15th Sep 2015 06:40
LONDON (Alliance News) - Office services provider Restore PLC on Tuesday said its pretax profit was slightly lower due to acquisition and restructuring costs, but its underlying profit surged higher in line with its revenue and it hiked its interim dividend on confidence its robust performance will continue in the second half.
Restore, which provides document management and office relocation services, said its pretax profit in the six months to the end of June was GBP2.9 million, down from GBP3.3 million a year earlier as the group booked exceptional costs related to acquisitions and redundancies, plus a provision booked against a major contract in its scanning arm which was hit by technical problems.
Stripping out these one-off costs, however, Restore said its adjusted pretax profit was up to GBP7.1 million from GBP5.0 million, driven by a 43% rise in revenue to GBP43.9 million from GBP30.6 million a year earlier.
Revenue in the group's document management business was up by 73% in the half, thanks primarily to the acquisition of Cintas, while relocations revenue rose 11%.
The group said trading in the second half has started well and said it anticipates meeting its expectations for the full year. That prompted it to hike its interim dividend to 1.0 pence per share, up from 0.8p last year.
"We continued to make good operational and financial progress in the first half with records management, the key driver of group performance, benefiting from strong organic box growth and the on-schedule integration of the Cintas business acquired last year. Our relocations division traded well in what is traditionally its seasonally weaker first half, and continued to benefit from improved operational efficiencies and the expansion of our service offering," said Chief Executive Charles Skinner.
By Sam Unsted; [email protected]; @SamUAtAlliance
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