Restore

Website: Restore
Index: AIM
EPIC: RST
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Business Support Services
Market Cap: £350.53M
Payout Frequency: Semi-Annual

Next Restore Dividend

Restore next goes ex-dividend on 11/06/2026. This will be the Final dividend for 2026.

The dividend per share amount is 4.7000p (GBP) and the payment date is 16/07/2026.

Dividend declaration and key dates

Dividend cover and cash support

Adjusted EPS: 22.5p; cover on total FY dividend of 6.9p is roughly 3.3x.
Free cash flow (FY25): £42.9m; covers the proposed final dividend (~6.8x) and comfortably supports the full-year distribution.
Leverage: 1.9x (within 1.5–2.0x target range); Interest cover: 7.0x.

Capital allocation and policy

Progressive dividend policy with “consistent cover” reiterated.
£20m share buyback announced over the next 12 months, framed as a return of excess cash alongside ongoing M&A.
Refinanced £150m RCF to Oct-2028 (with £50m accordion) plus £25m USPP to 2028, enhancing liquidity and visibility.

Sustainability and growth outlook (analyst view)

Dividend is well-supported by high recurring revenues in Information Management, improving margins (Group adjusted operating margin at 20.8%), and strong cash conversion (103%).
Full-year dividend growth of +19% aligns with adjusted EPS growth of +23%, maintaining healthy cover.
Management guides FY26 adjusted PBT “slightly ahead” of consensus, underpinned by >20% margin ambition, suggesting room for continued DPS progression.
Buyback should be accretive to per-share metrics and provides an additional lever for total shareholder returns without stressing leverage targets.

Structural changes and potential impact on dividends

Disposal of Harrow Green (Dec-2025): improves earnings visibility and Group margins; reduces cyclicality — supportive for dividend resilience.
Acquisitions: Synertec (outbound communications) plus multiple bolt-ons; expands contracted/recurring revenue base but introduces earn-out obligations (see risks).
Property consolidation and integration savings (>£5m annualised) bolster margin and cash generation; programme completes by 2027.
RCF refinancing to 2028 lowers funding risk and supports ongoing distributions alongside M&A.
£20m share buyback: near-term cash out but within leverage guardrails; likely supportive of DPS growth over time.

Risks and flags to dividend stability

Adjusting items/statutory optics: statutory PBT (£7.7m) and EPS (1.0p) are depressed by acquisition-related charges (notably Synertec earn-out accounted as remuneration). While non-cash/exceptional in nature, persistently high adjustments could constrain reported cover.
Earn-out exposure: Synertec earn-out payable could be up to £50m (FY28–FY29 targets), with £10.1m currently treated as remuneration and £2.9m contingent consideration on balance sheet; future cash settlements may compete with buybacks/M&A and, at the margin, dividend headroom.
Leverage at 1.9x: within range but near the upper bound; a step-up in M&A or softer trading could limit incremental cash returns.
Ongoing restructuring/property rationalisation costs continue through 2027, though expected to decline; could intermittently impact free cash flow.
Operational sensitivities: Technology division still rebuilding (management targets double-digit margins in 2026); impairment sensitivity analysis shows downside risk if revenue/EBIT under-deliver.
Input/pricing risks: Paper price exposure in Datashred partly hedged; wage and NI cost inflation remain headwinds, albeit mitigated by price increases and efficiency gains.
Customer concentration at Synertec (large NHS exposure) brings benefits of durability but some concentration risk.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
12/06/2025	18/07/2025	Final	3.80p	GBX
18/09/2025	22/10/2025	Interim	2.20p	GBX

Total (Annual Dividends Per Share): 6.00p

Dividend Yield = Annual Dividends Per Share (6.00p) ÷ Share Price (252p) = 2.38%

Ex Dividend Date	Payment Date	Type	Amount	Currency
11/06/2026	16/07/2026	Final	4.7000p	GBX
18/09/2025	22/10/2025	Interim	2.20p	GBX
12/06/2025	18/07/2025	Final	3.80p	GBX
19/09/2024	23/10/2024	Interim	2.00p	GBX
06/06/2024	09/07/2024	Final	3.35p	GBX
21/09/2023	20/10/2023	Interim	1.85p	GBX
08/06/2023	07/07/2023	Final	4.80p	GBX
15/09/2022	14/10/2022	Interim	2.60p	GBX
01/06/2022	08/07/2022	Final	4.70p	GBX
16/09/2021	15/10/2021	Interim	2.50p	GBX
28/05/2020	03/07/2020	Final	4.80p	GBX
03/10/2019	09/11/2019	Interim	2.40p	GBX
06/06/2019	05/07/2019	Final	4.00p	GBX
06/06/2019	12/07/2019	Final	4.00p	GBX
04/10/2018	09/11/2018	Interim	2.00p	GBX
07/06/2018	06/07/2018	Final	3.33p	GBX
12/10/2017	10/11/2017	Interim	1.67p	GBX
08/06/2017	07/07/2017	Final	2.67p	GBX
13/10/2016	11/11/2016	Interim	1.33p	GBX
09/06/2016	08/07/2016	Final	2.20p	GBX
15/10/2015	13/11/2015	Interim	1.00p	GBX
11/06/2015	09/07/2015	Final	1.60p	GBX
16/10/2014	14/11/2014	Interim	0.80p	GBX
11/06/2014	09/07/2014	Final	1.30p	GBX
23/10/2013	28/11/2013	Interim	0.60p	GBX

Year	Interim	Final	Currency	Total	Change
2024	2.000	3.350	GBX	5.350	-19.540
2023	1.850	4.800	GBX	6.650	-8.900
2022	2.600	4.700	GBX	7.300	192.000
2021	2.500		GBX	2.500	-47.910
2020		4.800	GBX	4.800	-53.840
2019	2.400	8.000	GBX	10.400	95.120
2018	2.000	3.330	GBX	5.330	22.810
2017	1.670	2.670	GBX	4.340	22.940
2016	1.330	2.200	GBX	3.530	35.760
2015	1.000	1.600	GBX	2.600	23.800
2014	0.800	1.300	GBX	2.100	250.000
2013	0.600		GBX	0.600

Number of Shares:

Payment	Paid	Amount
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