22nd May 2014 09:50
LONDON (Alliance News) - Restore PLC said Thursday that the group has traded in line with management expectations since the beginning of the year, boosted by growth in its Restore Scan and Shred businesses, and it exchanged contracts to acquire Cannon Confidential in a GBP033,00 cash deal.
In a statement released ahead of its annual general meeting Thursday Chairman, Sir William Wells said, "2014 has started well and that Group trading in the first four months of the year has been encouraging and in line with management's expectations."
On a divisional basis, the Document Management division - Restore's core records management business - continues to perform steadily, operating close to capacity. The firm said it has acquired and developed additional space to accommodate our projected organic growth.
Restore Scan has also had a strong start to the year, said Restore, with profit sharply ahead year-on-year. The Shred business has continued to grow rapidly with annualised growth in turnover currently running in excess of 50%.
The Relocations division, which trades primarily as Harrow Green, has benefited from improved market conditions and lower fixed costs, as expected, said the firm, with Relocom, its IT business trading in line with expectations.
Restore said it has also made a number acquisitions in the last two months, including Magnum Secure and Filebase which will join its Records Management business. In April, the firm acquired an additional 33% stake in Relocom, the UK IT relocation business, taking its overall stake to 83%.
In a separate statement Thursday the company said it has exchanged contracts to acquire Cannon Confidential from OCS Group UK Limited. Restore has purchased the firm for a cash consideration of GBP933,000 on a cash- and debt-free basis, funded from Restore's existing banking facilities.
Completion of the deal is expected June 16, 2014, following staff consultation, said the company.
The Cannon Confidential acquisition will add significant critical mass to Restore Shred, the group's rapidly growing secure shredding and recycling business, said Restore, and extend its geographic coverage, particularly in North West England and Scotland.
Looking ahead the company said it looks forward to making strong progress this year with confidence.
Shares in Restore were trading 0.06% higher at 174.6 pence per share Thursday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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