Restore Plc · LSE:RST
Restore — H1 2021 Earnings Presentation
28 slides from Restore's earnings presentation, Jul 27, 2021
Slide 1: Larger. Stronger. Growing. 2021 Half Year Results
Larger. Stronger. Growing. 2021 Half Year Results Ahead of the Board’s expectations
Slide 2: Highlights – Larger, Stronger and Growing: Business Highlights
Highlights – Larger, Stronger and Growing Business Highlights O Continued improvement in economic activity across Restore’s key markets, with the majority of the business at, or above, pre COVID-19 activity levels +19% +52% Significant new market opportunities continue to open up for the Group suppo
Slide 3: Highlights – Larger, Stronger and Growing: Financial Highlights
Highlights – Larger, Stronger and Growing Financial Highlights O H1 Revenue of £106.1 million, up 19% on prior year and ahead of management expectations O H1 Adjusted PBT of £15.6 million, up 56% on prior year with strong sequential momentum, being 18% higher than H2 20 O Scale of business substanti
Slide 4: We have made excellent progress the last 18 months
We have made excellent progress the last 18 months Larger Stronger Growing O Run rate Revenue now at c.£250m* O Significant enhancements to the leadership O Flexible and sustainable working, two key (>16% vs pre COVID-19) team and quality trends growing in prominence are positive for Restore O Quart
Slide 5: Market demand post COVID is favourable
Market demand post COVID is favourable We are embracing two high profile trends which are very favourable to Restore Flexible & working Increases market with Increases demand for Decreases volume of paper Increases demand with Increases demand for un-vendored boxes put digital services with but incr
Slide 6: Financial Review
Financial Review 2021 Half Year Results 5
Slide 7: Consolidated Income statement
Consolidated Income statement H1 2021 H1 2020 Change Change Revenue (£’m) 106.1 89.5 +19% 16.6 Adjusted PBT (£’m)* 15.6 10.0 +56% 5.6 Statutory PBT (£’m) 8.9 (3.1) +387% 12.0 EBITDA* 33.2 27.4 +21% 5.8 Adjusted Earnings Per Share (FD)(p)* 9.4 6.2 +52% 3.2 Interim Dividend Per Share (p) 2.5 0.0 - 2.5
Slide 8: Revenue – Growth and Momentum
Revenue – Growth and Momentum Group Revenue Growth 57.8m 120 48.3m 109.4m 110 106.2m 106.1m 102.8m 100 92.7m 93.2m 89.5m 90 80 Q1 Q2 70 H1 21 60 H1 18 H2 18 H1 19 H2 19 H1 20 H2 20 H1 21 O Group revenue repaired to pre COVID-19 levels O Strong momentum with annualised revenue run rate £250m+* O Q1 2
Slide 9: Revenue – Business Unit Mix
Revenue – Business Unit Mix Business Unit recovery path Revenue – H1 19 to H1 21 120 Restore Technology £109.4m £106.2m £106.1m 6.1 8.5 Restore Harrow Green 100 £93.2m 12.3 £89.5m 19.7 21.9 7.8 7.8 Restore Digital 7.5 7.5 18.1 80 Restore Datashred 11.6 10.9 15.0 15.0 18.3 18.3 14.2 Restore Records M
Slide 10: Divisional Performance
Divisional Performance 47.7m 43.7m 18.1m 106.1m 15.0m 89.5m 12.4m 7.5m 13.8m 14.4m 14.1m 8.9m Records Datashred Digital Harrow Green Tech H1 2021 H1 2020 Management Document Management Relocation Total H1 2021 H1 2020 Change H1 2021 H1 2020 Change H1 2021 H1 2020 Change Revenue (£'m) 75.7 67.0 +13%
Slide 11: Profitability - Efficiency
Profitability - Efficiency People Property Procurement Completion of Groupwide Group Property Director recruited Groupwide fuel procurement contract restructuring programme and leading strategy execution agreed with 100% offset in Q4 20 on carbon toutput Strategic exit of 3 sites in FY20 Higher staf
Slide 12: Adjusting profit items
Adjusting profit items £’m H1 2021 H1 2020 Exceptional items £1.7m primarily relate to £85.4m of Exceptional items (1.7) (0.4) acquisitions over the past 12 months, being £80.9m in Amortisation of intangible assets (5.0) (4.1) H1 21 and £4.5m for Euro last year: Impairment of intangible assets - (7.
Slide 13: Cashflow
Cashflow H1 '21 H1 '20 £’m £’m Change EBITDA 33.2 27.4 +21% O EBITDA providing cash momentum Exceptionals (1.7) (0.4) +325% O Working capital bounce back in H1 as expected and reflects fast Share based payments 0.9 (0.2) (550%) Working capital movements (6.6) 9.6 (169%) growing sales Net cash flows
Slide 14: Balance sheet
Balance sheet H1 2021 H1 2020 Non-current assets 504.2 432.4 O Strong balance sheet with debt to equity ratio of 1.25x (2020: 1.35x) Trade and other current assets 56.3 41.4 Cash and cash equivalents 22.0 28.4 O Increase in non-current assets reflects acquisitions Current Assets 78.3 69.8 O Successf
Slide 15: Business Review
Business Review 2021 Half Year Results 14
Slide 16: Market growth – critical nature of Restore’s services
Market growth – critical nature of Restore’s services Market Strong and Position No.2 No.1 No.2 No.1 No.1 improving Market Size £485m £320m £200-210m £350m £550m £1.9b Market Growth c.1-2% c.4% c.0-1% c.1% c.6% c.3% Market Share 22% 14% 19% 12% 6% c.13% Market Partial Highly Highly Fragmented Extrem
Slide 17: Clear Strategy to deliver significant EPS growth
Clear Strategy to deliver significant EPS growth We have a strategy backed by a detailed plan to deliver long term profitable growth Substantial profitable growth and cash generation Reduce Costs better for less cost c.£800m of revenue to consolidate th w Margin ro Ac expansion ic G Engaged Team 4 o
Slide 18: Strong platform for growth
Strong platform for growth A strong platform for growth with significant changes in the last 2 years Health and Safety Safety metrics improved. O New Head of Risk Enhanced focus O Invest more in each Business Unit O Embedded as part of running the business Strategy Clear strategy with a O Created a
Slide 19: Organic Growth – we are winning market share
Organic Growth – we are winning market share With our market leading positions, strong customer satisfaction we are confident in gaining market share. O Restructuring of sales teams completed in 2020, more telesales, digital demand generation and improved sales cadence O Overall markets are growing
Slide 20: Acquisition – Potential to build significant EBITDA from acquisitions
Acquisition – Potential to build significant EBITDA from acquisitions with a strong balance sheet 1 Strong platform to deliver acquisitions O Highly qualified and dedicated M&A team which has completed £85m of acquisitions in last 12 months O Each Business Unit management team can integrate many acq
Slide 21: Margin Expansion – substantial opportunity to improve our cost base
Margin Expansion – substantial opportunity to improve our cost base each year. Cost Reductions O 8 year property consolidation plan in Records Management O Property consolidation in Records Management O Organic growth means need capacity of c.25m boxes and with O Consolidate suppliers and market tes
Slide 22: Document Management Highlights
Document Management Highlights O Run Rate Rev c.£109m* (> 14% Pre COVID) O Run Rate Rev c.£46.3m*; doubling Pre COVID O Latest quarter revenue up +c.9% on Q1 21. O Net box growth 9.2% run rates Q2 21 run rate tracking at c.70% of Pre COVID O Successful acquisition of EDM, enhancing O Underlying acti
Slide 23: Relocation & IT Recycling Highlights
Relocation & IT Recycling Highlights O Run Rate Rev c.£40.3m* (Close to record O Run Rate Rev c.£26m* benefiting from three FY19) acquisitions in the past 8 months O H1 21 +8% vs H1 19 excluding Pass though O New Managing Director Athena Ainsworth O Activity levels improving: O Collections and Proce
Slide 24: Investment Case is clear and compelling
Investment Case is clear and compelling O Investing in Restore is an investment in a strong ESG company O Leading positions in growth markets O Long standing customer relationships with high levels of customer satisfaction/retention O Business model based on high levels of long term contracted and r
Slide 25: Significant Growth Drivers in the business
Significant Growth Drivers in the business The Group has made significant strategic progress during H1 21 and a very strong platform is in place for continued growth in H2 21, with the following growth drivers in the business: H2 2021 Growth Drivers 2022 Growth Drivers O Sales growth in 2020 O Sales
Slide 26: Outlook is positive for Restore
Outlook is positive for Restore We delivered significant growth and momentum in revenue and profitability between Q1 and Q2 and overall the Board was delighted with the H1 performance which was ahead of expectations. With the increasing economic activity across the UK we have seen demand significant
Slide 27: Response to Marlowe conditional and non-binding proposal
Reponse to Marlowe conditional and non-binding proposal 22 July 2021 - Statement re. rejection of conditional non-binding proposal The Board of Restore plc ("Restore" or the "Company") notes the announcement Restore will announce its half year results on 27 July 2021. In its Trading Update by Marlow
Slide 28: For more information please visit
For more information please visit: To see our operations in action, please click for Video 15/19 Cavendish Place London, W1G 0QE T: 020 7409 2420 E: info@restoreplc.com W: www.restoreplc.com For more information please see www.restoreplc.com