Restore (RST) H1 2026 earnings summary

Executive summary

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

• Strong recurring revenues and robust cash generation, driven by physical box storage and predictable inflows from Datashred, underpin the business and support 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: Charles Skinner to become Non-Executive Chair, Dan Baker to assume CEO role in January 2027.

Financial highlights

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

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

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

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

• Interim dividend up 18% to 2.6p per share.

Outlook and guidance

• Board confident in delivering adjusted profit before tax for the full year at least in line with market expectations (£47.2m, range £44.9m–£48.2m).

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

• Growth expected to continue in Information Management, Digital Services, Outbound Communications, and Technology.

• Anticipated improvement in paper prices should benefit Datashred in the second half.

• Mid to high single-digit organic growth targeted over the medium term.