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Restore – another tale of questionable exceptional items 

17/09/2018 · Restore PLC (RST) 

Document storage boxes - Restore (AIM:RST) shares
Interim results from the provider of document storage, shredding and office removal services yet again included a host of exceptional costs which shareholders are clearly supposed to ignore. We question how much longer they can get away with this!

Restore (AIM:RST) is yet another so-called ‘Buy and Build’ stock market creation which is focused on delivering value to shareholders, primarily through the acquisition and successful integration of other related businesses, principally in the area of document storage and management.

Management commented on ‘another strong first-half performance”, but it didn’t look terribly strong to us.

The adjusted results obviously present the usual delightful picture with revenue rising 9% to £95.1m, operating profit up 15% to £18.9m and earnings per share up 10% to 12p.

The statutory results show operating profit of a more modest £10.9m, pre-tax profit of £9.3m and basic earnings per share only 6.2p.

We question the justification of several of the ‘adjusting items’ which total a whopping £8.0m and include exceptional items of £4.3m and share based payment charges of £0.5m.

- These exceptional costs are decidedly not exceptional!

Exceptional items included £2.0m of costs in respect of the acquisition of TNT BS, £1.7m of restructuring costs relating to acquisitions…

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