Pre-close trading update

RNS Number : 8224V

Safestore Holdings plc

09 November 2010

 



FOR IMMEDIATE RELEASE                                                                        9 November 2010

Safestore Holdings Plc

Pre-close trading update for the year ended 31 October 2010

Continued strong trading

Safestore Holdings plc ('Safestore' or 'the Company'), the largest self storage company in the UK and Paris is pleased to report on its trading progress (unaudited) for the year ended 31 October 2010.

·    Revenue for the year to 31 October 2010 was £89.2 million, an increase of 5.7% compared to £84.4 million last year.

·    Revenue for Quarter Four ("Q4") was £23.9 million, an increase of 8.0% compared to the same period last year and 4.6% over Quarter Three ("Q3") this year.

·    Occupancy growth for the year ended 31 October 2010 was 168,000 square feet ("sq ft") compared to 57,000 sq ft last year, an increase of 217%.

·    Closing occupancy at 31 October 2010 was 2.94 million sq ft.

·    The average self storage rental rates per sq ft in the UK and France were up 3.3% and 4.7% respectively this year over last on a constant currency basis. The impact of foreign currency movements has reduced the increase to 1.2% at group level at £25.55 per sq ft compared to £25.24 last year.

·    Average self storage rental rate per sq ft for Q4 was £25.94, an increase of 3.1% compared to Q3 and 1.8% over Q4 last year.

Safestore has seen a record year for self storage rental rates and annual revenue. We have also delivered strong occupancy growth resulting in closing occupancy being at its highest level ever for the year end.

The performance across all geographical regions of the UK and Paris has been strong with revenue, rate and occupancy up in all regions over the year.

Q4 is traditionally the weakest quarter for occupancy growth and, as expected, we did see some decline in overall occupancy during the period. This is due to the normal high level of vacates, which is a natural result of the stronger new lets trend in the first nine months of the year and the seasonal impact of students who use storage in Q3 returning to education in Q4. Occupancy declined by 38,000 sq ft during the quarter compared to a decline of 53,000 sq ft last year.

Encouragingly, enquiries and new lets have remained at high levels during Q4. The self storage rental rate has also continued to grow during the quarter despite the high level of new lets which create a short term dilution in overall rental rates due to the impact of the initial offers with each new let.

The Board of Safestore is confident that the full year results will be in line with the Board's expectations.

Safestore has opened three new stores in the year; one in Paris, one in Crystal Palace and one in Barking. In addition, we disposed of the business centre at Digbeth during the year. As a result we now have 118 stores trading (96 UK and 22 Paris).

Steve Williams, Chief Executive Officer, commented:

"The results for the year continue to demonstrate the strength of the business and our diverse customer base. We believe that the business has benefitted from our geographic spread throughout the UK and Paris during a difficult economic period.

We have been particularly pleased with the record level of enquiries and new lets. Enquiries from the web continue to grow and we are continuing to see increased new business from National Accounts as well as from our strategic alliances.  The strong year-on-year performance and continued improvement in occupancy and rental rate has also been pleasing. 

Safestore is the self storage market leader and our well established diversification and low cost business model gives us confidence to withstand the uncertainties of the economic environment and take advantage of the favourable longer term trends in the self storage industry".

Ends

Enquiries

Safestore Holdings plc	020 8732 1500
Steve Williams, Chief Executive
Richard Hodsden, Chief Financial Officer
www.safestore.com
Hudson Sandler	020 7796 4133
Nick Lyon / Wendy Baker

Notes to editors:

·	Safestore is the UK's largest self storage group with 130 stores including 96 wholly owned stores and 12 stores under management throughout the UK and 22 stores in Paris.
·	The Company provides storage facilities to more than 41,000 domestic and business customers (up circa 8.0% since 31 October 2009).
·	Safestore (excluding Space Maker stores under management) has a maximum lettable area ("MLA") of approximately 5.4 million sq ft (including the expansion pipeline stores) of which 2.94 million sq ft is currently occupied.
·	A strong balance sheet and operational cash flow allow Safestore to invest in continual improvements in the operational performance of its stores, in new store development and acquisitions where appropriate.
·	Safestore employs around 500 people.

 

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