitable company here! Geez this is so under the radar!

[hjfe] 22/3/2011 08:13

Agreed Riggerz - this confirms that the turnaround is well on track and that eps is massively up. This is now so undervalued - 55p is more realistic share price in the short term.

Happy days!

[riggerbeautz] 14/3/2011 14:49

HJFe results will speak for themselves good or bad, expect good myself. Just as you say people get bored and possibly a boring share for many tips.com subscribers (not aimed at Mike - just general observation); so aids those who happily walk the price down ;)

[hjfe] 14/3/2011 14:19

Mike,

Nothing in particular - just general market sentiment and a retrace due to a lack of any news to bring in buyers. There has been some selling too - some people seem to get bored quickly, or think they can make more elsewhere.

I'm not worried at all - patience continues to be the key here. This will recover very quickly when we get some news worth commenting on.....which could be at any time.

This is also a great entry opportunity - unfortunately I have just committed myself with a significant position elsewhere today.......

[miket7] 13/3/2011 21:27

What happened here last week? One minute we're at 39p, the next we're down to 33p. I thought this was expected to be heading in one direction in the anticipation of strong results. Is there something going on that I don't know about?

[hjfe] 11/3/2011 11:47

Disappointing to see the gains since Christmas lost, but this does now present a great buying opportunity below 35p!

Hopefully we will get some news soon.......

[fo77y] 09/3/2011 13:26

Mike, i was hoping it would be around march, but now, i'm not sure when results will be out. Have looked over the previous results dates and they vary, so until be get a 'pre-results' rns, who knows?! It would be nice to get them soon and stop this slight retrace, however, longtermers have nothing to fear.

o/t masurenguy, results out at sc. have browsed over them and posted my 'brief' thoughts.

[miket7] 06/3/2011 16:18

So no news last week? When do we expect to see some news here?

[hjfe] 28/2/2011 16:14

Masurenguy / Riggerz - thanks for clarifying this. Hopefully we'll get notification before too long.

[riggerbeautz] 28/2/2011 16:02

Yes Masurenguy seen those educated slots plenty of times not to be taken in. Even more reliable source is the company itself.