Restore profits blown upwards by TNT acquisition

In its unaudited full-year results for 2018, the office services provider reported revenue of £195.5m, an increase of 14% compared to the year before, driving profit before tax up by 20% to £37.5m.

Revenue from the Document Management division increased by 16% to £147.6m, including an eight-month contribution from TNT which was the "primary driver" of revenue growth according to a statement from the AIM traded company.

Charles Skinner, chief executive of Restore, said: "We are pleased to report another strong performance in 2018, with a ninth successive year of double-digit growth in earnings per share. The acquisition of TNT Business Solutions has provided the group with significant additional growth opportunities, particularly in the public sector, where many entities still undertake records management and other services we provide in-house."

Meanwhile, the Relocation division saw sales from continuing operations increase by £2.8m to £47.9m as Restore Harrow Green achieved a £2.1m revenues increase to £37.6m and double-digit operating margins.

Cash and cash equivalents increased from £10.7m to £11.7m at the end of the year, with the company recommending a final dividend of 4.0p per share, making a total dividend for the year of 6.0p, a 20% year-on-year increase.

Restore also announced that group finance director Adam Councell will leave the company in August to take up the role of finance director of Fuller, Smith & Turner plc, while Charles Bligh will take over the role of chief executive from Charles Skinner at the end of March.

"As I hand over to Charles Bligh after ten years as chief executive, Restore remains well positioned to build upon the gains made in 2018, with the group's broad base of recurring revenues and strong cash generation providing a stable platform for continued growth. Trading since the start of the year has been in line with the board's expectations," said Skinner.

Restore's shares were up 6.58% at 283.50p at 1222 GMT.