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Document management business hasn't had the big GDPR-related uplift in earnings previously anticipated
Thursday 20 Sep 2018 Author: Daniel Coatsworth

Restore (RST:AIM) 471p

Loss to date: 7.1%

Original entry point: Buy at 507p, 29 March 2018

We’re disappointed with how shares in the document management business are performing, particularly as Restore (RST:AIM) was meant to have enjoyed a recent catalyst from new data protection laws called GDPR.

The clampdown on how data has to be managed resulted in higher than normal box destruction rates in the six months to 30 June, balanced by more project revenue as clients had to pay a fee to look through their boxes being stored by Restore.

Chief executive Charles Skinner says GDPR has been neutral short-term for the business, but could result in slightly higher box destruction rates in the medium term. He also thinks clients will do more shredding and scanning in the future.

The trading period included the acquisition of TNT Business Solutions, yet Restore couldn’t get its hands on the business to enforce change until August as it was blocked while competition authorities looked at the deal. It bought the business to get a leg up in the public sector where it sees considerable outsourcing opportunities.

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