Restore (RST) H1 2026 earnings summary

Executive summary

• Revenue increased by 21% year-over-year to £175.4m, with growth split between organic and inorganic sources.

• Recurring revenues and strong cash generation, driven by physical box storage and predictable inflows from Datashred, underpin strategic flexibility for acquisitions and capital returns.

• Double-digit organic revenue growth in Information Management Digital Services, Outbound Communications, and Technology, with these segments expected to surpass physical records management and shredding in revenue share in the medium term.

• Four bolt-on acquisitions completed in H1 2026 for £6.0m, with a healthy pipeline of further opportunities.

• Leadership transition planned, with Charles Skinner to become Non-Executive Chair and Dan Baker to become CEO in January 2027.

Financial highlights

• Adjusted operating profit up 19% to £29.9m; adjusted operating margin improved by 50bps to 20.1%.

• Adjusted profit before tax up 23% to £22.3m; adjusted basic EPS up 24% to 12.4p.

• Free cash flow was £21.3m, with a 95% cash conversion rate.

• Net debt at £122.5m with leverage of 1.7x, within target range, despite acquisitions and buybacks.

• Interim dividend up 18% to 2.6p per share; £20m share buyback program underway, with £4.6m purchased in H1.

Outlook and guidance

• All divisions are performing at or above expectations, with confidence in meeting or exceeding full-year market expectations.

• Focus remains on sustaining 20% adjusted operating margin despite mix headwinds from lower margin businesses.

• Growth expected to continue in Information Management Digital Services, Outbound Communications, and Technology, with mid to high single-digit organic growth anticipated over the medium term.