10th Sep 2014 08:21
LONDON (Alliance News) - UK office services provider Restore PLC Wednesday reported an 83% rise in first-half pretax profit, and said it is confident of further progress in the second half of the year.
In a statement, Restore said it made a GBP3.3 million pretax profit in the six months ended June 30, compared with a GBP1.8 million pretax profit in the corresponding period a year earlier.
Revenue increased by 24% to GBP30.6 million due to a combination of organic growth and the benefits of acquisitions.
Restore said its document management division, consisting of Restore Shred and Restore Scan, continued to trade well, with GBP16.0 million of revenue, with the core records management business accounting for the majority of that figure as the company continued its strategy of consolidating the UK records management industry through acquisition of smaller businesses in the area.
It said Restore Shred showed strong organic growth and expanded its customer base, operating capacity and geographic coverage through the acquisition of Cannon Confidential in May. Restore Scan increased its revenue on a "similar" cost base which led to an increase in profitability, the company added.
Restore said its relocations division delivered a "strong" year-on-year improvement in performance, with GBP14.6 million of revenue in what is seasonally a weaker half. It said the division has benefited from improved market conditions in the UK office removal market and stronger management controls.
Restore added that the smaller business streams within both divisions are now structured to make an improved contribution to the group.
"We will continue to pursue our strategy of organic and acquisitive growth and are well positioned to gain further market share across all of our businesses," Chief Executive Charles Skinner said in a statement.
"We remain confident of making further progress in the second half and our full year expectations are unchanged," Skinner added.
Restore increased its interim dividend to 0.8 pence per share from 0.6p per share.
Restore shares were Wednesday quoted up 0.4% at 227.00p.
By Samuel Agini; [email protected]; @samuelagini
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