Restore (LON:RST) held a well-attended investor and analyst site visit last week near Doncaster, taking in the new Markham Vale Records Management facility and a state-of-the-art Datashred facility at South Kirkby. The tours were hosted by local management and followed up by presentations from the Restore executive team.
No new financial information was disclosed, but the visit did provide a clear link between the previously stated Group growth and margin targets and the actions being taken at divisional level, with greater autonomy, to deliver against these stretching targets.
FY24 is important as a first step in the medium-term profit recovery story. We are forecasting double-digit profit growth, following a challenging FY23.
In our view, Restore’s share price does not yet reflect recent progress under the new management team or the upside potential of medium-term targets. We reiterate our 400p Fair Value estimate and look forward to a further update on progress in a scheduled trading update on 21st November.
Link to note: https://www.equitydevelopment....
