10 March 2016
Restore plc
Disposal of Restore Document Management Ireland Limited
Restore plc ("Restore" or the "Company"), the UK office services provider, today announces that it has entered into a contract to sell Restore Document Management Ireland Limited ("Restore Ireland") to Offsite Archive Storage and Integrated Services (Ireland) Limited for a total cash consideration of €36 million (£27.8 million) with completion expected imminently. Restore Ireland holds the Irish assets of Wincanton Records Management, whose acquisition Restore completed in December 2015 for £57.3 million.
Restore Ireland operates out of two leasehold facilities in Dublin, with a customer base predominantly in the Dublin area. For the 12 months to 31 March 2015, when Wincanton Records Management was owned by Wincanton plc, the Irish business recorded EBIT of €2.3 million (£1.8 million) before central management charges on revenues of €9.7 million (£7.5 million). Provisional gross asset values at 31 December 2015 were €21.3 million (£16.4 million) which includes intangible assets created on acquisition of €17.4 million (£13.4 million).
The net proceeds of the disposal will in the short term be used to reduce net debt. In due course Restore intends to redeploy the proceeds to pursue further growth opportunities in its core mainland UK market.
Commenting on the transaction, Charles Skinner, Chief Executive, said:
"Restore's strategy is to be the market leader in mainland Britain in our chosen activities within office services, where we can generate substantial cost and customer synergies. In view of the limited synergies between Restore Ireland and our UK operations, this disposal realises an attractive valuation for our shareholders and enables us to continue to focus on a market of which we have deep knowledge and where we can achieve better returns. We would like to thank the team at Restore Ireland for their support during our brief period of ownership and wish them well for the future."
For further information please contact: |
Restore plc |
Charles Skinner, Chief Executive |
07966 234 075 |
Adam Councell, Group Finance Director |
07860 402 434 |
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Cenkos Securities |
Nicholas Wells |
020 7397 8900 |
Elizabeth Bowman |
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FTI Consulting |
Nick Hasell Alex Le May |
020 3727 1340 |
