Restore talks up a year of acquisitions

Restore Group was talking up a year of acquisitions in its trading update on Tuesday, ahead of its full-year results to 31 December 2015.

The AIM-listed office services provider said its document management division continued to perform steadily, with its core records management business accounting for the majority of group profit.

Restore said the integration of the Cintas business, acquired in October 2014, was completed during the year with occupancy rates at the combines records management business increasing to more than 90%.

Its most recent acquisition, Wincanton Records Management, was completed in December 2015 with the process of integration now having begun.

The group did warn that the Restore Scan business was recovering from a disappointing start to the year to have a strong order book, and Restore Shred was showing continued organic growth.

Restore's relocations division, primarily comprised of the Harrow Green businesses, delivered good year-on-year growth, it reported.

It pointed to the December acquisition of Diamond Relocations as providing the division with an additional operating base in the South East of England.

The group's IT relocations business, Relocom, was reported to have finished the year strongly, with its IT asset disposal business Restore IT Efficient, and toner cartridge recycling business ITP Group, trading in line with management expectations.

"As expected at the time of acquisition, several acquired businesses have required substantial restructuring and these are now showing a marked improvement in profitability under our ownership", said Restore chief executive Charles Skinner.

"We continue to strengthen our position as a key supplier of services to UK offices and we have an excellent platform for further profitable growth with strong visibility of earnings", he added.

Restore Group's full year result will be released on 10 March 2016.