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PHS Data Solutions acquisition buoys Restore’s full-year results

Published: 08:36 09 Mar 2017 GMT

shredded paper
The outlooks looks good as well, with Restore expecting to increase its market share in 2017

Restore Plc (LON:RST) has hailed its £83mln acquisition of PHS Data Solutions last August after reporting a solid set of full-year results for 2016.

The office support services group said PHS had “transformed” its struggling document management business, which saw revenues grow by 65% to £90.1mln (2015: £54.7mln) in the 12 months to 31 December 2016.

That performance was mirrored – albeit not quite as impressively – across the rest of the group, with total revenues up 41% year-on-year to £129.4mln (2015: £91.9mln).

Pre-tax profits also soared by 41% to £23mln from the £16.3mln it posted a year earlier.

“The acquisition of PHS Data Solutions was a key event in the development of our Document Management division. It has transformed our previously sub-scale document shredding business and significantly enhanced our capability in scanning,” said chief executive Charles Skinner.

“Taken together with our existing position in records management, Restore is now established as one of the two UK market leaders in each of our Document Management activities.”

Importantly for investors, Restore is confident that the growth enjoyed over the past year or so will continue, with “attractive” growth opportunities across it various divisions.

Skinner added: “We expect to continue to gain market share from our expanded base in shredding and scanning, both organically and through acquisition.”

As a result of the strong performance and outlook, the London-based firm proposed a final dividend of 2.67p a share. That will take the total dividend for the year to 4p; a 25% increase on the previous year’s offering.

Shares gained 2.5% in early deals on Thursday to trade at 375p.

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