Restore PLC on Thursday reported that its pretax profit ticked up slightly in 2022 as it felt the impact of higher interest rates and the bite of inflation.
Restore is a London-based provider of digital and information management and lifecycle services.
Restore posted a pretax profit of £23.3 million in 2022, up 1.3% from £23.0 million in 2021. The company said the small rise was reflective of higher amortisation on prior year acquisitions, interest rate increases, property exit charges and IT programme costs.
Adjusted earnings before interest, tax, depreciation and amortisation rose 9.8% to £81.5 million from £74.2 million. Restore said this was achieved despite the headwind of ‘rapidly increasing’ interest costs in the year.
Revenue from continuing operations jumped 19% to £279.0 million from £234.3 million. Organic revenue growth stood at 11%, this was driven by new contracts from customers and taking market share versus inflation related top line growth, Restore said.
Restore said price increases were implemented across all business units during 2022, but noted that cost increased at a slightly faster rate due to inflation. Nonetheless, with the cost actions in the final quarter 2022 and pricing changes in early 2023, it expects impact of this to be broadly neutral in 2023.
Looking forward, Chief Executive Charles Bligh said: ‘Whilst the macro-economic outlook remains uncertain, our markets remain attractive, and our essential services are needed more than ever to help customers reduce their costs while delivering improvements in security and data management.
‘Our focus in H1 is on the basics in the business from price increases, cost reduction plans and consistent service delivery. We have significant acquisition opportunities which we expect will be back end loaded this year going into 2024. Overall, we are confident that FY23 will be another year of good progress.’
The company proposed a final dividend of 4.8 pence. This would take its total dividend for the year to 7.4p, up from 7.2p the year prior.
Shares were up 2.2% at 317.80p on Thursday morning in London.
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