11th Mar 2015 10:05
LONDON (Alliance News) - Restore PLC Wednesday reported higher pretax profit for 2014, as acquisitions helped drive up revenue 26%, and it said 2015 has also got off to a good start in both its document management and relocations businesses.
The office services company reported a pretax profit of GBP6.1 million for 2014, up from GBP5.0 million in 2013, as revenue rose to GBP67.5 million from GBP53.6 million. Excluding exceptional items, amortisation and share payment charges, pretax profit rose to GBP12.0 million, from GBP10.0 million.
It raised its full-year dividend to 2.4 pence, from 1.9p in 2013.
Revenue in its document management business rose 35% and operating profit was up 12%, while relocations revenue was up 16% and operating profit up by half.
"Our Document Management division is benefiting from improved rates of net box growth. We remain focused on integrating last year's acquisitions and increasing their operating margins towards those of our existing businesses. Our Relocations division continues to benefit from improved market conditions and operational efficiencies, and we are encouraged by its increasing base of recurring revenues," Chief Executive Charles Skinner said.
It completed six acquisitions in 2014, including the UK records management and scanning division of Cintas, and said it would continue its strategy of driving growth both organically and through further acquisitions.
The acquisitions weighed on its operating margin in its document management business and was reflected in the lower operating profit increase for the unit relative to revenue growth.
"The decline in operating margin is largely attributable to the acquisition of businesses, particularly Cintas and Cannon Confidential, whose operating margins were much lower than those achieved in our existing operations - as their integration continues their operating margins are being significantly improved," it said.
It said 2015 had started satisfactorily, with a continuation of the new box intake improvements it saw towards the end of 2014 in the document management division, and its main Harrow Green relocations business reporting strong year-on-year growth in revene, particularly in London.
"Our principal near-term focus in 2015 is to integrate into the group the acquisitions made in 2014 and to drive operating margins in the integrated businesses towards those we have historically achieved. We are making good progress in this and we are realising the efficiencies anticipated at the time of acquisition. At the same time, our established businesses continue to trade strongly," it said.
Still, Restore shares were down 1.0% at 265.45 pence Wednesday morning. The stock is up 43.1% over the past 52 weeks.
By Steve McGrath; [email protected]; @stevemcgrath1
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