Befitting its rather dull core business of storing documents in huge warehouses, the recent success of Restore (LSE:RST) seems to have flown under the radar of many retail investors. But because of the necessity of its core business for a variety of professional industries, from accountants to solicitors, Restore has returned nearly 400% to investors over just the past five years.
Treatt has posted yet another year of excellent growth, with revenues up 25% and adjusted PBT up c 45%. The company has reached its FY20 financial objectives three years early, and the management has therefore updated its strategy to take the company through to the next phase. A new facility is being built in the UK, and the US site is being expanded. Both projects are on track and Treatt has now announced a share placing to fund these projects. This was always flagged as a possibility. We update our forecasts to reflect the FY17 results and the share placement. Our fair value is 515p (from 522p previously).