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Safestore To Meet Full-Year Expectations As Third Quarter Revenue Up

LONDON (Alliance News) - SafeStore Holdings PLC on Thursday reiterated it expects to meet its ...

Alliance News 14 September, 2017 | 8:49AM
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LONDON (Alliance News) - SafeStore Holdings PLC on Thursday reiterated it expects to meet its expectations for its full year, as it reported a rise in revenue for its third quarter.

The self-storage facility provider said its revenue for the quarter ended in July rose 15% to GBP32.9 million from GBP28.6 million in the same period the year before, or up 12.5% at constant exchange rates.

This takes its revenue for the year to date to GBP95.5 million, up 15% from GBP82.7 million, or 12.4% at constant currency.

Safestore said its closing occupancy rate for the quarter was 73.1%, down 1.7 percentage points from 74.8% for the prior year. The average storage rate rose 0.7% year-on-year to GBP26.06 per squarter foot from GBP25.87, but fell 1.5% at constant currency.

On a like-for-like basis, revenue for the quarter rose 5.3% to GBP29.9 million from GBP28.4 million. This was helped by a strong performance in Paris, up 5.7%, whilst the UK rose 2.3%.

"I am pleased to report continuing positive trading across the group in the third quarter with particularly strong momentum in our Paris business. As ever, our top priority remains the significant organic growth opportunity represented by the 1.5 million square feet of currently unlet space in our existing fully invested estate," said Chief Executive Officer Fredric Vecchioli in a statement.

"Our recent openings in London (Wandsworth and Chiswick), Paris (Emerainville and Combs-la-Ville), Birmingham and Altrincham, are all performing in line or ahead of their business plans as is Space Maker, the twelve-store portfolio acquired in July 2016. I am also pleased to announce our new store at Paddington Marble Arch and look forward to its forthcoming opening along with our new store in Mitcham in the next financial year," Vecchioli added.

Looking ahead, Safestore said that "reflecting normal industry patterns", it expects to see a reduction in occupancy in the fourth quarter compared to the third.

"I am confident that our leading market positions in the UK and Paris will enable us to withstand any challenges presented by the current uncertain macro-economic backdrop. The company is in a strong position and remains on course to meet the board's full year expectations," Vecchioli said.

Shares in Safestore were up 0.6% at 412.80 pence Thursday.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Safestore Holdings PLC 474.60 GBX -0.34 -
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