Safestore sees earnings at top end of guidance after profit swells

(Alliance News) - Safestore Holding PLC on Thursday said it expects earnings for the year to be ...

Alliance News 17 June, 2021 | 9:35AM
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(Alliance News) - Safestore Holding PLC on Thursday said it expects earnings for the year to be at least at the top end of its previous guidance after a surging interim profit performance.

Pretax profit in the six months ended April 30 rose 68% to GBP167.3 million from GBP99.7 million a year prior. The improvement was attributed to a strong trading performance and an increased gain on investment properties of GBP127.7 million, almost doubled from GBP64.0 million a year previously.

The self-storage space provider posted revenue for the period of GBP88.1 million, an 11% increase year-on-year from GBP79.3 million.

Safestore said strong trading momentum in the first quarter - when sales increased 9.8% year-on-year on a constant currency basis - accelerated in the second. Its pipeline of new stores and extensions in the UK, Paris and Spain will add 575,000 square feet to its portfolio.

"I am pleased to report a very strong performance in the first six months of the year with trading momentum accelerating in the second quarter driven by the strength of our UK performance combined with continued robust results from our French and Spanish businesses," commented Chief Executive Frederic Vecchioli.

"Our performance in this period has demonstrated the excellent operating leverage in our platform as we drive net lets and revenue."

Commenting on the third quarter, Safestore said trading had started well with like-for-like sales for May up 16% on a year ago, slightly ahead of expectations. Despite continuing uncertainty due to the pandemic, the group commented that its business model remains "highly resilient" and that it is "strongly positioned to withstand" a downturn.

"The accelerating momentum in our second quarter performance gives me confidence in relation to the outlook for the full year and I anticipate that the business should deliver adjusted diluted EPRA earnings per share for 2020/21 at least at the top end of our previous guidance of 37p to 38p, which would represent growth of at least 26% compared to the prior year," said Vecchioli.

The Hertfordshire-based company declared an interim dividend of 7.5 pence per share, up 27% from 5.9p in the prior year period.

Shares were down 0.7% at 953.50p in London Thursday morning trading.

By Will Paige; willpaige@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Safestore Holdings PLC Ordinary Shares 1,056.00 GBX 1.44 -

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