This is an updated version of the report published on April 27, 2026 at 08:31 AM GMT+1 

Restore PLC (LSE: RST) 

Restore PLC (LSE: RST) is a FTSE AIM 100 index stock, it provides support services specialising in secure information management and lifecycle services. The company offers document storage, digital scanning, secure shredding, data management, IT asset lifecycle services, and relocation solutions to corporates and public sector clients across the UK. 

Key Recommendation Rationale – Sell at GBX 270.00

• Sharp Decline in Statutory Profit Signals Underlying Earnings Volatility - While adjusted metrics show strong growth, statutory profit before tax fell 55% to £7.7m and EPS dropped 89% to 1.0p. This highlights the significant impact of acquisition-related costs and exceptional items, raising concerns about the quality and consistency of reported earnings.
• Rising Debt Levels Increase Financial Risk - Net debt rose materially to £123.8m (up 39%), pushing leverage to 1.9x. Although still within the target range, the increase reflects heavy acquisition activity and suggests greater reliance on debt-funded growth, which could become a concern if cash flows weaken or interest rates remain elevated.
• Limited Organic Growth Indicates Dependence on Acquisitions - Revenue growth of 27% was largely driven by acquisitions, while organic growth remained broadly flat. This indicates that underlying business expansion is relatively subdued, making the company dependent on inorganic growth strategies, which carry integration risks and may not be sustainable long term.

Share Price Chart  

Valuation Methodology: Price/ Earnings Approach

Conclusion

RST is expected to trade at a discount, considering Rising Debt Levels Increase Financial Risk and fears of global slowdown. For conducting the valuation, the following peers have been considered – Gateley (Holdings) PLC (LSE: GTLY), Robert Walters PLC (LSE: RWA) and others.

Given its current trading levels, Limited Organic Growth Indicates Dependence on Acquisitions, recent rally in the share price, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 270.00 as of 27 April 2026, at 08:03 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 27 April 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and/or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.