Restore PLC (AIM:RST) saw its shares drop 11% on Monday after the digital and information management services provider reduced its full-year 2023 (FY2023) profit expectations due to reduced levels of volumes in the IT hardware market.
In a trading update ahead of its Annual General Meeting to be held on May 16, 2023, the company said that, despite positive momentum and organic growth, its management has revised their expectation for FY23 adjusted profit before tax to be in the range of £41-43mln for the year.
However, Restore said its board remains confident in achieving revenue and adjusted EBITDA growth in excess of 5% over FY22 and anticipates a reduction in debt. Revenue for the four months ended 30 April 2023 reached £92.8mln, marking a steady increase of approximately 4% compared to the previous year, the company noted.
In the update, Restore CEO Charles Bligh, CEO, commented: "In a challenging environment, we are continuing to see increased activity across the majority of our businesses, especially in our Digital and Information Management Division.
"While the unprecedented reduction in IT hardware sales is having an impact on Technology in the short term, overall the group is on track to deliver growth in revenue and operating profits for the year and achieve a further reduction in debt."
Around 9.30am, Restores shares were 11.2% lower at 261p.