Safestore Makes Strong Start To Financial Year Amid Acquisition Growth

LONDON (Alliance News) - Safestore Holdings PLC said on Thursday it saw 10% year-on-year growth ...

Alliance News 22 February, 2018 | 11:01AM
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LONDON (Alliance News) - Safestore Holdings PLC said on Thursday it saw 10% year-on-year growth in revenue for the first quarter of its financial year, following new acquisitions and openings during the period.

For the three months ended January 31, the FTSE 250-listed self-storage provider achieved revenue of GBP35.1 million, up from GBP31.8 million for the same period a year before, representing a 9.8% rise at constant exchange rates.

Closing occupancy also rose, to 4.4 million square feet let from 3.9 million square feet a year before, and as a percentage of the maximum lettable area to 70.0% from 68.6%, following the acquisition of the Alligator Self Storage Chain in November.

The average storage rate declined however by 4.0% to GBP25.95 per square foot from GBP27.02, as a result of the rate achieved by the Alligator portfolio being lower than that of the Safestore portfolio.

Safestore reported a strong performance in both the UK and Paris, through new store openings, the acquisition of Alligator and favourable currency movements.

"Our first quarter performance has been pleasing, supported by revenue from our recent acquisition of Alligator Self Storage complementing solid like-for-like growth. The strong trading momentum from our Paris stores continued in first quarter, combined with encouraging UK occupancy growth," said Chief Executive Officer Frederic Vecchioli.

"Over the last eighteen months we have consolidated our market leading positions in the UK and Paris with the addition of 30 stores to the portfolio via the acquisitions of Space Maker and Alligator and the opening of six new sites. We continue to progress our new store pipeline with four new sites in London, Birmingham Merry Hill and Paris Poissy. In addition, our strong and flexible balance sheet allows us to continue to consider value accretive investments as and when they arise," Vecchioli added.

Shares in Safestore Holdings were down 0.9% at 500.50 pence on Thursday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Safestore Holdings PLC 639.00 GBX 1.03 -
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