Restore (RST) H2 2025 earnings summary

Executive summary

• Achieved strong full-year results for 2025, with significant operational improvements and a well-optimized business model.

• Leadership transition in late 2023 led to restructuring and focus on core strengths, including head office reduction and digital business turnaround.

• Completed seven acquisitions in 2025, including Synertec, and disposed of low-margin Harrow Green to improve earnings visibility.

• Adjusted operating margin rose to 20.8%, surpassing the 20% target.

• Launched a £20m share buyback programme, supported by strong trading and cash generation.

Financial highlights

• Revenue increased 27% year-over-year to £304.7 million, driven mainly by acquisitions.

• Adjusted operating profit up 18% to £55.5m; adjusted PBT up 22% to £40.6m.

• Adjusted basic EPS up 23% to 22.5p; dividend up 19% to 6.9p.

• Free cash flow exceeded £120 million over three years, with £43 million generated in 2025.

• Leverage at year-end was 1.9x EBITDA to net debt, within the target range.

Outlook and guidance

• Focus remains on maintaining and potentially increasing operating margins across all segments.

• Continued growth expected in digital and public sector contracts, with bulk scanning, AI-driven opportunities, and outbound communications.

• Healthy M&A pipeline, with bolt-on acquisitions expected in the £10–15 million range for the coming year.

• Adjusted PBT for 2026 anticipated to be slightly ahead of market expectations.

• Share buyback program of £20 million announced for the next 12 months.