Restore seals £140m contract with HMRC

6th Sep 2023 13:56

(Sharecast News) - Shares in document management firm Restore surged on Wednesday after the company announced a £140m contract with with HMRC.

The contract, which spans a duration of five to seven years, is expected to kick off this month.

Restore will take on responsibility for three service towers on behalf of HMRC: outbound print and messaging, inbound mailroom and scanning services (the latter two Restore already provides under its existing with HMRC).

"Within this service, Restore will deliver a communications platform, working with its strategic partners, aimed at moving HMRC's customers to digital communications," the company said in a statement. "Through this partnership, Restore will support the transformation of HMRC's operations into a cutting-edge digital solution and at the same time, deliver for HMRC a reduction in paper consumption by the end of the contract term."

The stock was up 19% at 214.5p by 1358 BST. Nevertheless, even with Wednesday's gain, the shares have still lost over a third of their value in 2023 alone, after a profit warning and CEO exit reported in June.

The company announced on Tuesday that its old boss, Charles Skinner, would rejoin the firm with immediate effect, after leaving the company in 2019 following 10 years at its helm.