2021 Full Year Results
Restore is significantly larger and stronger and well positioned for continued expansion in 2022
+28% | +64% |
£234.3m | £38.1m |
Revenue | Adjusted profit |
before tax* |
+0.0% | +55% |
1.8x | 23.2p |
Leverage* | Adjusted basic |
earnings per share*
*See appendix
Business and Strategic Highlights
- Good performance across all business units contributing to growth, with strong underlying organic growth and eight successful acquisitions driving increased scale and capability across the Group
- Exit run rate revenue of £260 million, 21% higher than pre pandemic levels
- Restore Digital's transformative acquisition of EDM in April 2021 doubles exit run rate revenue to £46 million, enhances capability (Cloud, BPO, Software) and delivers scale margin benefit
- Restore Technology completed three strategic acquisitions doubling run rate revenue to £34 million with strong demand and margin momentum building through the year
- Restore Records Management gained further market share with strong organic revenue growth of 5.6%, alongside acquisition revenue growth of 5.9% and COVID-19 repair of 4.2%
- Positive net box growth momentum in line with expectations at 1.3% (2020: 0.9%)
- Property consolidation strategy progressed with new high density storage facilities in Heywood and Sittingbourne
- Restore Datashred continued steady recovery to 84% of pre- pandemic activity levels by Q4, with significant progress in underlying productivity although profit behind 2019 levels
- Restore Harrow Green activity levels strong throughout the UK with a new site in Cambridge addressing the life sciences sector and delivering record profitability
- Development of significant pipeline of further acquisition opportunities across the Group to support the ambitious growth plans
- The Group announced its new ESG strategy, 'Restoring our World' with ambitious targets including our Net Zero commitment by 2035
Financial Highlights
- Revenue up +28% to £234.3 million (2020: £182.7 million) driven by:
- Organic growth +5.0%
- COVID19 repair +5.6%
- In year acquisitions +16.4% plus full year effect of prior year acquisitions +1.2%
- Adjusted profit before taxation up +64% to £38.1 million (2020: £23.2 million) and operating margin increasing from 18.5% in H1 to 20.7% in H2
- Statutory profit before tax up 475% to £23.0 million
- Strategic acquisitions successfully completed totalling £86.3 million during 2021, delivering a post synergy ROIC of 13.0%
- Strong Cash conversion* at 85% with closing net debt at £100.8 million and leverage of 1.8x
- New increased debt facility agreed post year end at enhanced terms, providing further capacity for continued investment
- Proposed final dividend of 4.7 pence, taking total dividend for 2021 to 7.2 pence (2020: nil pence)
2021 Full Year Results
2
Results demonstrate delivery against our ambitious growth strategy to grow revenue to £450-500m and profits >£150m
Revenue growth track record
£450-500m
c.£260m | £278m | £292m | |||||||
215.6 | 234.3 | ||||||||
195.5 | |||||||||
172.0 | 182.7 | ||||||||
129.4 | |||||||||
2016A | 2017A | 2018A | 2019A | 2020A | 2021A | 2021 | 2022* | 2023* | Medium |
Exit run | term target | ||||||||
rate |
Sustained EBITDA generation and high quality margins
£150m+ | ||
c.£85m | ||
48.2 | 70.0 | 74.2 |
3916%.8 | 57.4 | |
.3 | ||
2017-2019 | 2019A | 2020A | 2021A | 2021 | Medium |
Average growth | Exit run rate | term target | |||
Pre-IFRS16** |
5% | 85% | £86.3m | 13.0% |
Organic revenue | Underlying cash | M&A spend 2021 | ROIC on FY 2021 |
growth | conversion | Acquisitions |
- Consensus revenue across the 5 covering analysts representing an organic only plan.
- 2017 - 2019 EBITDA as reported on a pre-IFRS16 basis. 2019 onwards reflects adoption of IFRS16.
2021 Full Year Results | 3 |
Continued execution of the strategy delivers against our targets
Profit Roadmap
Reduce | |||||
Costs | |||||
£800m+ | better for less | ||||
cost | |||||
of revenue to | |||||
consolidate | |||||
c.4-8+% | Margin | ||||
Revenue pa | expansion | ||||
Grow faster | Acquisitions | ||||
than market | |||||
Organic | |||||
2021
Profit
*Target calculations set out in appendix.
2021 Full Year Results
Strategic Growth Targets
2017 | 2018 | 2019 | 2020 | 2021 | Medium Term Targets | ||
Sustained Revenue | 172.0 | 195.5 | 215.6 | 182.7 | 234.3 | c.450-500m | |
Expansion | |||||||
Profitable Organic | +6.0% | +3.0% | +3.1% | +1.4% | +5.0% | 4-8+% | |
Growth | Growth | ||||||
Attractive Operating | 20.2% | 21.6% | 21.0% | 17.4% | 19.7% | >22% | |
Margins | |||||||
Consistent EPS | +27% | +12% | +9% | (35%) | +55% | 10-30% | |
Growth* | |||||||
Strong Return On | 10.2% | 10.0% | 11.4% | 7.7% | 10.1% | >11-13% | |
Quality | Invested Capital* | ||||||
Strong Cash | +75% | +70% | +99% | +87% | +85% | 80-90% | |
Conversion* | |||||||
Carbon Emmissions | 8,196t | 9,000t | Scope 1 & 2 net | ||||
zero by 2035 | |||||||
4
Restructured Divisions aligned for growth
Digital & Information Management | Secure Lifecyle Services | ||||||
Growth trends | Growth trends |
Secure storage | Secure data destruction and recycling |
Flexible working demands | Workplace transformation |
Digitisation | Rising technology lifecycle requirements |
Market size: £800m growing at c.3% | Market size: £1.1b growing at c.4% |
2021 Full Year Results | 5 |
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Restore plc published this content on 16 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 March 2022 09:47:05 UTC.