Restore snaps up records management firm

AIM-listed support services firm Restore announced a placing to raise up to seven million pounds to fund the purchase of File & Data Storage, a records management services company in the UK.

AIM-listed support services firm Restore announced a placing to raise up to seven million pounds to fund the purchase of File & Data Storage, a records management services company in the UK.

The acquisition of File & Data is worth an initial consideration of £6.1m but includes a cash earn-out capped at £150,000 subject to the its financial performance.

"The acquisition of File & Data will further strengthen Restore's position as one of the UK's leading providers of records management services and brings the benefit of some strong and long-standing customer relationships," Restore said in a statement.

It plans to place up to 6,558,559 new ordinary shares at 111p each, raising up to £7.0m after expenses.

"Restore has been active in consolidating the UK records management market since 2010 to become what we believe is now the second largest provider of records management services in the UK," said Chief Executive Charles Skinner.

"File & Data has a strong national presence and some excellent customer relationships and its acquisition will further enhance our platform for growth. The Board looks forward to the contribution to the Group that File & Data will make."

Shares were 5.63% higher at 122p by Wednesday afternoon.

Recommended

Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022
Invest in VCTs: tax-free investments set to break records
Investment strategy

Invest in VCTs: tax-free investments set to break records

Generous tax breaks make VCTs – venture capital funds – an attractive supplement to pensions.
21 Jan 2022
HubSpot: a tech stock set to tumble
Trading

HubSpot: a tech stock set to tumble

US tech stocks have had a fantastic couple of years. But this year is unlikely to be so bullish for high-fliers that can’t turn big profits.
18 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022
US inflation is at its highest since 1982. Why aren’t markets panicking?
Inflation

US inflation is at its highest since 1982. Why aren’t markets panicking?

US inflation is at 7% – the last time it was this high interest rates were at 14%. But instead of panicking, markets just shrugged. John Stepek explai…
13 Jan 2022