13th Mar 2025 12:20
(Alliance News) - Restore PLC on Thursday said it swung to profit from loss in 2024 and hiked its dividend despite a small drop in revenue.
The London-based digital and information management services said it swung to a pretax profit of GBP17.9 million in 2024 from a GBP29.0 million loss in 2023.
Revenue fell 0.6% to GBP275.3 million from GBP277.1 million.
Shares in Restore climbed 7.3% to 228.00 pence in London at midday on Thursday.
Restore said revenue was supported by a high proportion of recurring storage income in Information Management, offset by weak delivery in the former Digital business and a slow market at relocations subsidiary Harrow Green.
Restore proposed a final dividend of 3.8 pence, up from 3.35p in 2023. The total dividend for 2024 increased by 12% to 5.8p from 5.2p.
The firm said "actions to improve profitability" saw its adjusted operating margin increase to 17.7% from 16.0%, while adjusted operating profit grew by 10% to GBP48.8 million from GBP44.3 million.
Cost of sales fell 4.9% to GBP152.8 million from GBP160.7 million.
Restore said trading since the start of the year has been good, and it expects all divisions to report higher adjusted operating profit for the full year.
Chief Executive Officer Charles Skinner said: "We have delivered on our priorities for 2024 with an improvement in adjusted operating margin and continued strong cash generation despite some specific headwinds during the year. There are strong grounds for optimism across all of our divisions and we remain committed to our medium-term target of driving adjusted operating margin to 20%."
The company also said it has bought document management business Synertec Ltd for an initial GBP22 million consideration.
The deal includes further a deferred cash consideration in 2028 and 2029 equal to its profit for those years.
Restore said it expects the acquisition to be "immediately earnings enhancing", as CEO Charles Skinner said the business is "highly complementary to the group's activities and offers significant growth potential".
By Michael Hennessey, Alliance News reporter
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