Slide 1: Full year results 2024
2024 Full year results Solid. Progress.
Slide 2: Strategic highlights
Strategic highlights Restore * Good progress on our 2024 priorities of improving operating margin, maintaining high cash conversion and cash generation and unleashing the potential of the business units + Integration of Digital and Records Management now largely complete, to form our new Information
Slide 3: Divisional performance
Divisional performance Restore We have reassessed our operating segments and are for the first time presenting our results as four divisions: * Information Management revenue was impacted by a weak performance in the former Digital business. However, the physical storage element of the division cont
Slide 4: Financial overview
Financial overview
Slide 5: Focus on operating margin
Focus on operating margin Restore The following measures have been implemented to improve profitability, with the target of achieving 20% adjusted operating margin in the medium term Revitalisation of businesses through decentralisation Group Right sizing of head office including support functions A
Slide 6: Highlights
Highlights Restore * Revenues of £275.3m (FY23: £277.1m) * Adjusted operating profit* up 10% to £48.8m (FY23: £44.3m), - increasing adjusted operating margin* by 170bps to 177% . 2024 . * i) . Adjusted PBT* up 14% to £34.4m (FY23: £30.3m) £275.3m * Statutory profit before tax of £17.9m (FY23: loss b
Slide 7: Adjusted PBT up 14%
Adjusted PBT up 14° FY23 Information Management Datashred Technology 03 24 Head Office L | - — 17) || (5) 15 a7) 11 (3.4) Pricing Digital Other Activity Net Paper Net Activity Net Activity Net Share Netbank —FY24 integration net (mainly cost price cost cost cost based interest cost Digital) savings
Slide 8: Divisions — Information Management
Divisions — Information Management Restore 2024 2023, Change Revenue (£’m) 1679 170.1 (1%) Adjusting operating profit* (£’m) 45.8 40.9 12% Adjusted operating margin* (%) 27.3% 24.0% 330bps KPI's Boxes under management (‘m) 22 22 - Cloud hosted documents (‘m) 786 769 2% Staff 1,340 1,579 (15%) Sites
Slide 9: Divisions — Datashred
Divisions — Datashred Restore 2024 2023 Change Revenue (£'m) 36.0 35.9 - Adjusting operating profit* (£’m) 3.7 3.41 18% Adjusted operating margin* (%) 10.3% 8.6% 170bps KPI's Tonnes of paper recycled (‘000) 52 52 - Staff 307 304 1% Sites 9 9 = * Highly contracted service revenues with a good proport
Slide 10: Divisions — Harrow Green
Divisions — Harrow Green Restore 2024 2023 Change Revenue (£'m) Bor 40.0 (12%) Adjusting operating profit* (£’m) 19 45 (58%) Adjusted operating margin* (%) 5.4% 11.3% (590bps) KPI's Desks relocated ('000) 349 413 (15%) Staff 344 397 (13%) Sites 8 7 1 * Avery slow office relocations market in 2024 re
Slide 11: Divisions — Technology
Divisions — Technology 2024 2023 Change Revenue (£'m) 36.1 311 16% Adjusting operating profit/(loss)* (£’m) 18 (1.4) 231% Adjusted operating margin* (%) 5.0%. (4.5%) 950bps KPI's Assets processed (‘m) 15 19 (21%) Staff 345 360 (4%) Sites 6 6 = * Significant recovery in sales resulting from a combina
Slide 12: Cash generation continues to be strong
Cash generation continues to be strong Restore 2024 2023 Variance (E'm) (E'm) (E'm) Adjusted EBITDA* 82.7 771 5.6 Adjusting items — excluding amortisation (4.4) (10.8) 64 Share-based payments 15 (0.7) 22 Working capital and other movements (1.7) 13 (3.0) Cash generated from operations 781 66.9 11.2
Slide 13: Adjusting items reduced significantly
Adjusting items reduced significantly Restore 2024 2023 (£'m) (E’m) Amortisation 12.1 12.2 Restructuring and redundancy costs 21 59 Property related costs 15 3.1 Strategic IT reorganisation 08 16 Asset impairments - 363 Acquisition transaction costs - 0.2 Total adjusting items 16.5 59.3 Cash adjusti
Slide 14: Capital allocation priorities
Capital allocation priorities Restore Invest for growth Deliver shareholder returns Invest in the business Target value accretive Maintain a progressive Consider return of where it accelerates acquisitions in our core dividend policy, with surplus capital to progress and will deliver business or adj
Slide 15: Synertec acquisition
Synertec acquisition
Slide 16: Acquisition of Synertec
Acquisition of Synertec Restore The core elements of Synertec are consistent with the Group's activities and provide the opportunity to enhance the Group through inorganic growth Harrow Datashred Technology v v Information Management v v v v v v v v v Predictable and persistent demand IN Leadership
Slide 17: Information on Synertec
Information on Synertec Restore * Acquisition of Synertec for initial cash consideration of £22m, taking on c.£11m of Synertec debt plus deferred cash consideration based on future profits * Synertec is a document management company which is a UK market leader in sending communications electronicall
Slide 18: Strategic rationale for the acquisition
Strategic rationale for the acquisition ° Highly complementary operational fit with the Group's current mailroom activities * Customers map directly onto Restore’s customer base, broadening our offering to both Restore and Synertec customers * Large number of public sector bodies who perform these f
Slide 19: Outlook
Outlook
Slide 20: Business outlook
Business outlook Restore * Recurring revenue streams supplemented by pricing, particularly in Information Management where price increases are CPI/RPI linked across the majority of customers ° Expected above inflationary growth for the Technology business as the trend to outsource lifecycle services
Slide 21: Group outlook
Group outlook Restore * Trading since the start of the year has been good, and we anticipate all of our divisions to deliver an improvement in adjusted operating profit for the full year * Leading market positions and recurring revenues continue to underpin the profitability and cash generation of t
Slide 22: Appendices
Appendices
Slide 23: FY25 modelling assumptions
FY25 modelling assumptions Restore Income statement Cashflow Adjusting items Inflationary increases in box storage revenue continuing to underpin Group performance. Above inflationary growth in the Technology division Continued momentum across the businesses, driven by measures introduced to improve
Slide 24: Glossary
Glossary Term Definition & calculation Adjusted operating profit Calculated as statutory operating profit before adjusting items Net operating profit after tax ("NOPAT") Calculated as adjusted operating profit with a standard tax charge applied. Adjusted Performance Measure ("APM") used for calculat
Slide 25: For more information please visit
For more information please visit: www.restoreplc.com 7-10 Chandos Street, London, W1G 9DQ T: 020 7409 2420 E: info@restoreplc.com