Slide 1: 2020 Full Year Results
ple Strong. Opportunity. 2020 Full Year Results ©OOLO Datashred on Technology
Slide 2: Resilient performance with reducing debt levels providing foundation for substantial growth
Resilient performance with reducing debt levels providing foundation for substantial growth Operational highlights O Strong start to 2020 before a resilient, profitable and cash generative performance in challenging conditions and a strong bounce back in H2 -15% -8.2p O Highly effective management r
Slide 3: COVID-19 Resilience: A stronger Restore
COVID-19 Resilience: A stronger Restore An unprecedented year… with a resounding response… Our Customers Our People 1 High levels of customer satisfaction 1 COVID-secure facilities & operations 2 Invested in new products/services 2 Resolute workforce across the organisation 3 Taken share through con
Slide 4: Financial Review
Financial Review 2020 Full Year Results 3
Slide 5: Financial Review
Financial Review O Resilient financial performance in challenging year O Strategic progress on cost with 3 sites consolidated and headcount reduction from 2,256 to 1,863 O Strong start in Q1 with peak impact of COVID-19 in Q2 before sustained recovery through H2 O Capacity maintained with scope to a
Slide 6: Consolidated Income Statement
Consolidated Income Statement Revenue (£’m) 2020 2019 Change -15% 215.6 Revenue (£’m) 182.7 215.6 182.7 Adjusted PBT (£’m)* 23.2 35.6 -35% (16%) (13%) Statutory PBT (£’m) 4.0 24.8 -84% EBITDA** 57.4 70.0 -18% Adjusted EBITDA*** 37.4 54.0 -31% Adjusted EPS (p) 15.0 23.2 -35.3% *Adjusted profit before
Slide 7: COVID Financial Impacts
COVID 19 Financial Impacts Revenue Cost Cash O Solid core of recurring income providing O £33m drop in revenue reduced to £13m at O Cash performance strong throughout solid foundation EBITDA through flexibility of cost structure period O Income requiring customer access O Government CJRS utilised to
Slide 8: Document Management
Document Management Revenue (£’m) Revenue 2020 2019 Change Restore Records Management (£’m) 87.6 95.9 -9% 159.5 Restore Datashred (£’m) 28.0 41.0 -32% 134.1 Restore Digital (£’m) 18.5 22.6 -18% -£25.4m 134.1 159.5 -16% Margin Operating Margin 33.2 45.1 -26% Operating Margin % 24.8% 28.3% -352 bp 201
Slide 9: Relocation
Relocation Revenue (£’m) Revenue 2020 2019 Change Restore Harrow Green (£’m) 33.3 41.5 -20% 56.1 Restore Technology (£’m) 15.3 14.6 +5% 48.6 48.6 56.1 -13% -£7.5m Margin Operating Margin 4.0 7.7 -48% Operating Margin % 8.2% 13.7% -550 bp 2019 2020 O Restore Harrow Green – Q2 impact due to lock down
Slide 10: Exceptional Costs
Exceptional Costs Exceptional costs (£’m) 2020 2019 Change 2.7 Acquisition transaction costs 0.1 0.1 - 2.3 Acquisition restructuring costs 0.1 2.3 -96% Restructuring & redundancy costs 1.3 - - -£0.4m Other exceptional 0.8 0.3 167% 2.3 2.7 -15% 2019 2020 O Low exceptional costs in year O Group reorga
Slide 11: Cash Flow (pre IFRS16)
Cash Flow (pre IFRS16) 2020 2019 £’m £’m Change Adjusted EBITDA* 37.4 54.0 -31% O Strong EBITDA to cash conversion Working capital/other 9.1 0.4 +2,187% O Cash collection excellent with debt profile Interest (2.9) (3.1) -6% improved from good to excellent Tax (7.2) (5.7) +26% O Unwind of working cap
Slide 12: Net Debt Reduction
Net Debt Reduction Net debt @ Net debt @ Net debt @ Net debt @ Net debt @ 31 December 30 June 31 December 30 June 31 December 2018 2019 2019 2020 2020 £111.3m £95.0m £88.5m £73.9m £66.1m Leverage 2.1x Leverage 1.8x Leverage 1.6x Leverage 1.7x Leverage 1.8x O Further period of substantial net debt re
Slide 13: Balance Sheet
Balance Sheet 2020 2019 £’m £’m Non-current assets 428.5 449.8 O Strong current ratio of 1.1x (2019: 1.2x) Trade and other current assets 42.4 49.3 O Debtor days improved to c.43 days due to working Cash and cash equivalents 26.4 17.0 capital unwind (2019: c.48 days) Current Assets 68.8 66.3 O High
Slide 14: Financial Summary
Financial Summary O Resilient and profitable financial performance O Strong cash generation and a further period of reduction in net debt O Effective management team in control of tactical profit management O Strategic cost initiatives setting up the business for future margin enhancement O Strong b
Slide 15: Operational Review
Operational Review 2020 Full Year Results 14
Slide 16: Resilient business, underpinned by high quality, long term revenues
Resilient business, underpinned by high quality, long term revenues O Sustained recovery in H2. Activity approaching 90% of pre COVID-19 levels by Q4 Decisive leadership as management navigated through pandemic to optimise bounce back O Operating margin 16% H1 improving to 19% in H2 (2019: 21%) High
Slide 17: Market trends last 40 years… and likely the next 30 years
Market trends last 40 years… and likely the next 30 years Market trends, likely accelerated by COVID-19 are very positive for Restore Digitisation & & Flexible working & Security of data Environmental ‘- & +’ in Records: negative ‘- & +’ in Datashred: negative because organic growth because market g
Slide 18: Clear Strategy to grow in growing markets
Clear Strategy to grow in growing markets Substantial Profitable growth and cash generation Reduce Costs better for less cost £600-700m of revenue to consolidate th w Margin ro Ac expansion ic G Engaged Team 4 of 5 qu c.4% Revenue pa markets Grow faster than Organ Customer market isitio Excellence S
Slide 19: Restore Records Management
Restore Records Management FY 2020 Results Growth Strategy O 0.9% net box increase coupled with 1.4% growth in storage income Organic O Revenues down 9% to £87.6m. Q4 exit returned to 95% of pre-COVID-19 levels O 1-2% Organic box growth O 98% customer retention rate O Hybrid customer offering (Digit
Slide 20: Restore Digital
Restore Digital FY 2020 Results Growth Strategy O Revenues £18.5m (2019: £22.6m), with reduction linked to cancellation of Organic summer exams O Growth generation through: O Underlying business robust, with growth in long term customer relationships – Scale/Digitisation/Preservation and continuatio
Slide 21: Restore Datashred
Restore Datashred FY 2020 Results Growth Strategy O Resilient year impacted by COVID-19 restrictions and non essential office working Organic O £28m Revenue (2019: £41m) with Q2 most significantly affected. Paper volumes O Enhanced range – Launching “work from home” offerings and service visits incr
Slide 22: Restore Harrow Green
Restore Harrow Green FY 2020 Results Growth Strategy O Strong start. Q2 COVID-19 impacted as relocation projects delayed. Significant Organic improvement across H2 O Maintain market leadership and grow share through strong O Revenue £33.3m (2019: £41.5m) with margin growth YoY commercial relocation
Slide 23: Restore Technology
Restore Technology FY 2020 Results Growth Strategy O 5% Revenue growth to £15.3m in spite of delayed infrastructure projects Organic due to COVID-19 O Double digit revenue growth O Businesses likely to accelerate investment to drive agility, flexibility and O Significantly increase channel mix digit
Slide 24: Acquisition Strategy
Acquisition Strategy O 2020 largely impacted by COVID-19. We focused on: 2020 Acquisitions – Business continuity and cash preservation Restore Digital O Complete Scanning Ltd – July 2020 – Unlock operational efficiencies and build towards a strong Provider of Digitisation services bounce back – Enga
Slide 25: Summary and Outlook
Summary and Outlook Summary Outlook O Resilient performance in a challenging year Looking ahead, we anticipate a strong return to our established growth trajectory in 2021 and beyond, based on the continued success of the UK vaccination programme and improving macro- economic conditions. O Excellent
Slide 26: For more information please visit
For more information please visit: Click for videos 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