2022 Half Year Results
Strategy Delivering Growth.
Highlights - Strategy delivering organic momentum and acquisition expansion
+32% | +36% |
£140.3m | £21.2m |
Revenue | Adjusted profit |
before tax* |
-11% | +29% |
1.7x | 12.6p |
Leverage* | Adjusted earnings |
per share* |
Highlights
- Strong business momentum and organic expansion resulting from high customer satisfaction and innovation
- Increasing demand and activity expansion continuing from 2021
- Major contract wins in Digital and Information Management
- Substantial evolution of Group's product range in Digital and Technology
- 'Restoring our World' ESG strategy on track
- Excellent progress in acquisition strategy
- Successful integration of prior year acquisitions all on track or ahead of plan
- 2 bolt on acquisitions in Records Management for £0.7m during H1
- Strategic acquisition of Ultratec for an enterprise value of £9.3m in May
- Well developed pipeline of future acquisitions
- Substantial financial growth
- Revenue of £140.3m (+ 32% YoY) from organic growth (+19%) and acquisitions (+13%)
- Strong profit delivery of £21.2m (+36%) with price and productivity mitigation of cost pressures
- Annualised run rate revenue increased to £280m pa
- Strong cash management with leverage reduced to 1.7x with substantial headroom for further investment
- Interim dividend of 2.6p per share declared (FY21: 2.5p)
- Management remain confident the Group will deliver strong growth for FY 22
- Growth strategy on track to double EBITDA to £150m
*See appendix glossary
2022 Half Year Results | 2 |
Delivering the growth strategy
Digital & Information Management |
Strategy |
O Growing through organic |
expansion, strategic acquisition |
and margin enhancement |
Secure Lifecycle Services
through productivity and scale | No.2 | No.1 | |||
Market Position | |||||
O Leading provider of; | |||||
Partial Consolidation | Highly Fragmented | ||||
Market Structure | |||||
1) Digital and Information | |||
Management | Others | ||
Restore | Restore | ||
Digital | |||
Records | |||
2) Secure Lifecycle Services | Others | ||
Management | |||
No. | small | Others | |
large | |||
O Substantial growth in our | 3 & 4 | ||
foundation businesses which | Iron Mountain | ||
deliver essential services | |||
and provide strong recurring | |||
revenues | Strategic Growth Targets | ||
O Last 3 years developed leading | |||
No.1
Extremely Fragmented
Restore |
Technology |
Others |
large |
Others |
small |
No.2
Highly Fragmented
Restore |
Datashred |
Others |
Shred-it |
No.1
Fragmented
Restore |
Harrow |
Green |
Others |
small |
Others |
large |
positions in large growth markets | 2017 | 2018 | ||
in Digital and IT Recycling | ||||
Sustained revenue expansion | £172.0m | £195.5m | ||
through | ||||
• 2-4x scale | Growth | Profitable organic growth | +6.0% | +3.0% |
• Product expansion | Attractive operating margins | 20.2% | 21.6% | |
O On track to double EBITDA to | Consistent EPS Growth | +27% | +12% | |
£150m+ in the medium term | Strong return on invested capital* | 10.2% | 10.0% | |
with many options to build | ||||
Quality | 75% | 70% | ||
further | Strong cash conversion* | |||
Carbon emissions
*Target calculations set out in appendix.
2022 Half Year Results
2019 | 2020 | 2021 | Medium term goal |
£215.6m | £182.7m | £234.3m | c.£450m - £500m |
+3.1% | +1.4% | +5.0% | 4-8+% |
21.0% | 17.4% | 19.7% | >22% |
+9% | (35%) | +55% | 10 - 30% |
11.4% | 7.7% | 10.1% | >11 - 13% |
99% | 87% | 85% | 80-90% |
8,196t | 9,000t | Scope 1 & 2 Net Zero by 2035 |
3
Financial Overview
Strategic investment and strong organic momentum delivering fast growth
2022 Half Year Results | 4 |
Consolidated Income Statement:
Continued strong momentum and increase in scale
Income Statement Summary | H1 2022 | H1 2021 | Change |
Revenue (£'m) | 140.3 | 106.1 | +32% |
Adjusted PBT (£'m)* | 21.2 | 15.6 | +36% |
Statutory PBT (£'m) | 14.1 | 8.9 | +58% |
EBITDA (Post IFRS 16) (£'m)* | 40.3 | 33.2 | +21% |
Adjusted basic EPS (p)* | 12.6 | 9.8 | +29% |
Statuary EPS (p) | 7.5 | 1.5 | +400% |
Dividend per share (p) | 2.6 | 2.5 | +4% |
- Strong revenue expansion to £140.3m (+32% YoY)
- Organic growth +19% YoY driven by strong Digital performance, sustained Records Management growth and increased activity in Datashred
- Acquisition growth +13% YoY from successful integration of prior year investments
- Adjusted profit before tax of £21.2m (+36% YoY)
- Operating margins consistent with prior year at 18.4% with cost inflation largely recovered in price and productivity
- Low level of exceptional and one-off items at £1.2m (H1 21: £1.7m) relating to bank refinancing (£0.3m) and acquisition related restructuring and transaction costs (£0.9m)
- Adjusted EPS increased 29% to 12.6p supporting interim dividend payment of 2.6p (2021: 2.5p)
Group Revenue Momentum (£'m)
140.3 | ||||||
128.2 | ||||||
106.2 | 109.4 | 106.1 | ||||
89.5 | 93.2 | |||||
H1 19 | H2 19 | H1 20 | H2 20 | H1 21 | H2 21 | H1 22 |
Group Margin Growth (£'m)
7.0 | 21.2 | |||||
15.6 | ||||||
(0.6) | 1.6 | |||||
(0.2) | ||||||
(2.2) | ||||||
Adj PBT | Interest | Cost | Pricing | Non cash/ | Underlying | Adj PBT |
H1 2021 | inflation | Accounting | growth | H1 2022 |
*See appendix glossary
2022 Half Year Results | 5 |
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Restore plc published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 09:47:09 UTC.