(Alliance News) - Safestay PLC on Friday reported a a widened loss for 2019 on higher costs as it announced measures to aid recovery of its business post-Covid-19.
Shares in the hostels operator were trading 6.7% higher at 16.00 pence each at midday Friday in London.
For 2019, Safestay posted revenue of GBP18.4 million, up 26% year-on-year from GBP14.6 million. The pretax loss was GBP635,000, widened from GBP604,000.
The widened loss was attributed to a rise in costs, as administrative expenses rose to GBP13.0 million from GBP10.7 million and finance costs went up to GBP2.6 million from GBP1.6 million.
Turning to 2020, Safestay said that in response to the Covid-19 pandemic and the temporary closure of all its hostels, it agreed a GBP5 million overdraft with HSBC Holdings PLC, took advantage of available UK government support schemes, and is now working to begin a phased re-opening of its sites.
"We secured the financial stability of the business and we are now working on our plans to re-open our hostels on a staggered basis, over the course of 2020, as and when we believe they can be profitable. Our teams remain in place and while it will take time to re-build our bookings to pre-Covid 19 levels, we are confident of being able to do so and perhaps also taking advantage of corporate opportunities that will arise from this crisis," said Chair Larry Lipman.
By Ife Taiwo; ifetaiwo@alliancenews.com
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HSBC Holdings (HSBA)
Safestay (SSTY)