Insider: directors buy big at two promising AIM companies

A bumper purchase of £460,000 Volex (LSE:VLX) shares by its new board chair has backed up his view that the critical power firm's opportunity for further growth is “enormous”.

• Invest with ii: Top UK Shares | Free Regular Investing | Open an investment Account

Dave Webster started in the non-executive role last month, bringing significant experience from global manufacturing businesses across the public and private sectors. He is the former chief executive of Electrical Components International.

His arrival follows a strong run for the AIM-listed shares, which have more than doubled from their post-tariffs low in April and by 52% year-to-date to Friday’s 416.5p.

The company, which makes critical power and data transmission products, recently reported an acceleration in organic revenues growth to 13% after benefiting from a notable increase of 80% in data centre sales.

The operating margin of 9.8% in November’s interim results was towards the upper end of the group’s 9-10% target range. Underlying profit rose 29% to $48.5 million (£36.3 million) and the interim dividend lifted by 6.7% to 1.6p a share.

• Stockwatch: this share is an intriguing special situation
• Bank of England ‘behind the curve’ even after likely rate cut

Chief executive and major shareholder Nat Rothschild said broad exposure to high-growth sectors, such as electric vehicles and complex industrial technology, plugged Volex into “secular tailwinds and enables us to deliver consistent through-cycle performance”.

Berenberg lifted its price target to 470p following the results and appointment of Webster. The bank said: “This was another strong set of results from Volex and we expect the operational performance and management appointments to be taken well, driving better engagement from investors.”

Webster, who bought his shares at a price of 408p, said last month: “The opportunity for further growth is enormous, and I look forward to working with the board to drive shareholder value over the coming years.”

Restoring faith

A director of leading AIM company Restore (LSE:RST) has picked up £50,000 of shares after the document manager upgraded guidance and sold one of its divisions to the owner of Pickfords.

The investment by non-executive director Patrick Butcher came during a strong week for the shares, which recouped the losses seen since October with a rise of 20% to 278p.

The resurgence came as City firm Berenberg said a valuation of 10.2 times forecast earnings was “at odds with the momentum and quality of fundamentals in the business”.

The German bank lifted its price target by 20p to 380p in the wake of last week’s trading update, while counterparts at Canaccord Genuity increased their estimate to 425p.

Restore, whose operations span records management, cloud and data storage and document shredding, rallied despite a £1 million headwind from a 10% post-Budget hike in business rates.

It said the strong performance of its core businesses still meant it would beat its medium-term adjusted operating margin target of 20% in both this year and in 2026.

• Retail top picks for 2026 revealed
• Sector Screener: time to grab Tesco and Sainsbury’s shares?

The forecast-beating update came as Restore announced the sale of its blue-chip commercial relocation business Harrow Green in a deal with the owners of removals firm Pickfords. The price tag is £5.5 million, of which £2 million is dependent on 2026 performance.

Harrow Green faced “very challenging” market conditions in 2025, leading to an estimated £5 million fall in revenues to £30 million and a much smaller operating profit of about £300,000.

Berenberg said that recent trading at Harrow Green contrasted with the remaining group’s rebuilt momentum, which last week led to a 2% upgrade to its 2026 profit forecast.

The disposal followed the pledge made by chief executive Charles Skinner on his return to the group in September 2023 that he would fix or else remove assets within the group.

Skinner, who previously ran Restore between 2009 and 2019, said last week that it had been a “strategically busy year” following seven acquisitions and the Harrow Green disposal.

The former chief executive of Brandon Hire and Johnson Service Group added: “With strong management teams now in place at each of the group's three divisions, Restore is a simpler and more cohesive group.”

The business, which was established in 1995 and joined the stock market in 2005, is now among the 50 largest companies on AIM with a market valuation of about £355 million.

• Five top share trades for 2026
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

Last week’s update showed that the core physical storage business continues to grow on the back of inflation-linked pricing and the final phase of a property consolidation programme.

The group’s digital activities, predominantly scanning, have been integrated into this division with the realisation of a better-than-expected £5 million of annualised cost savings.

Datashred, which provides onsite and offsite shredding services, has benefited from increased visit numbers and largely stable paper prices.

Restore’s IT recycling and data destruction business is now much improved, with leaner operations and a focus on larger customers who have more uniform and higher-quality IT assets.

Canaccord Genuity sees the company’s full-year adjusted profit rising from 2024’s £34 million to £40.3 million in 2025 and £45 million next year.

It said the current valuation metrics looked too low, given the quality of earnings and high cash generation in the company’s largest division of Information Management. Restore trades with a projected dividend yield of 2.7%.

Butcher, who is the former finance boss of Capita, bought his shares at a price of 261.7p, having also spent £25,000 at 228p in March.