Restore PLC said on Thursday it expects revenue for this year to remain flat compared to the previous year, citing a slower period of public sector activity linked to the change in government and subsequent uncertainty around the autumn budget.

The Surrey-based provider of data, information and asset management services said that despite the challenging conditions, the company said it remains on track to deliver adjusted pretax profit in line with market expectations of £33.9 million. In 2023, Restore reported an adjusted pretax profit of £30.3 million.

In a trading update for the 10 months to October 31, Restore said cash generation remains strong, with conversion exceeding 80% during the period. Year-end net debt is expected to align with market forecasts of £92.5 million.

The company acknowledged that changes announced in the autumn budget, including higher employer National Insurance contributions and an increase in the national minimum wage, will create cost pressures when they take effect in April. Restore estimates the annual impact at £3 million, with £2.5 million related to national insurance increases, equating to about £1,000 per employee.

Restore said revenue in its Harrow Green business is expected to decline in financial 2024 compared to the prior year, reflecting weaker trading conditions. The company noted progress in its property consolidation programme, with the next phase underway and relocations on track. It added that box storage revenue continues to benefit from index-linked pricing.

Shares in Restore were down 4.0% at 260.75 pence in London on Thursday afternoon.

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