Restore PLC (RST: LN)
12-month performance: 0%
Insider activity: Bullish
Buying pattern: Purchases from CEO and CFO
Recent news: Provided Covid-19 update
Restore is a UK-based support services company that provides document management and relocation services. Its document management division focuses on document storage, cloud and media storage, and document shredding, while the relocation division is engaged in commercial and workplace relocation and IT relocation. The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and currently has a market capitalisation of £468 million.
Restore recently withdrew its guidance for 2020 due to the uncertainty associated with the coronavirus. In an update on 21 April, the company advised that it was difficult to determine the nature and extent of the impact of the disruption with certainty. However, the company also said that the actions it has taken recently to preserve cash and reduce costs give it “adequate headroom” to manage through the current uncertainty, and that it expects to be profitable this year. "After a strong year in 2019 we enter this period of significant uncertainty with solid operational and financial foundations to face the inherent headwinds. We have acted quickly to maintain operational capability and preserve cash, mindful that when the crisis is over with the reputation and services we provide in fragmented markets we will bounce back strongly," said CEO Charles Bligh.
Source: 2iQ Research
What stands out to us about Restore is the fact that both Bligh and CFO Neil Ritchie have purchased RST shares since the company’s recent business update. On 23 April, Ritchie purchased 5,356 shares, spending £20,000 on stock, and then on 24 April, Bligh bought 6,659 shares, spending £25,000 on stock. While these were not massive purchases in an absolute sense, they did increase the two insiders’ position sizes significantly – by 89% and 40% respectively. These purchases indicate that top-level management expects the company to survive a near-term economic downturn, and also expects the share price to rebound in the future.