Safestore Share Price (SAFE)

Safestore Holdings, the provider of self-storage in the UK and France, said it had performed in line with expectations in the last year. The firm said revenues were up 4% to £98.8m and it had let 3.29m square feet of space, up 2.4% up on last year's record level. However, it said attempts to pass on a recent hike in VAT on storage in the UK had resulted in higher numbers of people vacating their storage and lower levels of new business. "While it will take more than one month's data to fully assess the impact on our business, early indications suggest that it remains in line with previous guidance," the company said. Total revenue in the UK for the fourth quarter was up 2.7% compared to the previous year, the trading update said. At the end of the year occupancy across all stores in the UK was 2.54m sq ft., up 1.6% on the year before. Trading in Paris remained resilient, which the firm said was down to its strong competitive position amid the challenges of the Eurozone economy. Total French revenue for the fourth quarter was up 4.3% over the prior year in constant exchange rates, but down 4.7% in Sterling, reflecting the significant year on year fall in the Euro. Closing occupancy was 71.6% at the end of October, down from 75.2% in 2011 owing to the opening of new stores added late in the year.

The UK division has responded well to the firm's strategy of boosting performance through enhanced sales and marketing and a focus on yield management. Total revenue in the UK for the third quarter was up 5.8% compared to the same period the previous year. Trading in Paris remained "robust", reflecting what the firm described as its "strong competitive position amid the challenges of the Eurozone economy". Total revenue for the period was up 5.6% over the prior year in constant exchange rates, but down 3.4% in sterling, reflecting the significant fall in Euro exchange rates. Looking ahead the company added: "We have seen a slower start to the fourth quarter in terms of new lets, particularly during the London 2012 events. However, this is traditionally one of our softer trading periods and revenue growth remains solid, with August revenues up 5.4% on last year in constant exchange rates and up 2.7% in sterling."

Safestore Holdings, a self storage retailer, posted a 3.4 per cent rise in third quarter revenue, boosted by further occupancy gains, but warned of a slower start to the fourth quarter. Revenue for the three month period climbed from £24.1m to £24.9m year-on-year (y/y), while year-to-date revenue grew 5.4% from £69.6m to £73.4m y/y. This was despite a 5.9% decline in the average self storage rental rate, from £25.91m to £24.37m y/y. Peter Gowers, Chief Executive Officer said: "While macro-economic conditions remain challenging, we are making good progress as we implement the 'More Space' strategy outlined in January 2012. During the quarter, we delivered strong constant currency revenue growth, as well as further progress on our strategic priorities to strengthen the brand, drive operational excellence, build a powerful team and create value. "As we progress through the fourth quarter, our scale and strong competitive position leave us well positioned to withstand the short-term headwinds of adverse foreign currency movements and the introduction of VAT on UK self-storage." The company added that it has continued to focus on driving organic growth by striking the right balance between occupancy and rate growth to maximise revenue per available foot.

Looking ahead the company added: "We have seen a slower start to the fourth quarter in terms of new lets, particularly during the London 2012 events. However, this is traditionally one of our softer trading periods and revenue growth remains solid, with August revenues up 5.4% on last year in constant exchange rates and up 2.7% in sterling." The share price fell 2.16% to 101.75p by 16:35.

"As we progress through the fourth quarter, our scale and strong competitive position leave us well positioned to withstand the short-term headwinds of adverse foreign currency movements and the introduction of VAT on UK self-storage." The company added that it has continued to focus on driving organic growth by striking the right balance between occupancy and rate growth to maximise revenue per available foot. The UK division has responded well to the firm's strategy of boosting performance through enhanced sales and marketing and a focus on yield management. Total revenue in the UK for the third quarter was up 5.8% compared to the same period the previous year. Trading in Paris remained "robust", reflecting what the firm described as its "strong competitive position amid the challenges of the Eurozone economy". Total revenue for the period was up 5.6% over the prior year in constant exchange rates, but down 3.4% in sterling, reflecting the significant fall in Euro exchange rates.

Safestore Holdings, a self storage retailer, posted a 3.4 per cent rise in third quarter revenue, boosted by further occupancy gains, but warned of a slower start to the fourth quarter. Revenue for the three month period climbed from £24.1m to £24.9m year-on-year (y/y), while year-to-date revenue grew 5.4% from £69.6m to £73.4m y/y. This was despite a 5.9% decline in the average self storage rental rate, from £25.91m to £24.37m y/y. Peter Gowers, Chief Executive Officer said: "While macro-economic conditions remain challenging, we are making good progress as we implement the 'More Space' strategy outlined in January 2012. During the quarter, we delivered strong constant currency revenue growth, as well as further progress on our strategic priorities to strengthen the brand, drive operational excellence, build a powerful team and create value.