People: Restoration drama

As foreshadowed by Growth Company Investor, expatriate tycoon and Tory financier Lord Ashcroft’s recuperating document storage and data management group Mavinwood has changed its name to Restore. Ashcroft owns most of the shares in the company, which hitherto has been an AIM dog, but is now pursuing a revival under chief executive Charles Skinner, a former SG Warburg and 3i turnaround specialist who joined a year ago after building up the Brandon Hire tool supply company and retrieving the previously scandal-ridden Johnson Service Group.

Skinner, who spotted that the old Mavinwood had over-extended itself two years ago and enlisted Ashcroft’s support for a turnaround, has cut the debts of Mavinwood/Restore, pruned its business range and slashed overheads. Recently he was able to report a recovery from £2.1 million interim losses to first-half pre-tax profits of £386,000 on turnover down by £700,000 to £13.4 million in the six months to June.   

The company’s core Restore (Wansdyke) business performed robustly in the first half -year. Document scanning has had a tough time, but Skinner insists medium-term prospects are fair. Still historically depressed, after a major consolidation, the shares are now showing signs of life and Ashcroft and Skinner are looking forward to their reward.