Safestore On Course To Meet Full-Year Expectations As Fourth Quarter Revenues Decrease

LONDON (Alliance News) - Safestore Holdings PLC said it was on course to meet full-year expectations as it posted decreased revenues in the fourth quarter.

The self storage operator posted a fourth quarter revenue of GBP24.8 million, down from GBP25.4 million in the previous year. Full-year revenue was GBP96.1, down from GBP98.8 million.

Revenues were hampered by the imposition of VAT on self-storage by the UK Government in June, Safestore said. However, it had less impact on performance than Safestore had anticipated. Safestore expected a GBP5 million or GBP6 million reduction in revenues.

UK occupancy decreased in the fourth quarter by 27,000 square feet to 2.56 square meters. This meant that 63.5% of its total space was occupied, ahead of 61.9% in the previous year. Safestore said this was expected as the peak summer season came to close.

In France revenue increased 4.2% compared to the previous year. Occupancy increased 3,000 square feet in the fourth quarter, increasing total occupancy to 0.76 square meters, or 71.9% of its total space.

"The UK business has now come through the first full-year of the imposition of VAT in good shape, demonstrating strong demand and our ability to flex the cost structure to limit the impact on profitability, which remains on-course to met the board's full year expectations," Chief Executive Officer Frederic Vecchioli said in a statement.

Alan Lewis has been appointed non-executive Chairman, succeeding Richard Grainger. Lewis had previously served at Porterbook and National Friendly.

Shares in Safestore were trading up 2.1% at 155.20 pence Wednesday afternoon.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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