Slide 1: 2023 Half Year Results
2023 Half Year Results
Slide 2: Overview
Overview O Solid revenue performance in the first half • H1 2023 broadly flat on H1 2022 • Good performance in Records Management, Digital recurring income streams and Harrow Green • Offset by weaker performance in Technology and non-recurring contracts in Digital O Adjusted PBT* down 28% • Lower ac
Slide 3: Business unit performance
Business unit performance Records Management O Price increases successfully implemented O Net box growth of 0.4% O BBC and Department for Work and Pensions contracts commenced on time Digital O Income from recurring outsourcing, storage and data support services in line with expectations O Non-recur
Slide 4: Financial Overview
Financial Overview 2023 Half Year Results 4
Slide 5: Consolidated Income Statement
Consolidated Income Statement Income Statement Summary H1 2023 H1 2022** Change O Revenue broadly flat YoY with growth in storage and recurring Revenue (£’m) 139.6 140.3 -0% service income, but contraction in non-recurring streams and trading income Adjusted EBITDA* (£’m) 38.3 40.3 -5% -28% O Adjust
Slide 6: Revenue and Adjusted PBT Bridges
Revenue and Adjusted PBT Bridges Revenue Bridge (£’m) O Revenue broadly flat YoY 3.4 • Good performance in Records Management, principally 140.3 1.9 139.6 0.3 from pricing -5.4 -0.9 • Effect of non-recurring contracts in Digital • Lower recycled asset sales affecting Technology • Increased activity
Slide 7: Divisions – Digital and Information Management
Divisions – Digital and Information Management Revenue H1 2023 H1 2022 Change Revenue mix H1 2023 Records Management (£’m) 59.3 55.9 +6% Digital (£’m) 25.8 31.2 -17% 30% Digital 85.1 87.1 -2% Margin £85.1m Adjusting operating margin* (£’m) 20.9 24.6 -15% 70% Adjusted operating margin % 24.6% 28.2% -
Slide 8: Divisions – Secure Lifecycle Services
Divisions – Secure Lifecycle Services Revenue H1 2023 H1 2022 Change Revenue mix H1 2023 Technology (£’m) 16.3 17.2 -5% Datashred (£’m) 18.6 18.3 +2% 36% 30% Harrow Green Technology Harrow Green (£’m) 19.6 17.7 +11% 54.5 53.2 +2% £54.5m Margin 34% Adjusted operating margin* (£’m) 3.3 5.6 -41% Datash
Slide 9: Cash flow and Leverage
Cash flow and Leverage H1 2023 H1 2022 Cashflow £’m £’m Change O Strong cash generation from operations increasing to £32.5m, Adjusted EBITDA 38.3 40.3 -5% with resulting free cashflow of £14.0m and cash conversion* of 84% Adjusting items (excluding amortisation) (2.2) (0.9) 144% Share-based payment
Slide 10: Balance Sheet
Balance Sheet H1 2023 H1 2022 O Non-cash impairment of intangible assets of £32.5m arising on the Balance Sheet £’m £’m historic acquisition of Datashred from PHS reflects an increase in Non-current assets 469.6 507.9 cost of capital and re-assessment of the long-term paper tonnage, Trade and other
Slide 11: Adjusting items
Adjusting items H1 2023 H1 2022* O Non-cash impairment of £32.5m relating to historic acquisition of £’m £’m Datashred Impairment of intangible assets 32.5 – O Amortisation increased £0.4m primarily as a result of prior Amortisation of intangible assets 6.3 5.9 year acquisition activity and the subs
Slide 12: Business Overview and Revenues
Business Overview and Revenues 2023 Half Year Results 12
Slide 13: Strong and Experienced Leadership
Strong and Experienced Leadership Chair Sharon Baylay-Bell • Transition from Non-Executive Chair to Executive Chair on 4 July 2023 • Fully committed to business stability CEO Jamie Hopkins • Full-time interim with immediate effect from 4 July 2023 • Previous CEO of Workspace Group plc (FTSE 250) • P
Slide 14: Revenues
Revenues 10% (-14)% 5% 34% 24% +11% 26% 53% 20% (-13)% 27% Digital & Secure Information Lifecycle Group Management Services 18% 20% 31% 12% 20% +7% +3% Revenue Storage Income Boxes, online hosting and pallets 4 4 4 Multi year service outsourcing and network Recurring Services 4 4 4 contracts Relocat
Slide 15: Records Management
Records Management Strengths and successes H1 2023 Revenue O High proportion of recurring revenue from storage income and services (c.80%) 21% O 6% increase in revenue from successful price increases O 0.4% net box growth achieved in H1 71% O BBC contract (worth c.£20m over 10 years) 8% £59.3m comme
Slide 16: Digital
Digital Strengths and successes H1 2023 Revenue O Over 60% of revenue is recurring 10% O Broader service offering since EDM acquisition in 2021 51% O Excluding non-recurring contracts, other services traded in line with expectations 39% £25.8m O 233 new deals won and 10 key customer extensions secur
Slide 17: Technology
Technology Strengths and successes H1 2023 Revenue O Strong growth in secure destruction and ‘in life’ end user device services O Consolidation of WEEE recycling activities 56% 44% O Consolidation of operations from Dunsfold to existing sites to reduce capacity £16.3m O Channel partner strategy and
Slide 18: Datashred
Datashred Strengths and successes H1 2023 Revenue O Service activity income increasing (72% of revenue) O Operational efficiency successes with visits per 28% 57% day improving and mileage down O NPS improved from 74 to 76 and excellent £18.6m Trustpilot score of 4.7 ( ) 15% Challenges c.25,000 tonn
Slide 19: Harrow Green
Harrow Green Strengths and successes H1 2023 Revenue O Strong revenue growth despite large MoD relocation contract in comparative 15% O Growth in Life Sciences and Storage revenue 85% O London revenues up 28% with the Regions up 2% £19.6m O Successful price increases in storage and rates cards O Ful
Slide 20: FY23 Outlook Summary
FY23 Outlook Summary O The Board anticipates solid revenue performance for FY23 underpinned by core storage and recurring income O Continuing challenges with non-recurring streams and trading income O Actions being taken to reduce costs by c.£5m in 2023, whilst preserving capability and capacity O A
Slide 21: For more information please visit: www.restoreplc.com
For more information please visit: www.restoreplc.com Please see these short videos below: 7-10 Chandos Street London, W1G 9DQ T: 020 7409 2420 E: info@restoreplc.com W: www.restoreplc.com
Slide 22: Appendix
Appendix 2023 Half Year Results 22
Slide 23: Glossary - Definitions
Glossary - Definitions Term Definition & calculation Adjusted profit before tax Calculated as statutory profit before tax stated before adjusting items (‘Adjusted PBT’) Adjusted operating margin Segmental operating profit before adjusting items Adjusted basic earnings per Calculated as adjusted prof
Slide 24: IDC: Global PC Shipments Continue to Decline in Second Quarter of 2023
IDC: “Global PC Shipments Continue to decline in second quarter of 2023 due to weak demand and shifting budgetary priorities” Top 5 Companies, Worldwide Traditional PC Shipments, Market Share, and Year-Over-Year Growth, Q2 2023 (Preliminary results, shipments are in millions of units) Company 2023 S