**Summary of Restore PLCs Full Year 2025 Results**
**Financial Performance Highlights**
**Revenue Growth** Revenue increased by 27% to £304.7 million, primarily driven by the acquisition of Synertec and six bolt-on acquisitions.
**Adjusted Operating Profit** Adjusted operating profit rose by 18% to £55.5 million, with the adjusted operating margin improving to 20.8%, surpassing the medium-term target of 20%.
**Adjusted Profit Before Tax** Adjusted profit before tax grew by 22% to £40.6 million.
**Statutory Profit Before Tax** Statutory profit before tax decreased by 55% to £7.7 million due to significant acquisition-related costs.
**Net Debt** Net debt increased by 39% to £123.8 million, reflecting the impact of acquisitions.
**Dividend** The proposed final dividend increased by 19% to 6.9p per share.
**Strategic Highlights**
**Acquisitions** Acquired Synertec and six bolt-on acquisitions, expanding capabilities in inbound and outbound communications and strengthening market share in shredding. Two additional bolt-on acquisitions were added in early 2026.
**Disposal of Harrow Green** Disposed of Harrow Green, improving earnings visibility and Group margins, resulting in a loss from discontinued operations of £7.7 million.
**Integration and Consolidation** Completed the integration of digital and physical storage businesses, achieving annualized savings of over £5 million. The property consolidation program is in its final phase, with more than fifteen sites exited.
**Datashred Growth** Strong growth at Datashred, supported by bolt-on acquisitions, operational efficiencies, and a paper price contract.
**Technology Division Transformation** Continued transformation of the Technology division, positioned for double-digit margins in 2026.
**Shareholder Returns**
**Share Buyback** Announced a £20 million share buyback program over the next 12 months.
**Outlook**
**FY26 Expectations** Trading since the start of the year has been strong, with all divisions performing in line with or above expectations. Full-year adjusted profit before tax is expected to be slightly ahead of current market expectations.
**Growth Strategy** Well-positioned to deliver both organic and inorganic growth, with a focus on increasing the scale of the Group and delivering further value to shareholders.
**Key Metrics**
**Adjusted Basic Earnings Per Share** Increased by 23% to 22.5p.
**Cash Conversion** Cash conversion was 103%, with free cash flow of £42.9 million.
**Leverage** Leverage increased to 1.9x, within the target range of 1.5x-2.0x.
**Management Commentary**
**CEO Charles Skinner** Highlighted the achievement of the 20% medium-term margin target, strong cash generation, and the strategic focus on both organic and inorganic growth. Expressed confidence in sustaining adjusted operating margins above 20% and delivering further value to shareholders.
**Conclusion**
Restore PLC demonstrated significant improvement in financial performance, strategic advancements through acquisitions and integrations, and a commitment to shareholder returns. The company is well-positioned for future growth and margin sustainability.
Here is the comparison of financials and debt year on year presented as an HTML table:
**Key Observations:** - **Revenue Growth:** Revenue increased significantly by 27% from £240.0m in 2024 to £304.7m in 2025, primarily driven by acquisitions.
- **Profitability Improvement:** Adjusted operating profit and adjusted profit before tax both increased, by 18% and 22% respectively, reflecting improved operational efficiency and contributions from acquisitions.
- **Margin Expansion:** Adjusted operating margin improved by 130 basis points to 20.8%, surpassing the medium-term target of 20%.
- **Debt Increase:** Net debt increased by 39% to £123.8m due to acquisitions, with leverage rising to 1.9x from 1.6x, still within the target range.
- **Earnings Per Share:** Adjusted basic earnings per share increased by 23% to 22.5p, while statutory basic earnings per share decreased significantly due to acquisition-related costs.
- **Dividend Growth:** Dividend per share increased by 19% to 6.9p, reflecting the company's strong cash generation and commitment to shareholder returns.
